One of our strategic priorities is to win Scandinavia’s frequent travelers. By focusing on frequent travelers that take five or more roundtrip flights each year, we develop our product and our network – which benefits all our customers.
- See themselves as experienced travelers – traveling and enjoying new experiences is part of their lifestyle.
- Fly for business and leisure purposes – we meet their year- round travel needs.
- Are early adopters that keep up-to-date with the latest trends.
- Want to be in control, acknowledged and taken care of.
- Account for a majority of passenger revenue in Scandinavia.
TOGETHER 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. Frequent travelers take trips for business purposes and for leisure. Regardless of the reason for traveling, frequent travelers appreciate our comprehensive network and the reliable smooth travel experiences we offer – as well as our high standard of customer care. The most frequent travelers are also the people with the greatest demands on their travel experience. This is why SAS continually invests in improving and adapting our offering to ensure it meets and even exceeds customer expectations.
Service concepts to suit everyone
To meet frequent traveler expectations for smooth reliable journeys, we have further developed the popular SAS Go Smart and SAS Plus Pro service concepts, as well as the SAS Go Light and SAS Plus Smart options. These service concepts provide customers with a wide range of options, designed to meet their specific needs.
Upgraded digital customer interface After taking onboard customer feedback we upgraded our website in the fall of 2017, to provide a smoother, easier and more intuitive interface. Customer content is individualized in order to be as relevant as possible, for example with personalized website content offering ancillary products such as in-flight meals when relevant.
Comprehensive network SAS offers the most comprehensive network to, from and within Scandinavia with frequent departures and smooth reliable journeys. At our primary airports in Scandinavia, SAS accounts for around 45% of all departures.
Seasonal route optimization We have optimized our route network throughout the year to better meet fluctuations in customer demand, including 27 new seasonal summer routes during the year. In 2018, our summer quarterly revenue increased by 7.7% compared with the previous year, which was achieved through increased productivity and the seasonal redeployment of larger aircraft to where demand was greatest. This increased our footprint of the growing leisure market.
Improved customer experience Over 80% of SAS passengers with baggage in Scandinavia now use SAS automated self check-in services – to improve the customer experience. Fast Track services through security also continue to be appreciated and we refurbished the Fast Track lanes in Copenhagen during the year. We continued to make investments in SAS lounges, for example by replicating our popular Oslo barista concept in Copenhagen during the year. Other amenities on offer in our various lounges include gym facilities, innovation hubs and light rooms.
Digitalization makes things easier Our apps for smartphones and tablet devices enable customers to book and rebook flights, check in, download boarding cards, check their flight status and much more. This saves time and makes life easier for our customers in both pre-travel and pre-flight.
Carbon offsetting options We have offered carbon offsetting options for our customers since 2005, and the offsetting program today covers almost 4% through investments in third-party renewable energy projects in Asia and Oceania. In FY 2018 we made progress in the following areas:
- Carbon offsetting for youth travelers – we began providing carbon offsetting for all youth travel in April 2018. This has resulted in offsetting of 135,000 tonnes of carbon emissions by the end of the fiscal year.
- Optional carbon offsetting – we are investigating how to improve the usability of offsetting options by integrating them seamlessly into our online booking flow.
New high-speed WiFi A significant development during the year was the launch of high-speed WiFi onboard our Airbus 320s and Boeing 737s. The service has been greatly appreciated by our business and leisure customers alike and enables services such as movie streaming.
New aircraft We added nine brand-new Airbus A320neo aircraft to our fleet during the fiscal year. The modern interiors of the new aircraft have received very positive customer feedback. Airbus A320neo aircraft are also more fuel efficient than previous aircraft and reduce CO2 emissions by around 18%. In addition, we upgraded existing aircraft with new cabin interiors during the year.
Punctuality Our punctuality was 77.7% during 2018 and SAS was the sixth most punctual airline in Europe. Traffic challenges primarily during the summer peak season negatively affected our punctuality.
In-flight menu improvements We further refined our in-flight menu during the year with new Swedish “fika” options to meet the demands of our Nordic consumers. The option to pre-order meals was rolled out to SAS Go travelers – to further enhance their travel experience and promote sustainability by avoiding unnecessary weight and waste. We also introduced more sustainable sandwich packaging that has halved the amount of packaging while incorporating renewable bio-based plastic.
POST-FLIGHT AND TRAVEL
Development of EuroBonus and our business offering EuroBonus, Scandinavia’s strongest loyalty program within travel and experiences with 5.6 million members, is essential for developing our customer relationships, loyalty and profitability. Our new digital platform has enabled us to launch several new services and features to our EuroBonus members, e.g. point sharing features for friends and families, lifetime gold membership for our most devoted travelers and easy-to-use online booking for award trips with EuroBonus points throughout the entire Star Alliance network. In 2019, we will continue to launch new features and travel services to further improve the value proposition and experience for EuroBonus members, as well as to increase the number of travel partners in the program.
Digitalization allows more personalized communication New digital platforms introduced during the year enable us to provide increasingly personalized communication with our EuroBonus members in between journeys. This allows us to create relevant offerings that generate value for our customers.
ADDITIONAL SERVICES AND CAPABILITIES
SAS Growth In 2018, the business unit SAS Growth was established to make us stronger, faster and more innovative with the objective of strengthening our core operations, driving loyalty, capitalizing on untapped potentials within our existing business and creating new revenue streams. The ambition for Growth is to be our second engine in driving revenue beyond our core business of ticket sales, powered by our extensive ecosystem of partners, data, analytics, engaging customer interaction and entrepreneurship.
SAS for Business program In June 2018, SAS developed its business offering by launching the SAS For Business program, which is designed to make it easier for small and medium-sized enterprises (SMEs) to book tickets and benefit from discount immediately at the time of purchase. The program follows dialogue with some of our 64,000 SME customers about the kind of program they would prefer.
Star Alliance enhances the SAS global network SAS is a co-founder of Star Alliance, which offers our travelers advantages such as a global network, access to lounges and Fast Track, and the ability to reach their destinations when affected by flight irregularities by rebooking on the next available Star Alliance flight. Members can also earn and more easily use points with member companies. Star Alliance brings together 28 member airlines, offering more than 18,800 daily departures. Their combined fleet of over 4,700 airplanes flies to more than 1,317 destinations in 193 countries worldwide, making it the largest global airline alliance.
HOW EUROBONUS POINTS WORK
When a EuroBonus member purchases an airline ticket, they receive EuroBonus points. The portion of the airline ticket price representing the value of the EuroBonus points is shown as a liability. Revenue is recognized when travelers use their points, for example for award travel. Sales of EuroBonus points to partners is recognized under “Other revenue” and the assessed cost is shown as a liability.