Flydubai Pricing Strategy

Flydubai Pricing Strategy
Designing a customer-Driven strategy and mix (The 4 P’s: price, place, promotion & product)
Answer the questions related to the particular case. Your answers must be comprehensive and relevant to what you’ve taken in this course.
In 2009, flydubai introduced low-cost air travel to the UAE market for the first time. While low- cost air travel had become well-established in many other countries, it was a new concept in the UAE. In order to be able to offer cheap flights, flydubai had to eliminate as many travel complexities as possible and reduce its operating costs.
Within its first year of operation, flydubai had expanded fast with flights to 21 destinations, and had enjoyed a significantly better performance than the global air transport industry average. Flydubai was projecting steadily increased growth over the next few years.
Many airlines offer special promotions and heavy discounting campaigns during Ramadan. Regional airlines often run high profile campaigns, such as Emirates’ “Fly For Less” concept which includes discounts on many destinations as well as the offer of free accommodation packages for all passengers traveling to or via Dubai. Etihad offers similar deals. More recently European and other international airlines have joined the promotional competition during Ramadan, including British Airways, Lufthansa, Turkish Airlines and others. In 2010 flydubai attempted to make an unbeatable offer, giving all passengers a 100 percent reimbursement of their fare if they traveled during Ramadan—they were given the refund in the form of flydubai tickets to be used by December 2010.
Discussion Questions
1. Describe flydubai’s pricing strategy. How do you evaluate it?
2. Is this business model sustainable?
3. Describe flydubai’s target markets. How price-sensitive are they?
4. How do you evaluate flydubai’s offering in Ramadan? Do you think it is going to be successful given the fierce competition?
5. What challenges do you expect flydubai to face in the near future?
Basically just answering each of the above 5 questions in one or two paragraphs.
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