Alaska Launches Facebook App ‘FlyingSocial’ to Leverage Social Media Channels
With the increasing buzz about social networking, many companies are thinking of novel ways to monetize this platform. One such way is to capitalize on “social shopping”, and Alaska Airlines (NYSE:ALK) has tapped into this for air travel via a recently launched Facebook app called “FlyingSocial”. The app intends to leverage the benefits of “social travel”, which typically entails sharing travel experiences and information with friends through social networking sites. Alaska hopes this will help generate additional traffic as well as drive engagement and loyalty for customers. Alaska Airlines competes with major US passenger airlines including Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV), American Airlines (NYSE:AMR) and US Airways (NYSE:LCC ).
We have a $68 price estimate for Alaska Airlines, which is about 20% ahead of the current market price.
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Key Features of FlySocial
FlyingSocial allows a Facebook user to book flights at the lowest available fares with Alaska to places where their friends have either traveled or currently live. A whole trip can be planned through the app as it also assists the user in searching and booking hotels and rental cars via Alaska Airlines. The fare information can be sent to a friend or posted on one’s Facebook profile. With FlyingSocial, the shopping process begins on Facebook and ends on the airline’s website.
How Does FlyingSocial Benefit?
With social networking sites witnessing huge traffic, airlines have an opportunity to monetize the phenomenon by making themselves more accessible at the point of demand. This means that while travel plans are being made, discussed and shared on Facebook, the app can actually be a next step in the process by acting as an immediate booking platform with attractive price options for travelers.
FlyingSocial further allows Alaska to better market its best fares and increase visibility as people share their flying information on their profiles. This can aid the airline in boosting passenger volumes and open a new booking channel.
Direct channels help airlines save significant commissions by skipping intermediaries like GDS (Global Distribution System) and online travel agencies. The strategy makes sense in the airline market where there the fierce competition and volatile energy prices make profit margins razor thin for many carriers. Airlines then to keep pace with changing customer behavior to tap additional channels for their sales.
Alaska is also making efforts to tap the mobile channel to attract travelers to directly book through Alaska Airlines rather than on OTA websites (See Alaska Airlines Targets Smartphone Users, Cuts Out OTAs with Mobile App).