Shuttle product strategy
Canada’s only premier shuttle product
Despite being the market leader in Canada since its introduction in 1972, the Canada’s only premier shuttle product had been atrophying for several years; notably between Toronto (YYZ) and Montreal (YUL) – Canada’s two largest cities. Causes were attributed to:
- Several new competitors entering the market (2007-2008); including an all turbo-prop outfit uniquely flying in/out of Toronto’s new downtown airport (ytz)
- An established LCC competitor ramping up their schedule and instituting consistent, aggressive pricing (2007)
- Self-inflicted deterioration vis-à-vis a stale product offering, essentially unchanged for ~6 years
Project requirements:
- Assessment/verification of key drivers of customer loyalty; and identification of corresponding product specs & customer service touchpoints (requiring increased focus, budget or other resources).
- Financial analysis (costs vs. projected benefit) of recommended product and/or service enhancements.
- Updated brand & identity documentation (for planned product refreshment & relaunch of the Canada’s only premier shuttle product brand).
Project undertakings:
- In depth competitive analysis (product, pricing, scheduling) of current & new market entrants.
- Primary customer research to explore brand perceptions; and to determine/verify key attributes driving customer (dis)loyalty.
- Brand health assessment; and a branding/logo audit (print, airport, inflight, communications).
- Financial (costs) assessment for enhanced product & service recommendations; and % share/revenue modelling.
Project outcomes:
- Brand re-launch recommended to boost market share and profitability:
- Need for unrelenting focus on on-time dept, arrivals and baggage delivery. Additional opportunity also with improved focus on other select ‘traditional’ shuttle product/service features (e.g. close-in check-in & dept gate areas).
- Customer research demonstrated greater loyalty could be garnered via airport-product improvements (versus inflight-product). Previously allocated budget increases for inflight-product were substantially diverted to airport-product instead.
- Relaxation of fare-level benefits allowing for more same-day (no-charge) standbys, and more flexibile non same-day standby (for certain fare segments); plus simplification of several pricing structures.
- Employee engagement was critical; their engagement however would require that a ‘truely enhanced’ Canada’s only premier shuttle product be launched.
ROI:
- Toronto (YYZ) to Montreal (YUL) route became profitable within six months (~+5 point share increase).
- Product investment recouped in <4 months
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