1. Cut Costs
The Low Cost
Airline Way

2. Digital entrepreneurs
should study the masters
of digital cost cutting,
the low cost airlines:

3. Low cost airlines cut travel agents
out of the booking process, and
sent their customers to the web.
saving 12% of the cost of a flight.

4. They then made their
customers print tickets
out themselves thus
cutting out check-in staff.

5. By refusing to transfer bags from
flight to flight, low cost airlines
then cut costs further.
But this also allowed them to claim
fewer lost bags than full-fare airlines.

6. Then, by flying to secondary, less
congested airports they cut costs
further, but also became the most
punctual airlines in the world.

7. Secondary airports
meant they could also
promise to get leisure
travelers to beautiful
countryside faster.

8. Then the low cost airlines sold
click-thru ads on their websites to
hotels and car hire companies.
Empty space on their websites
became a big profit center.

9. Then they flexed their muscles:
they established that they could
move their flights from airport
to airport on a whim.

10. As a result, the tables turned.
Low cost airlines stopped
paying airports to land. And
regional governments started
paying them to fly tourists in.
$

11. By the early 2000s, low cost airlines
had captured the entire marketing
budget of some tourist boards.
$$$
$$$
$$$
Why spend money on marketing
when government will do it for you?

12. Digital innovation
involves cost cutting.

13. Extract from
Download:
http://bit.ly/mobmania
which im reading
from seat 23b
Presentation design
@jessedee