The complex airline sector has been revolutionized by the arrival of Vueling Airlines, a company that has proven that “low-tariff” concept is perfectly compatible with quality service, innovation, and the use of new sales channels.

Technical data:

• Company: Vueling Airlines
• Objectives: to become established in the Spanish market with a “low cost + quality” positioning.
• Solution: developing a sales and Marketing strategy that has proven that “flying cheap doesn’t mean flying bad”.

• Results: customer satisfaction rate of 4.46 points out of 5, and a recommendation rate of 99%.

Vueling Airlines is currently, without a doubt, a red-hot, paradigmatic success story in a sector as highly competitive and complex as the airline industry. Founded in 2002 (although it began to operate in 2004), and mainly shared by investment funds (Apax Partners and Hemisphere Investments, which belongs to Grupo Planeta), but with a considerable percentage resting in the hands of the administration team, Vueling Airlines entered the scene, aware that our market’s sensibility to low-cost airlines was especially relevant.

The company bases its winning strategy on a resource and cost optimization model that is very difficult for the competition to equal, based especially on a high level of productivity –airplane usage system, crew optimization, use of lower-cost airports, etc.- and on a direct sales model that has proven to be one of the keys to Vueling Airline’s success. Despite consistent growth through other channels, the airline generates more than 90% of its turnover through the Internet, in a clear example of how the “on-line” channel can be intelligently used and highly profitable.

Flying cheap = Flying well

Vueling’s main Marketing objective consisted of de-associating the idea of “flying cheap = flying bad”, which still lingers in the minds of a good number of consumers. This segment’s real and potential customers know that price is the big advantage, but many of them still associate low-cost airlines with deficiencies in seat sales, bad schedules, lack of on-board meal services, customer service of dubious quality, obsolete planes, or young pilots, to name a few negative attributes. With that situation, the Vueling team knew that a positioning of quality and innovation would be absolutely key to the company’s success.

Thanks to an extremely accurate Marketing Strategy, the company was able to clearly distinguish itself from the above mentioned image. Convinced that “cheap” is not always associated with “bad” in customer’s minds – look at the success of IKEA, H&M or FNAC, to cite a few examples-, the Vueling team knew they would be able to transmit the same perception: low-price can be synonymous with a good experience.

With the mission of distinguishing itself as “flying cheap and flying well”, Vueling has been able to position itself as the company with which: customers can choose their seat –unique to the airline -, they are guaranteed to be free from “overbooking”, they fly in the most modern planes (A320), they land or take off at the most important airports (Barajas, El Prat, Charles De Gaulle...), they enjoy a high rate of punctuality, avoid cancellations, have flexible tickets, and are offered on-board entertainment.

Vueling’s company image, serious, efficient, but at the same time open, transparent, urban, and “cool” has deeply penetrated the minds of consumers, who rate their satisfaction as 4.46 out of 5, and who’s rate of company recommendation is 99%. With these results, it’s not surprising that Vueling Airlines is, according to the Secretary of State of Tourism and Commerce, the airline that showed the most growth in passengers
(+ 400%) and income (+ 500%), over 2005.