A Brand Apart: How Asia’s Airlines Capitalize on Product Differentiation
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APEX Insight: Spurred by a growing demand for air travel in the Asia-Pacific, the number of airlines flying to and from the region is staggering. With so many carriers to choose from, how does an airline stand out?
One of the world’s busiest routes by air is the 110-minute flight between Hong Kong International and Taiwan Taoyuan International airports. Airplanes take off more than 100 times a day between the two hubs. It’s a scenario that echoes all over the Asia-Pacific (APAC) region, whether you’re flying Tokyo-Sapporo, Melbourne-Sydney or Delhi-Mumbai. The airspace over the Asian islands and mainland is flourishing with short-haul flights and young airlines that have launched in the past decade, spurred by a growing middle class with a desire to travel – domestically, throughout Asia and beyond.
With so many options, how does a traveler choose? How does an airline land a booking?
With new distribution capabilities, shopping for airfares is no longer a simple matter of choosing a flight that matches a certain date and time. Travelers are able to compare, side by side, one airline’s amenities against the next. A search for a Singapore-Sydney flight brings up options from British Airways, Qantas, Emirates, Malaysia Airlines, AirAsia, Singapore Airlines and Scoot – a mishmash of low-cost and full-service flag carriers, some allies, some competitors and one subsidiary. With so many options, how does a traveler choose? How does an airline land a booking?
Go Local
“Airlines are increasingly looking to their roots as a source of differentiation,” says Jonny Clark, founder of TheDesignAir, a popular website for airline product news and reviews. “Branding and passenger experience, especially, are now more locally influenced.” Clark gives the example of China Airlines, a Taipei-based carrier that brought Taiwanese culture into the interior of its Airbus A350 XWB through details like a plum blossom motif and persimmon wood veneers, and in business class, a lamp with a dragon’s claw for a base – all a nod to the island’s flora, lush geography and heritage.
Local influences are also seen in Hong Kong Express’ transformation from full-service to low-cost carrier (LCC). Daniel Baron, CEO of LIFT Strategic Design, a Tokyo-based studio specializing in airline brand, cabin design and customer experience development, wanted travelers to think of the airline, which was renamed HK Express in 2013, as the city’s choice carrier. However, his company saw a potential cause for confusion: The HNA Group airline shared terminal space with its sister carrier, Hong Kong Airlines, not to mention the similarity between the airline’s former and current names. “The main task was creating a new LCC brand that communicated both ‘youthful and fun,'” says Baron, “plus ‘Hong Kong’s hometown LCC.'”
Along with a revamped image, HK Express took on new uniforms and cabin interiors. The livery features Hong Kong’s skyline stretched across the aft fuselage in purple, with the airline name in red, exuding “energy” while maintaining “professional.” In keeping with the airline’s roots in Hong Kong, HK Express partnered with the city’s Octopus Card, allowing passengers to pay for onboard purchases with the same card they use to buy snacks at the 7-Eleven or access the rapid transit system. The airline also involved Hong Kongers in a competition to name its five Airbus A320s after a popular style of Cantonese cuisine, dim sum.
Keeping it local also works for Scoot, the low-cost subsidiary of Singapore Airlines that launched in 2011. “We sought to give our fans and the online community a stake in our business by consulting them on subjects such as our brand tagline, ‘Get outta here,’ the name of our aircraft and determining what products to sell on board,” says Leslie Thng, chief commercial officer of Scoot.
Low-Cost Language
Low airfares may be a selling point for LCCs, but with more than 60 in the APAC region, price can’t be the only one. “LCCs are highly competitive in price, but it is not always helpful for raising brand awareness,” says Mio Yamamuro, senior executive vice-president of Vanilla Air, a subsidiary of All Nippon Airways. Perhaps this is why Vanilla Air, established in 2013, has opted for bright and chipper branding – think cyan blue and sunny yellow – and arrived at the cartoon character SpongeBob SquarePants, which has been chosen to help market the airline.
“LCCs are highly competitive in price, but it is not always helpful for raising brand awareness.” – Mio Yamamuro, Vanilla Air
“Asian airlines … are not obsessed with gray and dark blue, the traditional ‘safe’ colors of airlines in North America and Europe,” Baron says. “Asian countries themselves are quite colorful, and airline designs should reflect the fantastic cultural heritage that exists.”
Although not a traditional image of Japanese heritage, “the sponge who lives in a pineapple under the sea” is part of Japan’s cultural zeitgeist. “It is said the character has received a positive response from media critics and achieved popularity with all generations,” Yamamuro says, explaining why the Nickelodeon character is seen throughout the airline’s advertising. In a Washington Post article about the peculiar popularity of SpongeBob in Japan, young women were cited as the country’s top fans, with his cuteness and uniqueness from the standard cast of talking animals being an appeal.
For EVA Air, it’s Hello Kitty; for All Nippon Airways, it was Pokémon. Nok Air, the Thai Airways subsidiary established in 2004, came up with its own bird, of no particular species, that can be spotted fleet-wide. “Nok Air’s irreverent liveries, featuring colorful aircraft and the famous beak, are some of the most recognizable throughout Asia, and while low cost, Nok Air has successfully built a brand that has stuck,” says Clark. Nok Air’s CEO, Patee Sarasin, has also explained that the cartoon-like bird is intended to attract kids, so that they grow up with an affinity for the airline.
“How many low-cost carriers offer in-flight Wi-Fi, in-seat power and in-flight entertainment streamed to passengers’ own devices?” – Leslie Thng, Scoot
Colors, characters and logos help identify an airline, but Scoot emphasizes aircraft and amenities to differentiate its brand of LCC from others. “The wide-body 787 Dreamliner has proven to be a game changer that has allowed Scoot to elevate the LCC travel experience, thereby differentiating Scoot from other LCCs in APAC. How many low-cost carriers offer in-flight Wi-Fi, in-seat power and in-flight entertainment streamed to passengers’ own devices?” Thng asks. “Our young passengers, in particular, have told us how much they enjoy our fleet-wide, fixed-duration, unlimited in-flight Wi-Fi plans, which they are unable to get on other LCCs in the region.”
The Face of Hospitality
For many LCCs, a memorable mascot is not its only feature; they take pride in their services, too. “We hone our quality service to stand out from competitors,” Yamamuro says. “Our customers are delighted with the Japanese spirit of hospitality, called omotenashi … We believe that we can gain repeat customers by treating them with our familiarity and hospitality.”
In an online video that captures how passengers are welcomed on board a Vanilla Air flight, the cabin crew are introduced over the loudspeaker by name, along with the languages they speak. But also included are odd details, such as one flight attendant’s preference for beer and another’s membership in a Japanese archery club. As a result, passengers feel as if they know a little more about the people tending to them, adding another level of personalization to the experience.
“We recognize that the human touch remains the cornerstone of any travel experience,” Thng says of Scoot’s service mentality, “and we strive to deliver that through our warm and exuberant cabin crew, known as Scootees, and their trademark spirit of Scootitude!” A prominent front line is a strategy for an airline that sets itself apart based on service. “Legacy carriers promote product and service above price, and most airlines will opt to showcase … a female cabin crew member,” Clark says of a trend he has observed, unique to APAC carriers.
Dressed in a kebaya with a sarong, Singapore Airlines’ Singapore Girl is a symbol of Asian hospitality, and has been around since the 1970s. The flight attendants undergo a 15-week course on management and service, with special training on the needs of the young, elderly and those with disabilities. One Singapore Girl, Karen Choong Shi Qi, received an APEX Heart Award for assisting a 92-year-old diabetic woman who had injected too much insulin into herself while on a flight. Singapore Girls, as a group, have become so iconic, a waxwork of one stands in Madame Tussauds in London.
Familial Ties
To stay competitive in the APAC region, many legacy carriers are expanding their marketability with subsidiaries that are often complete departures from the main brand. Take Scoot, for example. Thng describes the LCC as using bright and brash ads with cheeky headlines to grab attention, while Singapore Airlines relies on understated details and its legacy of premium service to keep loyal customers.
It’s similar with other sister airlines like Thai Airways and Nok Air, Qantas and Jetstar, or All Nippon Airways’ Peach Aviation and Vanilla Air. Visually, the flag carrier and its subsidiaries have little in common. This makes Cathay Pacific and its recent rebranding of Dragonair into Cathay Dragon an anomaly. Instead of painting the two airlines as separate entities, it has drawn them closer together.
“Cathay Pacific and Cathay Dragon are a combined network,” says Robecta Ma, vice-president, Marketing, Americas, Cathay Pacific. Both airlines have the signature Cathay Pacific look and brushwing logo and reflect contemporary Asia.
“When our customers travel between Cathay Pacific and Cathay Dragon, we want them to have a seamless experience, and our new branding reflects this.” – Robecta Ma, Cathay Pacific
But unlike the other sister airline models, where one is clearly a full-service carrier and the other is low cost, the relationship between Cathay Pacific and Cathay Dragon is more collegial. “Cathay Dragon is a full-service regional airline that offers premium ground and in-flight service,” Ma says. While Cathay Pacific focuses on overseas destinations, Cathay Dragon covers mainland China. “When our customers travel between Cathay Pacific and Cathay Dragon, we want them to have a seamless experience, and our new branding reflects this,” she explains.
Be Different
For a passenger, whether an airline advertises its strong sense of place – indicating an opportunity to sample a more exotic passenger experience – or represents a homecoming with its familiar cabin, food and faces, its message must be obvious. “Meaningful and crystal-clear brand differentiation is critically important,” Baron says. “It’s about designing for the positioning of the airline, and doing that well reaps rewards in the form of loyalty and yield.”
Whether low cost or legacy, branding is important to all carriers. “The Asia-Pacific region is a melting pot of different cultures and influences,” Clark says, “and airlines that are actively looking at points of difference are growing in passenger recognition.”
“A Brand Apart” was originally published in the October/November issue of APEX Experience magazine.