Digitisation Fuelling the Rapid Growth of Low-Cost Carriers like Cebu Pacific in Asia

09/18/2023

You get what you pay for - it's safe to say (most) travellers want to reach their destinations quickly and economically without any frills. Cebu Pacific Air, the Philippines’ leading low-cost carrier (LCC), is dominating the domestic travel market in the Philippines with a 57% market share to meet the various demands of passengers with short-haul routes.

By offering the lowest possible airfare prices among their full-service airline competitors, LCCs are reshaping their interaction with their customers to enhance their travel experience. With modern travellers expecting to customize their journey according to their preferences, data driven insights plays an increasingly pivotal role in driving airline profitability through ancillary sales. Power to the people - paying for only what they value.

Michelle Eve de Guzman, Marketing Director at Cebu Air, a seasoned professional with 14 years of experience in Cebu Pacific Air and the aviation industry, speaks to us about AI technology for travel operations, such as their chatbot, new revenue models, new routes, and capacity.


“When it comes to the resurgence of travel demand, we’re very excited – digitisation is very important for low-cost carriers.”

She covers:

  • Digitalization in ensuring that content is more targeted to each person’s interests and data analytics in ensuring that Cebu Air knows their customers’ priorities.
  • Integration of AI in seamless customer experience (such as in the chatbot to ensure accurate and quick responses) and communications.
  • Services that customers want, such as added flexibility for cancelled flights post-pandemic.
  • Additional flights to support demand, while working with National Tourism Board partners to facilitate these strategic decisions.

Digitalisation can easily create customer experience and accessibility for low-cost carriers, providing a deeper understanding on travellers’ patterns and behaviours on a budget. Want to know how? Watch the video now!

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