JetStar.com

Introduction
Jetstar Airways is a low cost airline based in Australia. It operates an extensive domestic network as well as some regional and international services. Their overall mission is to provide a consistent low fares to travellers.

Website Purpose

Jetstar has invested in its online capabilities through its website jetstar.com to cater for the new and increased demands following the airline’s recent international expansion. It marks the launch of the biggest commercial airline ever. Its website allows customers to transact in a virtual environment. The B2C website demolishes the traditional concept of a brick and mortar sale environment. Since no real life person is required to deal with prospective patrons face to face, it will decrease the overheads cost.

In addition, the internet provides uniformed information for all patrons which contribute to reduced information asymmetry. The e-commerce concept also decreases intermediaries, and hence able to provide first-hand information for consumers.

Jetstar Airways' setup is necessary as its competitions, eg. Tiger Airways, are also racing to capture the virtual market. With the increasing number of internet users who are looking for fuss free and cheaper alternatives, Jetstar's decision to commerce electronically is unavoidable.

Business Strategy
Jetstar is adopting a cost differentiation strategy. It penetrates into the aviation industry and competes with the big brothers by pricing its tickets competitively. This strategy would allow Jetstar to attract and gain a new market share in the industry, perhaps the younger and less affluence, yet yearning to travel young people. However, the cost difference also means that certain factors have to be left out in the ‘package’. The most prominent factor as compared to other long haul flights is the lack of free set meals on the plane. However, Jetstar has always been flying short hauls, and hence this issue has been seen as insignificant when offsetting the total discount received from the air ticket.

Business Model
Jetstar.com incorporates Business-to-Consumer (B2C) segment in the website as it could be easily identified as Jetstar selling flight tickets to prospective buyers online.

Payment Scheme
JetStar uses electronic-payment by electronic payment cards (credit, debit). Using e-payment reduces transaction cost by 30 to 50 percent compared to off-line payments. It proves to be faster and make it possible to carry out business across geographical boundaries. This has indeed greatly enhanced the possibly of international deals and transactions.

E-payment is important in e-commerce because there is no trade without a payment scheme. In addition, Jetstar.com, providing a good and secured payment system has increases the trust and confident of consumers.

Key characteristics
The website provides a full range of functional online services such as booking of air tickets, secured payment system, as well as contact details for patrons to get in touch with the company. Jetstar.com only accepts credit card payments in the form of VISA and Mastercard. Besides providing a toll-free number to attend to patrons' enquiries, Jetstar's website also lists down a full range of frequently asked questions. These questions would answer patrons' enquiries in an efficient and effective way too.

Other than booking of air tickets, Jetstar.com advertises for the best deals on hotels, car rental, insurance, travel information as well.

They provide hot deals frequently to attract customers. Flights to Bangkok can be as cheap as $8 SGD within the stated travelling period. Not only can they attract people to travel during peak periods, Jetstar.com can make business during non-peak periods using their business strategy.

Design

Jetstar.com is set up based on orange and white as the background. These vibrant colours attract people’s attention and interest them to enter into the website for greater information. The easy to understand hyperlinks and neat layouts allow Jetstar’s viewers to navigate without difficulty.

Strengths
Reserved seating is an added strength to Jetstar as it is currently provided on all routes and being the first Australian airline to allow customers to select their seat upon booking.

Jetstar uses the computerised Aircraft Communication Addressing and Reporting System (ACARS) to maintain their on-time monthly performance close to 100%. This is important as passengers would not want their flight to be delayed and thus affect their planned schedule.

Jetstar has two types of aircraft-Boeing 737-400 and Airbus A320. A typical low-cost carrier only offers a single type of aeroplane so as to reduce training and servicing costs.

Jetstar provides a differentiation in cost by providing three different fare types namely JetSaver, JetFlex and StarClass. If a customer aims for a higher level of privileges, then StarClass will be a suitable choice.

Weaknesses
JetStar may be challenged in terms of minimal leg space for long-hauled flights as compared to the spacious leg space on board Singapore Airlines. In addition, there is no in-flight entertainment and free meals/snacks on-board. Airline does not offer flight connections, baggage transfer or check-in for multiple flights.

Special features
Jetstar.com, unlike many other websites across the internet, provides advertisements spaces for hotel bookings, car rentals, travel insurances as well as travel information for all the destinations that Jetstar flights hauled to. These advertisements could be termed as B2B, where Jetstar is selling advertisements to other companies. This would provide an additional income for the website as well. Furthermore, these advertisements would also value-add the website’s functions by providing a one-stop travel agency for travellers planning their holiday.

The website also allows website visitors to subscribe to its JetMail, which would inform subscribers of any special offers provided by Jetstar through email or mobile phone. This promotion would provide prospective customers a channel to know more about the Jetstar’s services and/or promote rebuying among the past customers.

Jetstar.com also provides a member’s login system. This login system allows members to track the previous flights that they had booked, and retained all required information previously used or saved by members. This retained information would facilitate members in the booking of future flights as time would be saved to re-enter the desired fields. It also serves as a loyalty incentive for members.

An additional feature of Jetstar.com is the online mailing list option which connects well with the customer. It works in a way that when a customer signs up with them, he/she will be able to receive the latest promotions.

Critical analysis
Overall, Jetstar.com, like many other websites across the internet, provides a common B2C commerce environment as well as incorporates B2B in its website either for greater website valuation or for additional revenues.