Suggestion: Diversify Revenue Streams and Enhance Customer Experience through Ancillary Services To alter and strengthen Air Canada’s strategy and approach amidst the COVID-19 c
QUESTION
Suppose you are head of strategy of Air Canada who believes it will marginally survive the COVID-19 challenges. What do you suggest the company undertake to alter or strengthen its strategy and approach moving forward
For this topic I need one suggestion for Air Canada . And this suggestion should cover all details and follow the steps I give to you,
ANSWER
Suggestion: Diversify Revenue Streams and Enhance Customer Experience through Ancillary Services
To alter and strengthen Air Canada’s strategy and approach amidst the COVID-19 challenges, I recommend focusing on diversifying revenue streams and enhancing the customer experience through the introduction and expansion of ancillary services. This strategic initiative will allow Air Canada to mitigate the impact of reduced air travel demand and create additional revenue streams while providing enhanced value to its customers. The key components of this suggestion are as follows:
Introduction of Ancillary Services: Air Canada should explore and introduce a range of ancillary services that complement its core air travel offerings. These services can include add-ons such as travel insurance, baggage services, in-flight entertainment options, premium seating upgrades, priority boarding, and access to airport lounges. By offering these services, Air Canada can generate incremental revenue from its existing customer base and improve profitability.
Partnerships and Alliances: Air Canada should establish strategic partnerships and alliances with other travel-related businesses to expand its ancillary service offerings. Collaborations with hotels, car rental companies, travel agencies, and destination management companies can create bundled packages that enhance the overall travel experience for customers and generate additional revenue streams.
Digital Transformation: To effectively deliver ancillary services and enhance the customer experience, Air Canada should prioritize its digital transformation efforts. This includes developing user-friendly mobile applications and online platforms that provide easy access to ancillary services, personalized travel recommendations, and seamless booking and payment processes. Investing in advanced technology and data analytics will enable Air Canada to understand customer preferences better, tailor services to their needs, and improve overall customer satisfaction.
Loyalty Programs: Air Canada should leverage its existing loyalty program, Aeroplan, to drive customer engagement and generate additional revenue. By expanding the range of rewards and benefits offered through the program, such as exclusive access to ancillary services, priority check-in, and enhanced baggage allowances, the airline can incentivize customer loyalty and increase revenue from frequent travelers.
International Expansion and Market Diversification: Air Canada should actively explore opportunities to expand its presence in international markets and diversify its revenue streams geographically. This can involve launching new routes, forming strategic alliances with international carriers, and targeting emerging travel markets where demand is recovering at a faster pace.
By implementing these strategic initiatives, Air Canada can alter its approach and strengthen its position in the aviation industry, even in the face of ongoing COVID-19 challenges. Diversifying revenue streams through ancillary services, forging partnerships, embracing digital transformation, enhancing customer loyalty programs, and expanding internationally will not only generate additional revenue but also enhance the overall customer experience, ensuring the company’s long-term success.
