Cathay Pacific rebranded into a new business model this week with the launch of “Cathay”, a premium lifestyle brand that offers a wide range of lifestyle products in addition to selling air tickets.
Surviving the pandemic: Aviation Rebranding and Repositioning
In order to survive and thrive during these difficult times, global airlines have had to innovate and pivot their businesses. Many in the industry have transformed from airlines into retail services and adopted an “Amazon concept” by including many businesses under their brand.
In addition to travel product, AirAsia for example now offers a wide variety of lifestyle-focused businesses including food delivery, online groceries, wellness, health, and insurance. The launch of its ASEAN super app in 2020, focused on three main areas, travel, e-commerce, and fintech. As a brand, it has transformed into a lifestyle experience, advising its customers that it is “always searching for new ways to help you move forward in style – to connect you with people, places and experiences that matter.”
AirAsia has successfully rebranded and repositioned itself, reaching new markets in the Asia region when revenue was at its lowest. It’ has expanded its e-commerce offerings to Singapore, asking merchants to join its growing e-commerce delivery platform. Merchants on the ASEAN super app’s e-commerce delivery platforms can leverage AirAsia’s marketing campaigns, driving more traffic to their online stores and increasing sales.
Enhancing Engagement with Customers Beyond Journeys
As Hong Kong has no domestic routes and as Cathay Pacific was heavily hit by the pandemic, its income dropped drastically by 84% last year, resulting in a HK$21.6 billion loss. But thanks to a government-led bailout worth HK$39 billion and the shut down of its sister airline Cathay Dragon, it was able to avoid collapse.
In order to grow much-needed revenue, Cathay Pacific announced this week the launch of “Cathay” its new premium lifestyle brand. In the coming months, “Cathay” will be rolling out a range of new offers in spending, dining, shopping, hotels, and wellness, enabling the airline to engage with its customers beyond their journeys.
“Cathay” The Lifestyle Brand
Cathay Pacific’s strategy for “Cathay” is to make its brand more appealing to customers – that is to be a complete lifestyle experience that benefits its customers through the integration of its offerings, a wider range of products and services, and through better partnerships. The “Cathay” brand will only be available in Hong Kong while the Cathay Pacific brand will continue around the rest of the world. Over time, the Hong Kong-based carrier plans to expand the “Cathay” premium travel lifestyle brand to other markets.
Chief Executive Officer Augustus Tang said:
“Our ability to enter the travel lifestyle space and the success of this strategy is built upon the enduring strength, trust, and respect that Cathay Pacific has established over 75 years of accomplishments, and the hard work and dedication of our people around the world. At the heart of the ‘Cathay’ brand is a celebration of all the best things we love – and have missed – about travel. We are very proud to have been connecting our customers with people, places, and experiences around the world through the joy of travel. ‘Cathay’ reinforces our commitment to engage with our customers in their everyday lives with world-class service. By adding more value and simplicity, we are helping to move them forward in life as per our ‘Move Beyond’ purpose.”
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