IndiGo comes of age: new business class and loyalty programme part of 18th birthday offerings
On 05-Aug-2024, IndiGo celebrated its 18th anniversary by announcing plans to launch a loyalty programme in Sep-2024 and offer business class seating for the first time from Nov-2024.
The two announcements mark major steps in the implementation of a new strategy the LCC embarked on in 2022, as it emerged from the impact of the pandemic, titled: "Towards new heights and across new frontiers".
'India is changing rapidly, and the needs of the Indian consumers are changing rapidly'
Discussing the revised strategy, IndiGo CEO Pieter Elbers, who joined the airline in 2022, stated: "India is changing rapidly, and the needs of the Indian consumers are changing rapidly".
Mr Elbers noted: "There is an ever-growing need for premium travel in India", adding that the "natural evolution" in the aspirations, desires and habits of its customers requires a corresponding evolution and maturation for the airline that happens to coincide with IndiGo reaching its age of majority.
New IndiGoStretch business class product for its A321neos
IndiGo spent its first 18 years exclusively offering economy class seats, but from 14-Nov-2024, the LCC will enter new territory with the launch of IndiGoStretch, its new business class product for its A321neos.
Available initially on the Delhi-Mumbai sector at an introductory price of INR18,018 (USD214.89), IndiGoStretch will be gradually expanded to 12 busy Metro-to-Metro domestic routes by the end of 2025.
IndiGoStretch is a new business class offering that will debut on Delhi-Mumbai but will expand expanded to other Metro-to-Metro domestic routes
The IndiGoStretch business class cabin will feature 12 R5 seats from RECARO Aircraft Seating, to be directly configured on 45 yet to be delivered A321neos by Airbus.
Delivery of these A321neos to IndiGo is scheduled to commence in 4Q2024 and be completed by the end of 2025.
IndiGo A321neos configured with 12 business class seats will feature 208 economy class seats.
According to the CAPA - Centre for Aviation Fleet Database, the LCC's existing A321neos are configured with 232 economy class seats, meaning the move into dual class cabins will result in a loss of 12 seats total for each aircraft.
Given the INR18,018 (USD214.89) fare for a Stretch seat is almost double the fare for an economy class seat on the same Delhi-Mumbai flight, IndiGo's revenue per flight stands to increase despite the loss of 12 seats from the cabin.
Business Class seating accounts for just 3% of system seats in India; less in domestic market
Business class seating accounts for 3% of systemwide seats in India, and just 1.5% of domestic seats.
On the Delhi-Mumbai sector, business class seats are also available with Air India and Vistara, both charging more than IndiGo.
The LCC is the most frequent operator on the route, as is the case with most domestic routes in India, with IndiGo accounting for more than 60% of domestic seats and almost 50% of systemwide seats in India.
India systemwide seating by class for the week commencing 26-Aug-2024
Having secured sufficient seats to equip a sizable number of A321neos with business class cabins, and with the aircraft set to be delivered so soon, IndiGoStretch is poised to make quite an impact on the availability of business class seating on India's busiest domestic routes, fueling and facilitating the growth of business related travel between the country's Tier I cities.
Features of the R5 seat and IndiGoStretch offering include:
- 38in pitch;
- 21.3in width;
- 5in recline;
- PC power and USB-C charging outlets;
- Unique backrest with privacy wings and oversized center console offering storage for small items;
- Tablet holder.
New BluChip loyalty programme will go live in Sep-2024
As recently as Dec-2021, IndiGo was reporting it had no plans to establish a frequent flyer programme, preferring to focus on its co-branded credit card arrangements with various financial institutions.
At a CAPA - Centre for Aviation Asia Aviation & Corporate Travel Summit in Nov-2019, then chief commercial officer Willy Boulter boldly proclaimed the LCC has the "best frequent flyer programme in the world, it's called low fares".
Following the adoption of the "Towards new heights and across new frontiers" strategy in 2022, IndiGo embraced the need for a more traditional approach to rewarding its most frequent flyers, leading to the Sep-2024 launch of IndiGo BluChip, it's new loyalty programme.
IndiGo's new loyalty programme BluChip will launch in Sep-2024
Members will be able to accumulate IndiGo BluChips on every IndiGo flight, based on their spend, with the ability to earn more BluChips when booking directly on the LCC's website and mobile application.
Once earned, IndiGo BluChips never expire for active members, who can also select up to five nominees to redeem the BluChips accumulated by that member on flights. The programme ensures hassle-free redemption on every IndiGo flight up to the last seat available, 365 days of the year.
IndiGo is coming of age in what will be an increasingly competitive Indian market
Time will tell how IndiGo's determination to evolve with its new loyalty programme and business class offerings will be received by customers. The LCC has judged the moment to move into these new spaces carefully, and calibrated its approach to capture those who might be as new to business class travel and frequent flyer rewards as the airline is itself, as well as seasoned business.