Cebu Pacific's Candice Iyog talks about fun, low-fare flying

Iyog has been leading the marketing team of CPA since 2003 as director of marketing, and was promoted to VP for marketing and distribution in 2007, successfully launching the airline's 'Go fares' campaign. Prior to joining the airline, she was general manager of Jobstreet.com Philippines.

Who are flying budget airlines, business travellers or tourists?

It's a mix, depending on the destination. We see lots of tourists from North Asia, from Korea and Japan, and China to some extent. Whereas there are more business travellers going to Singapore and Hong Kong.

Are these markets where traditional media works particularly well or not?

All media channels have their own strengths and rules. Traditional media can reach a bigger population and audience, and it’s faster. We use traditional media for big sales event, and are also heavily using online media to reach younger and net-savvy travellers.

How important is pricing as a marketing tactic?

Being the first budget low-cost carrier in the region since 1996, pricing is very important for us. It works to stimulate and create new demand for air travellers.

Pricing is one tool, but we will not able to sustain operations just by low-fare offerings. From the Philippines, CPA flies to 19 destinations in Asia, and is positioning itself as the ‘Most fun airline in the world’

 

For example, the cabin crew sing and dance when they go through the safety instructions Lady Gaga style, or they sing Mariah Carey’s All I want for Christmas, and we have inflight comedians to engage with our customers.

 

Fun, casual and warm is the personality of the airline and Filipinos are also known for that. Unlike other ‘playful’ airline, we don't do it just in the ads.

What sort of destinations are the best fit for budget flight?

People are now flying because they can afford to. They book their air tickets and decide what to do afterwards. By offering such low fares, they are encouraged to explore places they have never been before, which stimulates and drives traffic.

What do you see as being the trend for budget flights in the next five years, and where do you see CPA fitting in? 

Most of the growth in air travel is coming from budget travel. We are not eating into the full-service carriers market, but we are able to create new demand, especially among first-time flyers, students, fresh graduates and young workers.

The next growth area will be our long-haul flight launch at the end of 2013. It is a matter of priority—we focus on shot haul, learn from it and see how we could do to it well first.

Who are your direct competitors in the region?

We see AirAisa as a key competitor, although they have a different business model. They expand and set up hubs in different countries in the region, whereas we focus on the Philippines as the hub,

Many budget airlines choose Hong Kong as their base, eyeing the mainland China market. Is there a change on the sales and marketing front given the recent dispute between China and the Philippines in the South China Sea and Hong Kong's black travel advisory imposed on the country since 2010?

As a destination, the Philippines is the closest tropical destination for a quick weekend break on the beach. It's only one hour and 15 minutes from Hong Kong. 

 

The Hong Kong tourist hostage tragedy that happened in Manila two years ago was very unfortunate and sad, and [the travel advisory] is something that will have to be resolved between the two governments. But as a listed company, we can’t get involved. We will still do what we can to stimulate traffic, we are not ignoring the issue.

People got negative impressions from the news, contrary to what people actually experience in the Philippines, as everyone there speaks English, there is good shopping and food choices, not to mention the beach, forests and nature to explore.

From 9 November, CPA is offering a direct flight from Hong Kong to Iloilo, a UNESCO cultural heritage site in western Philippines.

If you were not doing your marketing job for an airline, what other job would you like to do?

I would to work for 'Sesame Street'; children's' education is important, as they are our future.