Viva Air partners with Caravelo to bring airline subscriptions to a post COVID-19 market
Caravelo has rolled out two solutions from their platform for Colombian airline Viva Air, so they can inject liquidity into the company at this critical time, but also prepare and build revenue for the long term.
Barcelona, July 2020 – The COVID-19 pandemic of 2020 has highlighted the reliance airlines have on transactional revenue from customers. With analysts predicting a second wave, airlines need to take a deeper look to diversify their business models and maintain steadier revenue.
As airlines take back to the skies and search for immediate and long-term solutions to inject liquidity, Colombian airline Viva Air has partnered with travel tech company Caravelo to develop Viva Pass Coupon and a brand new subscription product.
Viva Pass Coupon and subscriptions address both short and mid-terms needs
Viva Pass Coupon rewards passengers with a fixed price on their tickets and gives them the convenience to travel without having to find tickets amongst fluctuating prices. Passengers can purchase their coupon and take five flights, saving them up to 50%, or eight flights saving up to 60%. They can redeem their ticket up to three days before departure.
Viva Air is also launching their first subscription model and looking to gain over 15,000 subscribers in the first year. This new model rewards regular flyers with fixed price flights when they pay a set amount each month with either a single or return flight each month.
Viva Air is only the second airline in the region to offer a subscription model and are positioning it as a key element in their recovery and acceleration plan for 2020. Lisa Mota Pinto, Commercial Vice President of the Viva Air Group said, “at Viva we are developing actions to help regain passenger confidence in flying with the same or greater frequency as they did before.”
This new partnership will be crucial for Viva Air to inject cash in the short term and also build up loyal customers in a rocky market over the next year. In 2020, we can already see the way that subscriptions are reshaping airline retailing.
Mexican Airline Volaris launched their flight subscription model over 2 years ago and have already reached 30,000 subscribers. Adding liquidity, lowering customer churn and creating recurring revenue are all benefits seen from this model, boosting both an airline’s income and loyalty. Caravelo’s CEO Iñaki Uriz adds, “accelerating the recovery from COVID-19 is key right now and in unsteady markets, creating a steady stream of revenue for an airline is an attractive solution”.
Caravelo has over 10 years experience maximising airline revenue profits, serving over 20 airlines globally. They bring together their proven track record and knowledge about technology and the aviation industry to optimise the customer experience for airline and travel brands. As well as leveraging on their unique optimization platform, they also create software for flight voucher, subscription and chatbot technology. They understand the complexities and challenges of the industry and are supporting the aviation industry accelerate and safeguard the recovery from COVID-19.
About Viva Air
Air Viva Air is a group of low cost carriers across Latin America with headquarters in Colombia and Peru. Owned by Irelandia Aviation, the group that also owns Ryanair, they are revolutionizing the low price market across the region with the ‘Viva effect’. In 2019, they transported over 6 million passengers, contributing to local employment, the tourism sector and economic growth.
Caravelo: Jess Evans, Product Marketing Specialist, firstname.lastname@example.org
Viva Air: Yurany Galvis, PR Dattis, email@example.com, +57 3122931449