*Masks are removed only for photo shoots.
How was JAL able to achieve a first-of-its-kind fare of 12,000 yen per night, per round trip?
The "Airline Subscription Service" is a subscription service formed in partnership with KabuK Style, the operator of the flat-rate accommodation service "HafH," which offers "HafH" members a flat-rate plan of "three round-trip flights for three nights" for just 36,000 yen (※) for a limited period of time.
*A separate monthly membership fee for "HafH" is required.
Nakamura: "The demonstration experiment will run from August 23, 2021 to November 23, 2021. The target routes are 10 routes departing and arriving at Haneda. From north to south, the route is well-balanced, including routes that are strong for business and routes that are strong for tourism."
Nakamura: You can choose the return date up to 14 days after the outbound flight date. In other words, you can stay up to 14 nights. Also, when you make a reservation, you can only choose economy class, but if there are seats available on the day and you pay the difference, you can of course upgrade to class J.
This is the first subscription-style travel product in JAL's history. Subscriptions are a flat-rate service that is often used for content services such as music, videos, books, and manga.
Japan Airlines was in charge of planning this airline subscription service, while JALPAK was responsible for creating travel products specifically for this service.
Deguchi: JALPAK's travel products are available in three types: "JAL Dynamic Packages," where fares vary according to supply and demand; "Package Tours," which are fixed-price tours that use low fares for travel agencies; and "OEM," which are created according to the requests of travel agencies. This subscription was a good fit for "package tours," so we used this as the base for our development.
However, because this was a completely new product even within JALPAK, every department was confused at first and it took time to make adjustments. However, once each department understood their role, things went smoothly, and our experienced members worked hard, so we are relieved that it has finally taken shape."
However, it is possible to earn miles with this service. The percentage that you earn is the same as for "Package Tour" products, and you earn 50% of the regular miles that are proportional to the regular fare.
The difficult situation caused by the COVID-19 pandemic led to the search for a new solution.
The background to starting this "Airline Subscription Service" was the desire to make air travel more familiar to customers and make it easier for them to use. At the same time, Nakamura says that the COVID-19 pandemic has hit the travel industry hard, and the need for a new approach was also what prompted them to start this service.
Nakamura: "In order to welcome many customers back on board while taking thorough measures against infection, we needed to explore new forms of travel and reach new customers. That's when we turned our attention to the subscription business model. When we looked around the travel industry, we found that KabuK Style was already running a subscription service.
Furthermore, when we dug deeper into the theme of new travel, the keyword that emerged was 'new lifestyle.' KabuK Style was an early adopter of this theme, and had established a system for providing a service that could promote a new lifestyle."
Tanaka: "Another deciding factor in this collaboration was that HafH's users are a completely different demographic than JAL. JAL's main customer base is senior executives, while HafH's customers are nomadic workers in their 30s and 40s. This is the generation we wanted to approach in the future."
The three say they hope that this service, in collaboration with HafH, will not only attract new customers, but also lower the psychological hurdles associated with travel and transportation.
In the pilot test, most users were on long-distance routes, and their stays tended to be short.
With the pilot project underway, we are gradually seeing trends among users. For now, Miyakojima has the most users, followed by Naha and Hokkaido. Reservations are filling up first for long-distance routes that offer great value.
Tanaka: "We expected that long-distance routes would be popular, but we've also seen a different trend from our initial prediction. That is the length of the trip. Before the release, we predicted that people would be using it for longer stays as a workation, but in reality, we're seeing a lot of people staying for short periods of time, around two nights and three days. This may be due to the spread of COVID-19."
Once the situation calms down and people are able to travel a little more freely, it's possible that user data will gradually change. By carrying out initiatives like this, they are gaining new insights into customer travel, so they plan to continue keeping a close eye on the results.
The ease of air travel is expected to bring about a change in lifestyle
The current demonstration experiment will run until November 23, 2021. After that, the results will be verified within this fiscal year, and if the usefulness of the air subscription can be clearly confirmed, it is planned to be officially released next fiscal year or later. If that happens, it will create an environment where people can easily fly, and it may lead to the spread of a new style of travel that has never been seen before.
Nakamura: "Until now, the purpose of travel was one thing, such as sightseeing on the weekend or a business trip. However, with these subscription services making it normal to go "multiple times," the purpose of travel may become blurred in a good way. You can go sightseeing or work in the place you want to go now. I hope that lifestyles will become more free and that I can contribute to the realization of a more diverse future."
Tanaka: "Young people's lifestyles are becoming increasingly diverse. If air travel becomes more accessible, the day when travel becomes a part of everyday life may not be so far off."
Deguchi: "It would be great if travel and airplanes became as normal as eating. By walking around different areas, you're sure to encounter more unexpected ways of living and values. I'd be happy if many people could enjoy making new discoveries through this service."
In the future, the company plans to expand routes and attract families.
Although no specific plans have yet been made for how the company will operate once it is fully operational, the three believe that it is important to first expand the number of routes and hotels to give customers more choice.
Nakamura: "HafH users include not only single people, but also couples and families. This time the pilot project was aimed at single people (individuals), but in the future we may consider offering a service for a wider range of people."
If travel to distant places becomes easier in the near future, we can expect that more people will have connections with various regions, which will lead to regional revitalization. It will also make it easier to live a multi-base life, travel between Tokyo and the countryside, and return to one's hometown to care for parents. JAL will continue to take on new challenges with the hope that its "airline subscription service" will be a catalyst for creating new lifestyles.
We'll take you behind the scenes of JAL's work, including inside stories on the introduction of the A350 and the development of in-flight meal menus.
The contents published are accurate at the time of publication and are subject to change.
