By: Mavis Chng

Jetstar

The Leisure Traveller The Business Traveller

“The Jetstar Customer is likely to come from a household of high disposable income. They are twice as likely to have a household income of over S150,000 than the average Australian, and more than half (53.2%) consider themselves to be Big Spenders.”Source: Jetstar Media Kit 2013

Singles & Young Couples:- Aged 18 – 34 years- 72% have personal

income over AUD$ 70,000 P.A.

- Chasing a common experience.

- High spend on fashion, restaurants and fun

Families:- Aged 25-44 years.- Managers/Professionals,

dual income household.- Twice as likely to have

household income over AUD$70,000 P.A then the Australian average.

- Plan in advance, theme parks, attractions and entertainment.

- Aged 35-59 years.- Professionals- From SME and big

business including GMs and C Suite Executives

- Qantas Frequent Flyer Miles accumulated with Jetstar

- Fly Jetstar out of fiscal responsibility

Jetstar:- Differentiated strategy: Leisure and Business Travellers- Segmentation variables: Income (Above national average), Age (18-59 years, people who are most likely to make

travel decisions and purchases), Groups (Singles, Young Couples, Families, Professionals), Lifestyles (High spend on fashion, restaurants and fun, Plan in advance), Brand Loyalty and Benefit expectations (Qantas Frequent Flyer Miles), Price sensitivity (Plan in advance, Fiscal responsibility)

- Market segment profiles: Similarities- High disposable income and above national average, Big Spenders; Differences- Travelling budgets, Frequency of travel, Travel expectations

By: Mavis Chng

- Jetstar targets both the consumer and business markets.- Travel is a need for both consumers and businesses. Jetstar provides aviation service required by both markets.

According to Roy Morgan Single Source Survey 2013, 65% of people travel for Leisure, and 31% travel for Business, 4% travel for other reasons.

- Income: Targets leisure travellers with above national average annual income, >AUD$70,000, these people are those with spending power on travel for leisure, to relax, explore the world and gain experiences. Australia’s real net disposable income per person in 2010-11 was $51,800. The buying power of people with more than $70,000 means they are able to spend on other items after paying for basic necessities. (Source: http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/1370.0main+features392013)

- Age 18-59 years old: For Leisure travellers, these are the people who make the choice to travel or not, and have the purchasing power. For Business travellers, especially GMs and C Suites, they are usually older as compared to fresh graduates who just started work, and may not travel as frequently for work.

- Lifestyles: Big spenders on fashion, restaurants and fun are people who would want to have new experiences, getting unique fashion pieces from their travel trips, try out different cuisines in different countries, which they find fun in exploring new places. For families, parents would plan in advance for activities and places to visit which are family friendly, and for the best price, as travelling as a family can be rather costly.

- Price sensitivity: After the financial crisis in 2010, many people were affected greatly, and they realized the importance of cutting down on expenses. Till today, the economy has not fully recovered. The economy has become unpredictable and does not follow the 5 years business cycle anymore, recession can hit anytime. Therefore whether at personal or business level, people are looking at more cost-effective ways to obtain what they want. Companies encourage staff to travel on economy class or on budget flights especially for short haul trips, which can turn out to be tremendous savings.

- Brand loyalty and Benefit expectations: For frequent travellers, Frequent flyer miles are very attractive as they can be used to upgrade their seats or redeem for free tickets on full service flights. Especially for business travellers who travel often, it is easy for them to build up points. Loyalty programmes like these also encourage brand loyalty, encourages customers to return for subsequent purchases.

- Having identified the market’s needs,, considering the various market variables and profiles, Jetstar is able to fulfill the needs, and therefore capture the attention of consumers and convert them into customers.