The Impact of Covid-19 on Marketing Mix and Economics of Airlines

ABSTRACT

The main goal of this paper is to assess the impact of covid-19 on marketing practices and airlines' adaptation to the new business and economic environment. In the first part, we introduce a marketing mix framework and look at the impact of covid-19 on seat capacity and airline operating revenues. In the second part, we determine current marketing strategies using the marketing framework of the 4Ps and its impact on operational changes among full-service network carriers and low-cost carriers. The central theme in advertising and campaigns for full-service network carriers is high hygiene standards and cleanliness of flights, as passengers are concerned with not contracting covid-19 or other viruses during the longer flight routes. Low-cost carriers still focus primarily on the price and convenience to potential customers. Both types of carriers do improve and push out technology changes in terms of mobile apps, improved online check-ins and contactless, touchless kiosks used for airport check-ins. These slight changes increase passengers' comfort, speed up the check-in process and minimize the spread of any viruses. © 2022 IEEE.