CitizenPlane: solving the airlines dilemma

Charles Rajjou
Jun 19 · 4 min read

TL;DR

  • Because of the huge cost of distributing plane tickets and barriers to entry, many plane seats are simply not on the market.
  • Airlines always have a choice to optimise either their load factor (planes’ fill rate) or revenue per seat, but they can’t do both.
  • Airlines optimising for their margin have empty seats but they can’t slash prices as it would destroy too much revenue.

Two flights, operated by Smartwings and sold by CitizenPlane
  • Compete on both a loyal customer base (sensitive to brand) and opportunistic customers (sensitive to price) by selling the same seat at two different prices simultaneously. All of this without touching the current marketing logic — CitizenPlane doesn’t touch any existing brand since seats are sold under a different name.
  • Create demand on a route: it is possible to drive customer to a specific route if there is a big enough opportunity. This is what happens with Secret Flying for instance. CitizenPlane can be a great way to create an opportunity and driving traffic on an underperforming route, with very limited stock, still without touching brand considerations, etc.
Same seat (2pm), 2 prices

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CitizenPlane

CitizenPlane is an online platform for airlines, charter brokers and tour operators to re-sell their empty planes seats online

Charles Rajjou

Written by

Co-founder & CEO @CitizenPlane

CitizenPlane

CitizenPlane is an online platform for airlines, charter brokers and tour operators to re-sell their empty planes seats online