Airlines maximize profits through sachet marketing

CEBU, Philippines – The airline revenue management (ARM) that is now adopted by most low-cost airlines in the country is the same sachet marketing strategy now applied by most companies in the Philippines.

Airphil Express marketing head Snooker Jaravilla said the ARM serves well the Philippine market because it is already used to the sachet marketing, or in selling products in small sizes.

The ARM strategy has been used by airlines all over the world. But only in recent years has Philippine airline companies adopted the strategy.

Airline revenue management helps airlines maximize revenue and profits by accurately forecasting future demand, optimizing price plans and optimally allocating capacity, based on passenger price sensitivity as a key driver.

Other airline companies such as Cebu Pacific are also using the ARM, which is why airline fares vary from time to time. 

Jaravilla said that with airline revenue management, Airphil express is able to offer budget one-way fares for as low as P299. One flight of Airphil can have as much as 13 sets of fares due to the ARM.

“The earlier the booking, the better the rates,” he said.

Airphil Express flies to 24 domestic destinations from their Manila and Cebu hubs. Direct flights to and from Manila include Bacolod, Busuanga, Cagayan de Oro, Calbayog, Catarman, Caticlan and Kalibo for Boracay, Cebu, Davao, Iloilo, Legaspi, Masbate, Naga, Ormoc, Puerto Princesa, San Jose Mindoro, Surigao, Tagbilaran and Tuguegarao.

Jaravilla said Airphil offers 15 kilos of free baggage allowance. On the Davao and Cebu routes, Airphil is also accommodating up to 20 kilos of free baggage per passenger. (THE FREEMAN)