One of SAS’s strategic priorities is to win Scandinavia’s frequent travelers. By focus¬ing on these customers, we develop our product and our network — which benefits all of our customers. We define frequent travelers as people who take five or more return flights per year. Altogether, they represent around 60–70% of the value of all flights within Scandinavia.
- See themselves as experienced travelers — traveling is part of their lifestyle.
- Like to be on the move — it energizes them.
- Like to fly, this means time to themselves — time to relax and reflect.
- Are early adopters — test new things before others and keep up-to-date with the latest trends.
- Use the internet and social media to find new travel ideas and inspiration.
- Make active choices to promote sustainable development.
SAS IS WITH THE CUSTOMER THROUGHOUT THE TRAVEL CHAIN
By continually developing our customer offering, we make life easier for those who travel frequently to, from and within Scandinavia. Over the year, we have strengthened our offering across the travel chain.
Frequent travelers take trips for business purposes and for leisure. Regardless of the reason for traveling, frequent travelers appreciate a reliable, smooth travel experience in which they feel that we, as an airline, value their time. We know that customers value an attractive network, reliability in terms of high punctual¬ity and regularity, and that we look after them when the unexpected occurs.
The most frequent travelers are also the people with the greatest demands on their travel experience. That is why SAS continually invests in improving and adapting our offering to en¬sure that it meets customers’ expectations. For example, invest¬ments in the new digital platform will gradually promote an improved travel experience.
To meet the demand from frequent travelers for smooth, easy journeys, we have further developed the popular SAS Go and SAS Plus service concepts, as well as SAS Go Light and SAS Plus Saver.
We have also launched SAS Go Light to meet customer demands for a simpler, baggage-free concept.
SAS offers the most complete network with frequent departures and smooth journeys to, from and within Scandinavia. At our primary airports in Scandinavia, SAS accounts for around 45% of all departures.
As demand from our customers fluctuates considerably de¬pending on the season, we have increased the seasonal adjust¬ments to our route network.
Increased digitalization provides SAS with additional automation opportunities for the purpose of improving customer experience; we make their journey easier by offering self check-in together with service personnel who meet custom¬ers in the departure hall.
As one of the few scheduled airlines in Europe, SAS now offers travelers in SAS Go the possibility of pre-ordering meals for their journey.
We also offer the possibility of packaging travel and hotels in their booking via our website.
To further adapt our product offering and increase its relevance for our passengers, we have also invested over the last few years in SAS lounges in Scandinavia as well as upgraded our international lounges in New York, Chicago, and Paris. We also launched a completely new lounge in Oslo. It is an experience lounge where we offer amenities, such as a gym, an innovation hub, a light room, a café with a barista and sever¬al other services.
Our customers prioritize punctuality, high regularity, and SAS looking after them in the event flight irregularity and delays can¬not be avoided. In 2016/2017, SAS’s punctuality totaled 83.6%, and SAS was the sixth most punctual airline in Europe for the 2017 calendar year.
In May 2017, to meet the wishes of our primary target group, we launched New Nordic by SAS, a new and innovative food and drink concept where we focus on functionality and locally produced, high quality ingredients as well as on more and improved choices.
As part of efforts to improve the travel experience, we are continuing to invest in our aircraft fleet and has ordered 80 Airbus A320neo aircraft with delivery from 2016 to 2023. This order means SAS for the first time will have a single-type fleet by 2023 that consists of the market’s most efficient short- and medium-haul aircraft in terms of cost and environment.
We have also started upgrading our existing aircraft with the new cabin interiors and in 2018, we will have high-speed WiFi on our Airbus 320s and Boeing 737s installed.
POST-FLIGHT AND TRAVEL
Between journeys, we continuously communicate with our EuroBonus members. Through increasingly personalized communication, we can create relevant communication and relevant offerings to generate value for our customers.
By investing in new IT systems, we are also working on developing services that enable tracking of checked baggage in order to ensure a positive travel experience.
DEVELOPMENT OF EUROBONUS AND OUR BUSINESS OFFERING
EuroBonus and SAS Business, SAS’s loyalty programs, are the cornerstones in building stronger customer loyalty. At the same time, they differentiate SAS from its competitors. Being a loyal SAS customer should be worthwhile and be notable across the travel chain, from booking until taking a trip.
DEVELOPING LOYALTY PROGRAMS
EuroBonus — which turned 25 in 2017 — in¬creased by 500,000 during the fiscal year, passing the five-mil-lion-member mark. This made EuroBonus Scandinavia’s leading travel-related loyalty program. EuroBonus differentiates us from our competitors; we are therefore developing and renewing the program to increase its attractiveness and relevance while substantially expanding our membership base.
EuroBonus has around 100 partners, such as American Ex¬press, MasterCard, Radisson Blu hotels, Avis, and many others. During 2017, we added the opportunity to earn points directly in shops and restaurants: 520 affiliated shops in Sweden, 530 in Denmark, and 165 in Norway.
Many partners in every industry contribute to making Euro¬Bonus more attractive to its members, while it increases opportunities for members to earn points and EuroBonus flights, hotel stays and other advantages.
SAS also has a business program, SAS Credits, aimed at small and medium-sized businesses. Affiliated companies earn bonuses on business trips that can be used for air travel and ho¬tel stays. The number of member companies in SAS Credits in¬creased by around 20,000 during 2016/2017, which contributed to a positive revenue trend.
STRONG OFFERING TO CORPORATE CUSTOMERS
Corporate customers are an important customer segment for SAS; corporate-agreement customers represent more than one third of our passenger revenue. Through the most customized network in Scandinavia, high reliability and other smart business services such as Travel Pass, SAS has a strong offering for its corporate customers.
During 2016/2017, we launched a new booking service for corporate customers via our website.
STAR ALLIANCE ENHANCES SAS’S GLOBAL NETWORK
SAS is a co-founder of Star Alliance, which celebrated 20 years in May 2017. Membership in Star Alliance offers our travelers many advantages, for example access to lounges and Fast Track as well as the opportunity to earn and use points with mem¬ber companies. In cases where our passengers are impacted by flight irregularities, they can reach their destinations by rebook¬ing on the next available Star Alliance flight.
Apart from Star Alliance, SAS has several supplementary agreements with other airlines that, for example, make it possible to check baggage through to the final destination.
The world is changing and competition within the airline industry is increasing. In light of this, SAS has to adapt its operations to remain competitive. Two clear examples of adaptations are our efficiency enhancement program in Scandinavia, and the fact that we are in full swing with establishing bases in London and Malaga. SAS will thereby be able to compete on the same terms as its competitors