From what I see =)

Niche

It is one of marketiers frontier to explore and dominant niche market, in assumption niche market gives maximum return or profit to organization. Niche market always refers to premium products for high income group, however the trend has slowly changed.

In my observation, taking aviation industry as example it is a vital strategy to carefully have the right pricing and promotion as passenger profile is almost the same as in the previous year. This somehow give airlines a relieve to plan to capture niche market.

Leisure passenger was the niche segment from Middle East to Far East particularly to Malaysia and Thailand in the last five years and that had benefited the visited country and their national airlines. Leisure passengers are willing to pay higher fares, and increase auxiliary revenue from hotel bookings and packages.

However, the trend has slowly changed where leisure passenger traffic has turned from long haul trip to Far East to shorter trip within the GCC countries. This has significantly contributed to passenger’s growth within GCC countries with higher demand from travelers and frequencies from airlines.

In response to the new traveling trend, Far East Airlines have changed their strategy and developed new market niche to support their route to Middle East.

a. All year High volume, low margin niche – Labour traffic from Middle East countries are usually to Manila (Philippines) and Jakarta (Indonesia). The market remains attractive although it offers low yield and additional cost (to offer additional free baggage allowance and waving penalties) to attract passengers.

b. Periodic High volume, high margin niche – Canton Fair is a craze for Middle Eastern traders and business man. The Canton Fairs is in April and October every year, where the exhibition attracts companies to exhibit and establish business connection. Other example is the recent World Cup in South Africa.

c. Periodic High volume, low margin niche – VFR (visiting friend and relative) usually influenced by festive, celebration or school holidays. The demand is usually from expatriate who want to return to home country or visiting their relatives in other country. Example - Australia is one of the famous VFR destination from Lebanon.

d. Reverse Point of sales contributions – Airlines usually manage operation network from different point of sales sales contribution, having say some of Asia’s airlines have encouraged passengers from their country to Middle East country. For example, CZ had many groups inbound to UAE to support inbalance traffic during the Canton Fair in April.

There might be new passengers profile or market trend in Middle East after I left the industry however, the core objective for many Far East airlines is survival to compete with Middle Eastern Airlines who have unlimited resources.