Travel inequality - Bayram Annakov
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This document discusses travel inequality and why some travel startups fail. It notes that according to research, most people only travel 1-2 times per year, while a small percentage of frequent travelers are responsible for a large portion of airline revenue. The document advocates that for startups to be successful, their business models and retention tactics need to target different types of travelers based on frequency, from one-time users to frequent travelers who subscribe. It provides a framework for matching business models and retention strategies to types of travelers based on their trip frequency.
Travel inequality - Bayram Annakov
- 1. “Travel inequality” … or why travel startups fail Bayram Annakov, App in the Air
- 2. Power law in travel %ofrespondents 0 15 30 45 60 Number of trips 0 1-2 3-4 5+ Gallup research, 2015
- 3. Power law in travel US Bureau of Transport Statistics, 2015 flights(M) 0 75 150 225 300 % of population
- 4. “87%of American’s customers fly with the airline only once per year” - Scott Kirby, President, AA “5%of Delta’s passengers give 25% of our revenue” - Tim Mapes, SVP Marketing, Delta Power law in travel
- 5. Impact and tactics Retention tactic Business model 5+ email integration subscription 3-4 geo fencing & frequent updates 1-2 ASO & SMM one-time payment or free with strong viral component0 “family”use case / taxi drivers