Qantas brand hangs in balance

Qantas brand hangs in balance
By admin


Consumers appeared to remain loyal to Qantas in March despite its February announcement it would slash 5000 jobs, although experts have warned the future of the brand still lurks in the danger zone.

March actually saw a 10% rise in consumer spending with the airline, according to the April Consumer Spending Series report from personal finance site Pocketbook. Meanwhile, rival airline Virgin Australia fared fractionally better – with consumer spending up 11%.

The findings are not dissimilar to those of last month’s Pocketbook report which revealed Qantas’ share of total airline spending had steadily increased from 32% in September 2013 to 35% in February 2014.

“It appears consumer behaviour is difficult to change, and the recent negative publicity around Qantas might have provided the marketing boost it needed to rally the Australian public,” the site’s co-founder Bosco Tan said.

However, last month’s Brand Finance Australia 100 study of the country’s “most powerful and valuable” brands found that, although Qantas remains Australia’s most valuable airline brand, it has slipped further down the overall rankings, from 14th to 17th.

It also showed that Virgin was closing the gap amid the flurry of negative press surrounding the Flying Kangaroo.

“Qantas’ problems are bad news for Brand Australia,” Brand Finance said.

“The national carrier flies the flag for Australia internationally. It is the first point of contact many visitors have with the country and its tailfins advertise Australia’s importance to travellers at airports worldwide.

“If Qantas were to fail, it would have a significant impact on attracting tourism, skilled people and investment to Australia.”

The real issue is whether Qantas can maintain its service levels amid massive redundancies and cost-cutting, according to managing director of brand strategy firm Clear Alan King.

“At the moment, people are prepared to be a little bit more money to fly Qantas because it’s better service,” he told Travel Today.

“But if they are making all these redundancies and stripping all these costs out, I wonder what it’s going to do to the actual service levels on Qantas. At what point does it become not worth the extra money?”

While King acknowledged Qantas’ position as an iconic Australian brand, he stressed that consumers’ emotional loyalty “only extends so far”.

“Australians are quite discerning around functional aspects of service delivery,” he said.

“If they’re not getting perceived value for money and service experience is starting to suffer, they’re not going to pay the premium that Qantas asks them to pay.”

Aussies also have a soft spot for the “underdog”, King added. He highlighted Virgin Australia as an important “challenger brand”.

“There’s a real opportunity for them in the current environment to take Qantas’ customers – while Qantas is stripping out, Virgin is putting in.

“With some clever management from Virgin, they could really take advantage of this.”

However, last month Qantas Domestic chief executive Lyall Strambi insisted that the airline would continue to invest in its customer proposition despite financial pressures on the group.

“It is our commitment to having the best fleet, network, service, lounges and frequent flyer proposition that make the airline the number one choice for business and leisure travel,” he said as he unveiled Qantas' new regional lounge at Broome Airport.

Latest News

  • Tourism

Flight Centre’s Big Red Sale starts today

Flight Centre’s biggest sale has just landed giving Aussies the chance to lock in more affordable holidays close to home and overseas with saving of up to 50 per cent. The Big Red Sale starts today, 9 May, and runs until 5 June 2024. Flight Centre Global Managing Director Andrew Stark said that after the […]

  • Cruise

Aurora Expeditions announces savings for solo travellers

Aurora Expeditions has today announced savings for solo travellers thinking of going north for the summer. Adventurous solo travellers can take advantage of no solo supplements, enjoying a guaranteed private cabin on select departures during Aurora’s Arctic 2024 season with plenty of options available on unforgettable voyages visiting Greenland, Svalbard, Northwest Passage, Iceland and more. […]

  • Aviation
  • Destinations

Etihad and Tourism officials launch free Abu Dhabi Stopover

Etihad Airways and the UAE’s Department of Culture and Tourism – Abu Dhabi have announced the launch of Abu Dhabi Stopover which invites guests flying through to turn their stopover into a free hotel stay and holiday. The Abu Dhabi Stopover, exclusive to Etihad Airways, will enable passengers to enjoy a convenient free stay in […]

  • Destinations

Tropical North Queensland action-packed events calendar for adventure enthusiasts

Sporting enthusiasts and adventure seekers are gearing up for an action-packed year in Tropical North Queensland, with a lineup of sports events and adrenaline-pumping experiences set to take centre stage in 2024. Leading the charge is the highly-anticipated return of the Crankworx World Tour ‘Paradise Edition’ to Cairns from 22-26 May 2024. The mountain biking […]

  • Travel Agents

Disney Days returns with Inside Out 2 showing in Sydney, Brisbane, Melbourne and Auckland

Time is running out for agents to register their Expression of Interest to an exclusive screening of the much-anticipated Disney and Pixar film, Inside Out 2, hosted by Disney Destinations Australia/New Zealand team and partner United Airlines. Places are limited and applications must be in by 17 May. In addition to the screening of the […]

  • Cruise

Aranui Cruises slashes prices with No Single Supplement and Half Price offers

French Polynesian cargo cruise line Aranui Cruises is slashing thousands off its 2025 Austral and Marquesas Islands cruises with an autumn sale offering 50 per cent off the second guest in a twin share room and no single supplement for solo travellers. On sale until June 21, 2024, Aranui’s 12-day roundtrip voyage from Papeete to […]

  • Destinations

Raes on Wategos celebrates 30th birthday and guests get the presents

World famous luxury boutique hotel Raes on Wategos, in Byron Bay, has launched its 30th birthday celebrations with a Raes Indulgent Escape package. Available for all stays of two nights or more, from June to August, the curated package offers an invitation to indulge in a shared celebration of Raes 30th birthday, whilst revelling in […]