This week's material made me think back to my job at Allegiant Travel Company. The subsidiary Allegiant Air flies into small towns and takes residents to large vacation destinations, but sometimes has to cease service to some markets due to low demand. With regard to strategic communication surrounding these announcements of ceased service, I interviewed former PR Manager Sabrina LoPiccolo.
LoPiccolo said that communicating the withdraw of airline service from a small market begins at the employee level. "It was important that employees knew about changes in service so they could better assist customers or future travelers who may want to use that discontinued route."
It was also important to communicate to anyone financially vested in the company at this time. It is imperative that this particular group understands the reasons for the withdrawal and knows the vision of the future of the company so there is no panic.
Following employees and company shareholders, communication focused on media in the small markets. It was important to craft a message that didn't devalue the company in the eyes of the public or company shareholders.
"Dealing with media in the small markets Allegiant services was a delicate process," LoPiccolo said. She continued to explain that in case the company decided to reconsider service to that particular market, it was important to maintain favorable relationships with the media, as well as perceptions by the publics.
Finally, dealing with any national media is an important step, as this stakeholder will influence continued public perceptions of the company.
In essence, strategic communications at Allegiant starts from the ground up - beginning with employees and shareholders, and ending with media and national press. This helps ensure a smooth exit of airline service from small markets.
Interview with Sabrina LoPiccolo conducted Thursday, February 23.
LoPiccolo describes what seems to be a well-thought out strategy for communication around market withdrawal. Does what she describes fit with what you experienced as an employee? Are their any shortcomings to their strategy?
ReplyDeleteIt seems like strategic ambiguity might be a useful tool in these situations. Did you speak to LoPiccolo about this at all, or do you have any recollections of instances where strategic amibiguity may have been in use?
Jessica,
DeleteStrategic ambiguity was necessary when announcing withdrawal from a particular market, especially when the reason for the withdrawal was due to problems in the city. This obviously is sensitive information and must be carefully portrayed. The same goes for the opposite announcement of new service - at times it was important to withhold what new city would serviced by the airline.
Interesting interview, Shane. One of the tougher communications challenges that an airline has to face is when it decides to stop servicing a market.
ReplyDeleteI used to fly between Orange County and San Jose at least twice a month on American Airlines a few years ago. When they made the decision to cancel the route, there were a lot of hard feelings felt by my colleagues and I towards the airlines. In fact, their lack of communication made us feel like they just didn't care and since then, I do my best to avoid traveling on American Airlines at all.
I believe their lack of communication to the people for which it counted the most - the business travelers - created a significant amount of negative feelings and probably caused them to lose a number of once-loyal travelers like myself.
I'd be interested in hearing how Allegiant communicated this to the consumers and what the overall response was. Was the communications strategically rolled out so that all of the internal stakeholders were aware of the situation and properly informed before the public got wind of the news?
Ken,
DeleteInternal stakeholders were informed prior to the public. The public was notified via media in the local markets by way of a press release.
Thanks Shane for an insight into Allegiant Air. I have used that airlines many times. On more than one occasion I have been taken by surprise when I try to book a flight and discover they no longer fly to the city I am booking a flight for. It sounds like they have a good internal plan for disseminating this information, but it isn't necessarily getting to the public.
ReplyDeleteDid they have a specific plan for the public beyond just employee interface? We all use the internet so much that I can't remember the last time I interfaced on the phone or in person with an agent when I buy a ticket.
I am curious how Allegiant handled feedback from travelers after an announcement like this got out. Did they use the feedback to help in crafting communications in the future?
Kristina,
DeleteIndeed the public was notified beyond the employee interface. In addition to media announcements in the local markets, travel alerts were placed on the company Web site.
Further, consumer feedback was taken into consideration for future communications. More specifically, if feedback was negative it allowed for future communications to directly answer any consumer questions that may arise.
Hi Shane,
ReplyDeleteThat seems to be a great real-life example of strategic ambiguity. However, I am reminded of the "Dell direct" method of communication, as well (which sounds like something that Ken and those who traveled with him would have appreciated with AA).
Do you agree with LoPiccolo's communication strategy? Is there any thing that you would have done differently when communicating with your customers and/or the media?