春秋LOW-COSTSTRATEGY-原创.doc

B2C business model:B2C is the most important part of ChunQiu Airlines Low-Cost Strategy. 5 years before, most of people are query that how new private airlines develop their own ticket reservation system, but ChunQiu did this successfully. This system established a unique marketing and sales channel, and it makes the low-prices strategy comes true.ChunQiu is the first Airline owns their independence ticket reservation system. It is not like the traditional sales model, the company direct sales ticket online. About 2000 million tickets have been sold at the beginning of the website on-line. In 2010, the company was selling almost 24 billion by B2C. The sales of B2C increasing from 30% to 80% in 2010, it makes ChunQiu become the first B2C airlines. In this airline, customers have to direct buy ticket online by themselves. Even you call the call center of the company ask for buys ticket, the operator will teach you how to buy a ticket online instead of help you buy it.In the official website of ChunQiu, you always can see the 99 yuan special ticket. Its a storm in the industry, and it also becomes the characteristic of this company. Recentely, because of e-commerce, ChunQiu reduce his marketing cost over 69%.Not only had the website, ChunQiu developed the mobile phone terminal services: 3G ChunQiu. This platform has been a clear favorite for their regular customers, the mobile platform sales about 3% of the total ticket sale.Develop self-check-in kiosks and Green ITChunQiu is willing to try any platform and sell their ticket directly. Except online and mobile phone booking system, ChunQiu also developed the self-check-in kiosks in the airport. It is the earliest developer in the industry. The kiosk offer check-in service that customers can select his/her seat and print out his boarding pass. The available languages in the kiosks include English, Traditional Chinese, Simplified Chinese, Japanese, Korean, Dutch, French and German. Customer can check in between 50 minustes and 48 hours prior to his/her flight departure. ChunQiu got the main profit from e-ticket, compare with paper tickets, its save 80% cost from print, transport and save data process, it also is a kind of green IT. This strategy makes paper-less and save money. And also save the money to hire ground staff.Low management costThe company culture is saving cost. The cost includes 40% fuel oil. Since 2008, ChunQiu summarized hundreds of measures about saving oil. ChunQiu optimized the flight height and speeds of flyer. The company analysis the flyers operate detail per day, and strictly regulate the fly behaviors of each flyer. The saving oil measure including control water carrying capacity, in some flight, the water carrying capacity just 1/3 of others. This measure can reduce the planes weight. Otherwise, ChunQius electronic is as less as possible rely on the engine, they use the bridges power. Through the saving oil measures, in 2009, ChunQiu was saving about 1.3 billion.Align with travel agency:ChunQiu travel agency is the leader of the Chinese travel industry. In this industry, the main revenue is from services, and most of customers want the use lowest money buy the best services, so the only way to survive is increase the amount of customer and reduce the cost. All this time, the travel cost take up more than 50% for a travel agencys cost. This restricts there product price. ChunQiu differ from others, the travel agency can bring enough customers to airline, keep the passenger load factor (PLF), reduce the risk of the operation.To concentrate the individual traveler, ChunQiu travel agency promoted the concepts of network tour. For examples, ChunQiu Travel Agency signed a cooperation agreement with Shanxis travel agency, monopoly the local airport. It helps ChunQiu build their area network, improve their scale advantages. The agency contributes a dense network in China, which keeps the airlines customer resources.Rely on their network, sales agency and brand, ChunQiu airline offer different price levels Ticketing Package. The package include plane tickets, hotel room and airport transfer services.Maximize the planes utilization rate:Not like the Southwest Airlines used frequent flight to keep the planes utilization, ChunQiu rely on the remote flight between multiple cities. Generally, the company keeps their plane fly more than 2 hours on the sky compared with other airlines. In Hainan, ChunQius plane flies on the 6 oclock, and in Shanghai they fly behind 8 oclock. Each plan stays a short time on the ground. In Shanghai Hongqiao Airport (SHA), only one flight stay time is 60 minutes, others plane in the company must fly during 30 minutes. To make sure each staff can work efficiency during these 30 minutes, ChunQiu use radar and monitoring their staffs action. Track the time of open port, add oil and food shipping.Charge for value-added services: ChunQiu airline did not offer a membership card. If passengers want claim the baggage in advance, they should pay 50 Yuan, so that the passengers can get the baggage in the cabin door immediately. The payment customers can enjoy prior boarding, deplane, special vehicles services. To reduce the cost, the company must expand auxiliary income. ChunQiu just allows passengers at most bring 15 kg baggage. If you want a bottle of water, see movies, or play TV game on the airplane, you must pay for it. Besides, they sale souvenir on the plane and rent carpet.Recently, Chun