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JetBlue Airways Corporation’s Business Strategy Report


JetBlue Airways Corporation is an organization that helps tourists and other people who need to reach other locations. It is an airline that is widely known in the US, as it was founded more than 15 years ago. The company is focused in several cities but headquartered in Long Island City. The destinations are not limited to the US, and the general public has an opportunity to refer to JetBlue when flying to Mexico, the Dominican Republic, the Bahamas and other places (almost 100 destinations).

When entering the market, JetBlue followed the example of similar companies that worked on the domestic level. Thus, they attract the majority of the customers with the help of the reduced prices that are affordable for the majority of Americans. This approach occurs to be really advantageous, as the organization mainly works with the representatives of the middle class, who compile the majority of the population. As a result, many people refer to JetBlue even if they need to move to another state, which is located nearby because driving is tiresome and time-consuming. Such a tendency proves the CEO’s idea to “bring humanity back to air travel and make flying more enjoyable” (JetBlue 2015). Making this kind of traveling easy to approach, the organization makes people believe that it is better than all other opportunities.

Moreover, low-cost tickets attract the tourists, and they refer to JetBlue each time they want to change the location. As a consequence, the customers are sure that the services they gain are decent, and the organization gains more profit. Still, even many years ago the firm realized that the implementation of this one approach will not be enough to show up. To distinguish itself among other American airlines, JetBlue decided to offer in-flight entertainment. The seats on the plane include TVs, and there is Satellite radio. As a result, even the shortest flight leaves unforgettable impressions. The airline tends to provide the customers with the things that its competitors do not have to become the number one in the whole industry. The superiors also emphasize the value of the high-quality services and well-educated employees when describing the success of operations.

The business strategy of JetBlue is not based on some formal statements even though the ideas that the organization follows when serving its clients are rather clear. All operations that allow this airline to achieve success are managed according to the five core values:

  • Safety – traveling business, especially the one connected with transportation, entails a range of risks, which proves that safety should be always considered. JetBlue has high standards and always ensures it;
  • Care – communication plays a vital role in the life of the organization because the members of the crew and personnel interact with each other and the customers daily. Good relations among them reduce the number of issues and make people satisfied with their jobs and services they receive. The company underlines that the balance between work and family should be found;
  • Fun – a good sense of humor makes JetBlue remarkable and allows the clients to enjoy the flight. It also makes the employees enthusiastic and creates a friendly environment;
  • Passion – the employees support shared views and are willing to achieve more. They try to meet the needs of the workers and clients to show excellent performance;
  • Integrity – it is critical, to be honest, reliable and responsible for the organization that wishes to be the best. Moreover, the employees should look for improvement.

This airline also implemented a range of innovative strategies that allowed it to achieve more success. It canceled the meals due to the short duration of the flights, which provided an opportunity to save money and spend them on personal TVs. It also changed the material used on seats from cloth to leather, which made them look more luxurious. The very airplanes are also new; they use less fuel and are safer. The number of routes increases and point-to-point flights dominate.

The main airports are rarely used, which gives more chances to avoid traffic. New technologies are used not only by customers when they buy a ticket but also by the crew when they refer to instructions. JetBlue is a customer-oriented organization, which proves that all implementations are made to make the services better. Thus, JetBlue is a great combination of a low-cost but high-quality airline that follows the best practices of other American companies. The overall design and strategy of the organization led it to success and allowed to occupy its place among the best airlines.

To make the company well-known, its superiors also paid attention to the marketing strategy. The advertisements of this airline can be found online and in the printed form, the TVs, and social media are widely used. JetBlue also changed several slogans trying to find the most attractive one. It also became a partner of sports teams and venues, which allowed them to receive mutual benefit and increase the number of customers.

In the framework of corporate and social responsibility, JetBlue claim that “in the air and on the ground, we’re committed to bettering the lives of our customers, crewmember, and communities — and inspiring others to do the same” (JetBlue 2015). The representatives of the organization claim that when they started operating, their competitors failed to work efficiently according to the customer-orientated approach. That is why they referred to it then and do it even today. JetBlue makes its employees remember about the necessity to deliver high-quality services not only when being in the sky but also when lending and working with them in airports. It supports the idea that the personal lives of the passengers and the crew affects the operations and should become better.

JetBlue believes that they are responsible for inspiring people on an everyday basis. It cooperates with different organizations that agree to become engaged in volunteering and connect the populations served by the organization. Corporate and social responsibility is seen by the company as a constant dedication to underline the things it does to consider the interests of the clients, employees and the values of the organization. It is the determination to enhance the lives of the general public. It is also the maintenance of the technologies that are friendly to the environment and appeal to the majority of the clients and employees making them inspired and happy with what they have. Moreover, JetBlue provides programs for youth.

They are made for children to get to improve their education and fly through reading. The books are delivered by the company and are accessible to low-income communities. JetBlue also encourages its employees to volunteer outside the airport by rewards and recognition. Charity program was managed three years ago, and the teams of crewmembers participated in it. By dint of such actions, more than 15 playgrounds were built. The company also takes care of the environment and is a partner of the Carbonfund. The employees and their communities planted more than 80,000 trees. There is also the JetBlue foundation that deals with the aviation-related education.

Several years ago, the airline was said to cancel the flight but making the customers wait for it for more than 10 hours. Because of the passengers’ dissatisfaction, JetBlue reconsidered its strategy soon and promised to pay financial compensation to the individuals who were not able to leave the city due to the delay and cancel. Various organizations that fight for the customers’ rights even asked the government to consider the issue. The US travel and tourism industry, in which JetBlue works, operates according to the policies that encourage the development of the sphere. National Travel and Tourism Office promotes travel exports, as they generate a great income for the country.

The US wishes to increase the number of tourists and believes that it has a positive influence on job creation and economic growth. The Department of State implemented changes in the visa process making it more streamlined. Still, people who apply for it are to be interviewed and refer to the low-risk community. The Visa Waiver Program is said to help with this and promote traveling to the county. Several countries became the partners of the US, which allowed their population to avoid some problems that may be faced. The visa process is said to be streamlined even more with time. Still, the necessity to obtain a visa and extreme attention to the security of the borders hinder tourism to some degree (National travel and tourism strategy 2012).

The relationship between the price and services

The relationship between the price of the products and services that are delivered by the organization and the amount of them that the customers will buy cannot be denied. As the majority of the firm’s audience is the representatives of the general public who do not have a high income, they tend to prefer the products that cost less and are more affordable. As a result, when a product or service becomes more expensive, fewer people buy it even though they enjoy the quality very much. It means that the relationship between these dimensions is inverse and can be considered vice versa in the same manner (the lower the price is, the greater the number of clients buy the item). The price gets higher, and the number of buyers reduces. This relationship can be found within the demand curve, where it is called the law of demand.

Such a relationship is seen all over the world and is not particular for some populations. It occurs due to the natural behavior of the customer that affects one’s decision making and choice, as a result. The law of demand is observed because the consumer is always not sure that it will be the right decision to spend more money on the product one got used to when it became more expensive. People are afraid that they will not have enough money if they will spend more on the things that can be substituted by the similar ones that belong to another company or ignored at all. The relationship between the price of the products and services presented by the firm and the number of buyers can be shown in such a way:

Price Number of Consumers
$10 100
$20 90
$30 70
$40 40

This relationship may also change when the other factors are not static. Thus, if the income increases, people gain an opportunity to buy this product because they prefer it to the others. Under the same conditions, they may not refer to this product again because used it due to the limits in the budget. The price of substitutes also plays a great role in this case. If the price of the product increases but remains lower than the price of similar products, the number of individuals who will not use it tends to be lower than if there is a cheaper equivalent.

Taking into consideration the law of demand, the organizations that work in the tourism industry are sure to realize that they are likely to lose many clients when altering the prices alone. Still, the sensitivity of each tourist to the changes in prices (elasticity) cannot be predicted without a thorough investigation. It depends on the income of a person and one’s reasons for traveling. If the company is aware of the things that affect the tourists’ sensitivity, it can predict how the price can be changed so that the clients find it acceptable.

The long-term success of the organization in the sphere of tourism depends not only on the high quality of the products and services that it delivers but also on the decent pricing. To set the prices that will maximize the profit, the company should refer to the elasticity of demand (Reece 2009). Using it, the superiors can create a range of strategies that should be followed by the employees to gain more profit. The consideration of the elasticity of demand provides them with the opportunity to investigate the market and find out in what way the alterations in the prices will influence the sales. As a consequence, they will get to know the maximum profit for their businesses.

As it was mentioned earlier, the elasticity of demand in the sphere of tourism is tightly connected with the income of a person and the purpose of one’s trip. Moreover, it relates to the willingness to pay a certain amount of money for the product. If the company is aware of the price elasticity, it can adjust the price, considering the availability of the counterpart, the necessity to buy the product and the time needed to get used to the change.

When setting prices, the firms should follow the optimal pricing guide, which presupposes the reference to elasticity. There are two main ways in which the organization can use this guide to receive greater profit:

  • A small increase in price – it is likely to be considered not critical by the clients, so they will not stop buying the products and services that are provided by the organization. At the same time, the profit gained by the firm will increase;
  • A small decrease in price – the customers will be attracted by the lowered price and will buy the product more often so that the income of the company will increase.

The maximization of the profit attracts the firms and makes them willing to use these guides as often as possible. However, it is crucial to calculate the optimal pricing guide before the implementation of any changes. If it equals to zero, the maximal profit is already received. Even the smallest changes may have an adverse influence on the profit.

The mentioned metric provides an opportunity to use the price elasticity to alter the price of the product. The achievement of the maximum price by dint of the two mentioned methods is an easy way to get the results as soon as possible, but it should not be treated as a panacea and constantly used. The company can also refer to other things such as the customer psychology and the prices that are set by the competitors on the similar products and services, etc. It can even expand and enter a bigger market. In this way, the company can receive more long-lasting profit, which seems to be more advantageous.

Price discrimination is often practiced by different industries today. It presupposes selling a particular product to different groups of clients at diverse prices. Generally, there are three types of the degree of discrimination:

  • The maximum price that each customer will agree to pay;
  • Various prices regarding the quantity of products (a product line is offered);
  • Different prices vary due to the peculiarities of the market segment (Dwyer & Forsyth 2010).

Reverse discrimination also exists. It is seen as the situation when all customers buy the products at the same price, but the organization gained them at different.

The organizations that operate in the travel industry refer to price discrimination as well as others. In this way, they attract consumers and gain more profit. Travel companies manage this practice when working with different market segments. They sell their products and services at the same time and often focus on booking classes. As a rule, some restrictions make sure that a particular group of customers purchases only the product that is made for them. In this way, the ticket for those who travel in business is more expensive than the one for tourists. Making Saturday-night stay obligatory, the firm ensures that they will not buy a cheaper ticket. This example dealt with the one but not the same product. A particular ticket may be sold at different prices also regarding the time of booking.

If an aircraft, for instance, lands in several locations, the company may define how many seats may be purchased by individuals who fly the whole way and those who leave earlier. Coupons may also be used in the tourism industry. They allow the clients to distribute themselves in two groups and the firms to reach both of them. Thus, one would prefer to pay more but to receive all products and services as soon as possible while others are not in a hurry and can spend some time searching for the coupon that can be used to get a discount. Hotels may also make different prices for the same room available for people who travel for business and just for fun. Ticket prices usually vary depending on the age of the clients and the time of the day when considering theaters, museums, and cinemas. The entrance to some sightseeing attractions may cost more for foreigners than for the native.

Mainly, the firms that operate in the sphere of tourism try to use different types of price discrimination. The first one is considered to be the most profitable, but it requires lots of information about the client. Thus, the last two are much easier to manage.

Reference List

Dwyer, L & Forsyth, P 2010, Tourism economics and policy, Channel View Publications, Buffalo.

JetBlue 2015, Corporate and social responsibility, Web.

National travel and tourism strategy 2012, Web.

Reece, W 2009, The economics of tourism, Pentice Hall, Upper Saddle River.

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IvyPanda. (2020, June 13). JetBlue Airways Corporation's Business Strategy. Retrieved from https://ivypanda.com/essays/jetblue-airways-corporations-business-strategy/

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1. IvyPanda. "JetBlue Airways Corporation's Business Strategy." June 13, 2020. https://ivypanda.com/essays/jetblue-airways-corporations-business-strategy/.


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IvyPanda. "JetBlue Airways Corporation's Business Strategy." June 13, 2020. https://ivypanda.com/essays/jetblue-airways-corporations-business-strategy/.

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IvyPanda. 2020. "JetBlue Airways Corporation's Business Strategy." June 13, 2020. https://ivypanda.com/essays/jetblue-airways-corporations-business-strategy/.

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IvyPanda. (2020) 'JetBlue Airways Corporation's Business Strategy'. 13 June.

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