Opportunity:
On June 26, 2018, Forbes reported that one out of every seven travelers has missed their flights due to long airport security lines.
Capital One conducted a survey in June of 2018. The survey shows millennials (ages 20-37) are the age group most affected by backups at security checkpoints. 14 percent of all people surveyed missed their flights and 28 percent of millennials surveyed say they weren't able to board on time and were left behind.
The forces that allow this to occur are a lack of being notified or dealing with additional distractions that are unpredictable. The window of opportunity is open until these factors are resolved.
- There is a satisfactory resolution to this need. My interviewees mostly stated that they believe notifications throughout the day of their trip and reminders of updates on how security checkpoints are going will benefit them. My interviewees also felt that it is important to have a free system that caters to these needs. Usually, plane tickets themselves are already expensive. My product will help cater to my targeted audience because no one is satisfied just yet.
Potential customers: millennials who travel often (the majority being men and women aged 20-37) who are concerned about TSA lines
Innovation:
For individuals with a limited budget, they would be just in luck. My app will be offered for users at no cost on apple and android app stores. The app would be offered directly after travelers book their flights online. My profit will come from every airline ticket booked.
For businesses, I will be partnering with airline brands including Ameican Airlines, Delta Airlines, Frontier Airlines, Spirit Airlines, Air Canada, and more. With my partnership, these airlines would send me 25% of each ticket book and linked to my app download. My app will ask passengers for their confirmation codes to track their departure and arrival dates and times.
Initial profits will come from sponsors and donors that I know personally including Lakesha Brown, CCO for American Airlines, the University of Florida's College of Journalism and Communications Dean McFarlin, and more. I would need about 15,000 to kickstart the designing and promotion of my app: FlyFrenzy.
Venture Concept:
Individuals will buy my product if they are concerned with missing flights because of backed up and unpredictable TSA lines.
Businesses will buy my product to demonstrate corporate social responsibility.
Airlines need to be able to cater to the concerns of their stakeholders, and those stakeholders include travelers who book tickets. I share the same target audience of all airlines around the country. Our audience, frequent millennial travelers, typically have the concern of missing flights and not receiving a refund all because they were held up in a TSA line. While TSA deals with governmental entities, there is no way to speed up the security process, but my app will leverage companies and show that they want their consumers to save their money and not miss a flight again.
Besides time clock manufacturers, there are no major competitors. I've not seen any advertisement for TSA prevention
Price points: I will be mainly charging the airlines 25% for each ticket purchased
& traveler that downloads my app.
Distribution: I will begin distributing my app through airlines social media pages. For example, my exclusive partnership will allow FlyFrenzy to be placed on the American Airlines' official Instagram and Twitter pages. This will not only bring exposure to my new brand but show that American, as one of many airlines, cares about their passengers catching flights on time. Promotional material will include download information, a website and a hotline number for customers to call.
Customer Service: Since the company is built upon care for other travelers, employees will be required to work full time and have access to a hotline number. Travelers who see the promotional material for FlyFrenzy will be able to immediately reach a representative and learn about how the app works and how it will benefit them.
Location: Online on all app stores.
Packaging: In this case, the packaging will be digital. It will show that we are sustainable and want to make it easy for travelers to learn how our app can benefit them.
Employees: I’m estimating around 40 employees, to begin with.
Hey Gernise,
ReplyDeleteYou did a great job breaking down each portion for this report. My only critical comment would be your price point. To charge the airlines 25% and the travler seems a bit much. For instance, imagine a flight to China, which is roughly around $950. I do not think airlines would be willing to give up roughly $237.50. Instead I would suggest a lower percentage intake or have a basic flat rate. This would encourage more travelers and airlines to want to use your business. Overall, great job!
Gernise,
ReplyDeleteI really like how you broke everything down and spoke about each element individually. I do agree with Megan's comment about the 25% being a little too much. I see the idea you have and I believe it works very well but I would just decrease the percentage by about 10 % at least. Smaller domestic flights might be fine at 25% but international ones that go into the thousands can really run up a lot of lost money. You want all your airlines to be happy as well as your customers because it all goes hand and hand. Once again awesome post and great idea!