• by John Gaffney , August 5, 2002

When JetBlue announced record earnings last week, it was more than just financial performance that put it over the top. A new approach to marketing, advertising and customer research have led the brand to this point.

According to the company, operating revenues for the second quarter totaled $149.3 million, representing growth of 90.4% over operating revenues of $78.4 million in the second quarter of 2001.

JetBlue is shaking up the staid world of airline marketing and advertising with new strategies, new tactics and an obsessive focus on tracking customer preferences and delivering on them. By giving customers what they want, these airlines have used a connection to the customer as a way to develop a successful brand, and carry the message of that brand through advertising.

“JetBlue and Continental are talking about things that resonate with travelers,” says Dr. Robert Passikoff, CEO of marketing consultancy BrandKeys. “Most airlines don’t know what customers want, and they don’t even want to make the investment to know what they want. JetBlue especially has done that and is succeeding.”

JetBlue is a two-year-old venture that has put a successful new spin on the concept of budget travel. While the rest of the industry was getting whacked in June, JetBlue posted a 100% revenue jump. Past ventures in this area such as 1980’s icons People’s Express and Laker Air were able to offer cut-rate fares by cutting back on amenities and infrastructure. The result, at first, was successful. Then passengers grew tired of the crowded planes and missed arrival times. JetBlue has taken a different tactic. Its fares are low, but not rock bottom. And it has spent money where customers told them to spend money. The planes are new, plush and comfortable. In-flight attendants have sharp uniforms and a crisp, businesslike manner. Bad airplane food has been traded for gourmet snacks. In its advertising, JetBlue has focused on the customer experience on the plane while its competitors are stuck on reliability, security and on-time arrivals. Those attributes may not be the ones that sell an airline in these times.

“Give all the credit to JetBlue,” says Dr. Alan Bender, a professor of airline marketing at Embry Riddle Aeronautical College. “One of the things this business is finding out is that low fares alone won’t get it done. The big airlines operate on the game called ‘tie you lose.’ That means if you as a small carrier drop your prices, they will too. But the business needs to take a look at that approach. Cheap can be matched. A distinct product cannot be matched.”

Bender says advertising and marketing are more important than ever for airline brands. In fact, he believes the airline business is entering an unprecedented period of change that will require radical reworking of business models and ad approaches for American, United, Delta and the other big national carriers. That unprecedented environment is driven by three factors. The first is the economy, which has led business fliers to look for cheaper fares and cut down on overall travel. The second is the security factor, which has made getting on a place a time consuming, anxiety-ridden hassle. The third is the price war that has decreased revenues.

This triple whammy may not drive airlines out of business, but it will force them to focus advertising more on the in-flight experience and less on the tried and true elements of arrival times and “old guard” reliability.