Catch Loyal Customers... LCCs Implement Differentiated Services

As the number of overseas travelers increases, low-cost carriers (LCCs) are competing to differentiate their services to capture loyal customers.

According to data compiled by the Korea Tourism Organization on the 8th, the number of domestic travelers departing abroad last year was 6,554,031, a 436.1% increase compared to the previous year. Especially since November last year, more than one million people have been traveling overseas each month.

With the rise in overseas visitors, LCCs are introducing specialized services. Jeju Air operates 'Sports Membership' and 'Golf Membership,' which offer unlimited free checked baggage services for sports-related equipment. This membership service exempts baggage fees for sports gear such as skis and snowboards or golf equipment without any limit on the number of times for one year. The Golf Membership, launched on January 16, has become popular, with about 400 people signing up within a month.

T'way Air recently launched a subscription service called 'T'way Plus.' Unlike typical airline mileage or point systems, subscribers can immediately use all benefits upon subscription. It offers a total of four products. As a basic benefit, up to 97% of the subscription fee is credited to the T'way-e Card, a payment method exclusively for booking airline tickets. Additionally, it provides free advance seat purchases, discount coupons for domestic and international flights, and priority access to early bird promotions. Starting this month, a new regular promotion called 'Monthly T'way' was also introduced. This monthly promotion runs for a week from the first Monday of each month, allowing consumers to purchase airline tickets at discounted prices.

Air Busan, which launched the electronic library service 'Sky Bookstore' last year, is also receiving positive responses from customers. In January, the cumulative number of loans from Sky Bookstore surpassed 5,000. Since the full-scale service began in June last year, the cumulative number of members has exceeded 3,000. The 'Sky Bookstore' service allows Air Busan members to borrow and read e-books using smart devices such as smartphones and tablets regardless of whether they are flying.

The specialized services of LCCs are seen as efforts to attract consumers in line with the increasing demand for air travel and to survive in the increasingly competitive airline industry. Although airlines faced difficulties and performance declines during the COVID-19 pandemic, all airlines ultimately survived. Furthermore, Eastar Jet is set to resume operations from the 26th, and Fly Gangwon, after launching routes to Japan last year, recently obtained management approval for routes to China, intensifying competition.