Marketing mix – Price

AirAsia is one of the most popular low-cost carriers in Asia. AirAsia has maintained its
position of low pricing and no-frills airlines which the non-essential features have been
removed for keeping the price low to target lower-middle and middle-class section of society
as their target customers. AirAsia adopt anchor pricing that creates a base of price for every
flight to keep its price low. AirAsia also obviously offers promotion that make its services
and tickets at an extremely low price.

For a one-way ticket for flights depart from Kuala Lumpur to Hong Kong on 1 November
2019, the ticket price of AirAsia is RM208.10 for Low Fare ticket. For the same flight,
Malindo offer a higher price for Super Saver plan tickets which is RM279.00. Both of the
ticket is a no-frills economic class flight ticket that charges addition fees for other services.
AirAsia also offers two different bundle which is Value Pack Fare and Premium Flex Fare
who provided more services in an affordable price. The Value pack Fare is value for money
because it only charges RM 83.00 for service such as 20 kg baggage allowance, one meal for
passenger and giving an option to pick a standard seat. In addition, AirAsia offer a Premium
Flex Fare for RM 324.90 to provide travel flexibility that guests wants for a convenient and
fuss-free journey. The price of these two bundles are more affordable compare to Malindo
that offer a price of RM539.00 in total for Value Fare ticket and RM1,019.00 in total for
Flexibility Fare ticket.

Besides, AirAsia offers add-ons to customers for different services such as checked baggage
allowance, seat selection and addition meals. The Low Fare ticket for AirAsia are includes 7
kg of cabin baggage allowance without any addition charges. For a greater weight of cabin
baggage allowance, AirAsia charges fees between RM70.00 to RM 210.00 for 20 Kg to 40
Kg of cabin baggage allowance. It is much cheaper than Malindo because baggage allowance
is no includes for its Low Fare ticket. For extra baggage, Malindo charges RM30 to RM 140
for 5 Kg to 25 Kg of baggage.

In addition, AirAsia offer a selection of seat in different price for customers. A different row
of seat in the aircraft will lead to a different price. Hot seat in the plane is in higher price but
guests can indulge in extra legroom and get priority boarding. For the first 10 row of seat near
the cockpit, the price is RM 41.90 for the first row of seat and RM 32.90 for the Hot Seat in
the second row to the fifth row. The standard seat in the sixth row until the eleventh-row
charges RM11.90. The seat from the twelfth row until the last row are lower in pricing which
the Hot Seat is pricing at RM 28.00 and RM 9.90 for Standard Seat. The customers who
booking a Value Pack ticket select a standard seat for free. The Hot and Standard seat
selection are available for Premium Flex Fare ticket without any charges. For Malindo
Airlines, any selection in seat are charges RM 40.00.

Furthermore, customers can pre-book up to 2 meals per flight at the price of RM 9.00 for
each meal with a complimentary drink either coffee or mineral water. Customers who travel
with an infant will be charges RM50.00 per infant per sector. It also provides wheelchair
services in price of RM 30. In the end, customers can purchase a one-way flight ticket depart
from KL to HK in a minimum price at RM217.00 includes RM 50.00 of Passenger Service
Charge and RM20.00 Malaysia Departure Levy. It is lower than Malindo which need
minimum RM349.00 for a flight to HK. We can come to a conclusion that AirAsia’s price
strategy is great as its prices are less compared to other airlines and moreover it has offer
more benefits