British Airways Pricing Strategy

This article discusses the pricing strategy of British Airways and how it uses differentiation pricing to attract different types of consumers. It also explores the promotion methods used by the company, including direct advertising and social media advertising.

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Table of Contents
Table of Contents.............................................................................................................................2
MAIN BODY...................................................................................................................................3
REFERENCES................................................................................................................................5

MAIN BODY
As per the views of Airways (2017) the company British Airways is a flagship airline
carrier which is based in UK and is majorly headquartered in London near its main hub
Heathrow airport. This is the second largest airline in UK based on the fleet size and the number
of passenger carried away. This British Airways fleet consist of Boeing 777s, 787s and the 747s
which offers a collection on the in- flight services. But as per Hanlon (2017) all these services
are integrated with the different and high class technology within the flights. There are many
different types of classes for having ticket in the flights like business, economy, premium
economy and the first class tickets. Also, there are many different services attached with these
tickets and these are depending over the ticket taken by the consumers. These services include
cabins, entertainment screens, beds, main meal courses, extra space, and many other different
services.
Zhao and et.al., (2020) states that the pricing strategy is the most important for the
company to decide because the price is the amount of money being charged by the company
form the consumer against the services being provided to the consumer. The major pricing
strategy being used by the British Airways is the strategy of differentiation pricing. This is a
pricing strategy through which company charges different prices for the different services being
provided by the company. Hence, as per the views of Bertrandie and Zielke, (2019) the major
reason for the use of differentiation pricing is that the company is able to attract more of the
consumer as they provide services of different prices fitting the need and requirement of each
type of consumer is catered by this system of pricing. For instance if a consumer is not having
much money then they can travel in the economy class only and on the other side if the consumer
is having high money then they can go for the first class travelling with the flights of the
company.
In the opinion of Ahire and Pekgün, (2018) another major P is the promotion and this is
important because of the fact that if the promotion will not be good then the company will not be
work appropriately within the market. Thus, for the promotion of the company British Airways
uses the method of direct advertising through television, billboards and the newspaper. The
major reason for company to go for this option is that this assists the company in giving classy
and sophisticated messages for the consumer so that they can assess the product and services
being provided by the company. Also, in against of this Tuten and Solomon (2017) argues that

use of social media advertising can also help the company in managing the marketing and sales
of the company in more effective manner. This is majorly pertaining to the fact that this is the
latest method of marketing the product in the highly competitive environment and this method
will help company in attracting more of the consumers.

REFERENCES
Books and Journals
Ahire, S.L. and Pekgün, P., 2018. Harvest Hope food bank optimizes its promotional strategy to
raise donations using integer programming. Interfaces. 48(4). pp.291-306.
Airways, B., 2017. British Airways. Where we fly.[online] Available at: https://www.
britishairways. com/travel/where-we-fly/public/en_gb/map [Accessed 13 November
2017].
Bertrandie, L. and Zielke, S., 2019. The influence of multi-channel pricing strategy on price
fairness and customer confusion. The International Review of Retail, Distribution and
Consumer Research. 29(5). pp.504-517.
Hanlon, A., 2017. British Airways: a case study in social media management. The Business &
Management Collection.
Tuten, T.L. and Solomon, M.R., 2017. Social media marketing. Sage.
Zhao, Y., and et.al., 2020. Strategic Customer Behavior and Pricing Strategy Based on the
Horizontal Differentiation of Products. Mathematical Problems in Engineering, 2020.