British Airways Changes in Marketing Strategies during the COVID-19 Outbreak

British Airways: Changes in Marketing Strategies during the COVID-19 Outbreak
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1. Introduction
The marketing strategies experienced a paradigm shift in recent times during the COVID-19 outbreak. Globally, the consumer markets exhibited behavioral transformations and changes in servicescapes. In the United Kingdom (UK), reputed brands revised the marketing mix to adopt trends evolving in the pandemic. Table 1 denotes the changes in the financial vulnerability in the airline industry incurred during the pandemic. The airline industry reported financial losses during the COVID-19 outbreak caused by lockdowns and other regulatory authorities imposed on travelling (Aman & Altass, 2020). This paper aims to investigate the changes that happened in marketing during the pandemic and study the marketing mix strategy used by British Airways for maintaining market share in the local market. The investigation would conclude by recommending post-COVID strategies, allowing British Airways to expand its market share in the local and international markets. British Airways is a reputed airline brand, serving more than 100 years. British Airways promotes cultural diversity and sustainability, operating on the triple bottom line (TBL) concept. Under the leadership of Sean Doyle, the company’s Chief Executive Officer (CEO; See Image 1), British Airways aims to eliminate carbon emissions from the servicescape by 2050 (BA, 2022).
2. Discussion
2.1 Changing Marketing Paradigms
The COVID-19 outbreak in the British market introduced changes in the market dynamics for the airline industry. The airline sector in the UK experienced three fundamental changes in its marketing strategies. First, the marketing tactics focus more on cost minimization than profit maximization while promoting the servicescape. Demand for reliable and sustainable transportation increased during the pandemic among British consumers (Bartle, Lutte & Leuenberger, 2021). However, the social distancing and frequent lockdowns altered servicescape processes for the airline carriers while meeting the demand patterns. Hence, brands such as British Airways are focusing on cost minimization to avoid operational losses while delivering continuous servicescape experiences to the customers during the pandemic. The British airline industry reduced prices for air carriers and tickets while increasing the frequency of travel schedules to mitigate operational costs (Bartle, Lutte & Leuenberger, 2021). The marketing strategies transformed the business model for the British airline industry during the pandemic.
Digitalization is another evolution in the British airline sector during the pandemic. The ‘new normal’ phenomenon and emphasis on social distancing introduced further transformations in the servicescape. Sarkar and Clegg (2021) argued that the airline industry focuses on resilience while adopting the ‘new normal’ culture by strengthening customer travel experiences. Hence, most brands use digital platforms as direct channels to deliver the servicescape. Mobile applications and web pages are the first lines of interaction between brands and customers. Market reports suggest that web traffic increased by 83% for the airline industry during the pandemic (Sarkar & Clegg, 2021). Customers could use mobile applications to select seating preferences and baggage options. The airline industry further included FinTech to offer convenience in making ticket payments. Customers are using FinTech solutions to pay for travel expenses, such as ticketing, baggage options, and other services, making the servicescape experience ready to go (Sarkar & Clegg, 2021). Airline brands, such as British Airways, collectively use digitalization for customer retention and business expansion.
Lastly, sustainability in the servicescape is the new focus of the airline industry while promoting brand value during the pandemic. According to Layton and Domegan (2021), customers exhibited buying behaviors while traveling through different airlines. Customers prefer using airlines with minimal carbon emission and ecology wastage. As a result, most airline brands transformed the supply chain models, and the market campaign focuses on maintaining servicescape relevance in the consumer market during the pandemic. Brands revised the supply chain networks by collaborating with environmentally friendly value chain partners. Besides, most brands, such as British Airways, aim to reduce carbon emissions by making operational and supply chain transformations (Layton & Domegan, 2021; BA, 2022). Brands build subliminal trust with customers by offering sustainability through operational innovations and value chain optimizations. Precisely, the marketing strategies changed for the British airline industry during the pandemic from experiences, convenience, and sustainability perspectives.
2.2 Marketing Mix During the Pandemic
British Airways revised its marketing mix strategy to maintain operational relevance during the pandemic. First, the company made changes in the product or servicescape delivery requirements. British Airways redefined health restrictions for the customers during the pandemic. Before boarding an air carrier, customers must receive vaccination and provide negative COVID-19 test results (BA, 2022a). Additionally, the customers require going into quarantine based on the requirements defined by different jurisdictions. The servicescape benchmarks vary for customers with different requirements of countries. British Airways would deny entertaining customers once fundamental standards are unsatisfactory (BA, 2022a). The pandemic transformed the servicescape requirements offered by British Airways.
British Airways made further changes in the pricing model to meet demands during the pandemic. Currently, British Airways is using a cost-plus pricing strategy to maintain operational profitability under COVID-19 constraints. The company made internal changes by reducing remuneration for cabin crew, engineers, and ground staff by 30% (Light, 2020). British Airways offers customers discounts, promotions, and reduced-priced tickets to meet operational costs through its business model based on internal changes. British Airways further focuses on increasing the frequency of travel schedules to cater more extensive customer base instead of increasing ticket prices (Light, 2020). The overall strategy indicates that the brand uses cost-plus pricing during the pandemic to ensure profitability.
Furthermore, British Airways changed promotional strategies to persuade customers and buying decisions. According to McCabe (2021), British Airways collaborated with ‘Uncommon Creative Studio (UCS),’ a reputed marketing agency in the UK. British Airways introduced a £32 million marketing budget for UCS to revise brand image on digital channels. The company promotes services, promotional offers, and other integrated marketing communication (IMC) ...