5. Bargaining Power of Buyers
• No significant product differentiation. Differences of Air Asia products is offering holiday packages. They offers to providing package including flight tickets, accommodation and travel guide for customer. The important thing is fly to destination which shows the stronger bargaining power of buyers.
• Low switching costs. Bargaining power of buyer strong if costs of switching to other airlines is low. Not only Air Asia operated in Asia. The price offer by competitor not much different. Customer will choose their convenience and flight schedule must fit them best.
• Modern portion of expend buyer on airline. Bargaining power of buyer will strong if customer look for cheaper price.
• Market information will access by customers. IT mostly used by big company and success company in the world. With IT, its allow for international business without boundaries. Information is easy to access by customers only by click. With the online application, Air Asia didn’t have to prepared room for negotiation. Thus, customers had strong bargaining power.