The core product offered by Berjaya Air is air-transport service. Airfare that offered by Berjaya Air is under the economy cabin, to make sure the price is affordable for all customers. Besides that, Berjaya Air provided one way or returns airfare; return airfare fees will be double from one way airfare. As you can see from the appendix, this company provide a latest period for air flight timetable, and this timetable will renew the timetable which pass the period already.
Berjaya Air establishes their airfare price to earn profit and cover the costs. Example of the cost, such as fuel fees, employee’s salary and rental of the airport. Berjaya Air also built their demand from customers. For example, this company offered quite low price for their high quality of service, especially for those infant, Due to our research, price for infant’s airfare not more than ...view middle of the document...
Berjaya Air also needs to cover the semi-variable cost, such as increase the extra flight service to meet the demand that expected.
For value-based pricing strategies, it reduces related-monetary cost with provide high technology aircraft to shorter travelling time of customers, for example, ATR72-500 model of aircraft. Besides that, Berjaya Air put all related information about their service on their official website. To reduce the non-monetary costs, Berjaya Air allowed customers booking their airfare ticket through online and customers don’t need queue for just booking a ticket.
For competitor-based pricing, with that medium-level service provided, it is quite costly, so Berjaya Air needs to forecast the airfare price deeply before providing the service. As a result, airfare price for Berjaya Air will be higher than Air-Asia Airline. Competitors of Berjaya Air are Air-Asia Airline, Firefly, Malaysia Airline and Singapore Airline. But the stronger competitor of Berjaya Air is Firefly, because both of them always monitor the airfare price each other, so airfare price they offered is quite similar. For example, appendix shows that airfare from KL to Langkawi Island is RM423 offered by Berjaya Air; Firefly is RM298; AirAsia is RM183; and MAS is RM100.
Demand of Berjaya Air is price elastic, which means few change in price will lead to big impact on sales. Because airline service got too many competitors, such as MAS and Air Asia, so if Berjaya Air tries to increase the airfare price, customers maybe turn over to the other airline company.
Berjaya Air consist on location of booking or reservation and flexibility of ticket usage that under the nonphysical fences. For location of booking or reservation, from Hua Hin to KL, passenger needs pay 179 USD dollar; but from KL to Hua Hin, passenger pay RM558 from the location. For flexibility of ticket usage, those passengers who cancelled the reservation has been made within 24hours need to pay for 25% from the airfare or not less than MYR 100 per sector for each customers.