Marketing Plan for Island Air:
Ho`olaule`a- A Celebration

Marketing Plane Time Frame: 2014-2015
Submitted by Jason Vellen from Vellux Marketing Consulting: To the Board of Directors of Island Air
Submitted on: 6/7/2014 *

Executive Summary
Island Air is a niche player in the interisland market of Hawaii. It has a long history in the market, and its primary revenue source is achieved through selling tickets on its planes that offer transportation among five islands within Hawaii. It currently has a market share of 10% and an average load factor of 54.5% (percent of seats sold on each flight) Its main competitor is Hawaiian Air who has a market share of over 85% and a much higher load factor on their flights (1).
Island Air does not have the resources to compete directly with Hawaiian Air for all travelers, rather through effective marketing which is outlined in this plan it will draw away travelers from Hawaiian Air thereby increasing its revenue by approximately 20 million dollars a year, or 30 million during the entirety of the marketing campaign. To achieve this increase in revenue both load factor and market share are going to be increased.
The next year is an exciting time for Island Air and presents a great opportunity to implement a marketing plan that will achieve the above revenue growth. Island Air will be receiving brand new highly efficient Bombardier Q-400 planes that will replaced their tired and aging fleet of ATR-72 aircraft. Additionally 2015 will be the 35th anniversary of the airline (2). Both of these events provide synergy for the Ho`olaule`a marketing campaign, which means celebration in Hawaiian. Billboards, market research, twitter and celebratory parties will be utilizing to increase brand recognition and thus revenue for airline. All of this will be achieved with a modest budget of 2.5 million dollar over an 18 timeframe starting in the summer of 2014.

Table of Contents
Make sure to update once final draft is completed for correct page numbers
I. Table of Contents 2
II. Introduction 4
III. Situational Analysis 7
IV. Marketing Planning 18
V. Implementation and Control of Marketing Plan Error! Bookmark not defined.
VI. Summary Error! Bookmark not defined.
VII. Appendix: Financial Analysis Error! Bookmark not defined.
VIII. References Error! Bookmark not defined.

Introduction
A Review of the Marketing Plan:
The marketing plan below is broken down into unique sections. The first section the Introduction encompasses Island Air’s history, its past performance as well as overview of the marketing plan and its expected outcomes. The next section the Situational Analysis provides the SWOT analysis for Island Air’s market, as well as a comparison to its competition. The Marketing Planning section reviews the objectives of the marketing plan, what segments of the population the marketing is targeted towards, and a detailed explanation of Island Air’s product, promotion, distribution and price point strategy. The next section Implementation and Control of the Marketing Plan discusses the responsible parties, timeline and how success or failure of the plan will be measured. Following this section, a brief Summary section will review the reason for action for the marketing plan. The next section Appendix & Financial Analysis provides projections for the costs associated with the marketing plan as well as the revenue returns expected from the implementation of the plan. The final section References provides any outside sources that were used to prepare this marketing plan.
This plan in its entirety is designed to increase Island Air’s revenue by a minimum of 20 million dollars a year or 30 million during the entirety of the marketing plan; to achieve this two interrelated avenues of revenue maximization must occur, firstly load factor (% of seats sold) and market share must increase.
Company History:
Island Air has over a thirty-year history, which began in 1980, throughout its lifetime Island Air has gone through several owners and names. Its first incarnation began in 1980 when, Princeville Airways (now Island Air) was formed. Service was limited with only one route initial in operation; a route between Honolulu and Princeville, on Kauaʻi, that utilized two DHC-6 Twin Otter aircraft (2).
Over the next seven years’ service extended gradually to smaller community destinations on other islands within Hawaii. Even with this increase of destinations, the focus and corresponding revenue stream continued to be on the transport passengers to and from the Princeville Resort. With the increased number of destinations there was a need for more aircraft and by early 1987, Princeville’s fleet had grown to eight Twin Otters.
The next eight years would be years of dramatic change and growth. In 1987, Aloha Airlines’ parent company, Aloha Air group, purchased Princeville Airways and renamed it Aloha Island Air. With new ownerships, new routes and more flights were added to its daily schedule to meet the growing demand for commuter air service to Hawaii’s resort destinations. In 1992, Aloha Island Air changed its name to its current incarnation “Island Air” which allowed for a distinct identity. Island Air remained relatively stable until December 2003, when Aloha Airgroup sold Island Air to Gavarnie Holding, LLC. Once this sale was completed, Island Air became Hawaii’s third independent airline with Hawaiian and Aloha Airlines being the other two. The new owners sought to expand Island Airs capabilities and in March 2006, Island Air received DOT approval to offer large carrier aircraft with over 66 seats. During this period, Island Air continued to expand its services and flew to six airports in Hawaii and to five of the Hawaiian Islands (2).
The latest development in the history of Island Air occurred in February 2013, when Oracle founder Larry Ellison’s company, Ohana Airline Holdings, LLC, purchased Island Air. Prior to the purchase Island Air was in need of a fleet replenishment and, purchased the 64-seat ATR-72 aircraft. These planes were purchased used and have severe reliability issues which resulted in severe delays and flight cancelations in the fall of 2013. Due to the reliability issues with its ATR-72, fleet the decision was made to purchase brand new aircraft from Bombardier Aircraft, the Q400, with expected delivery to occur in fall of 2014 (2).
Past Performance: Over the past, several years Island Air’s revenues and their passenger volumes have been consistent, but are tied to overall to the overall economy and thus tourism. They have consistently held between 6-9% of the total market share for interisland travel. Below is a breakdown of their total seats sold (load factor) as well as their market share for the past three years (1). | 2011 | 2012 | 2013 | Load Factor | 56% | 59% | 53.25% | Market Share | 6.75% | 9% | 8.5% |

For the past several years very little was spent on marketing or branding of Island Air. Since the company has been private for several years, there are not readily available data on exact amounts of money spent on marketing nor data on profitability, but a review of their current marketing strategy indicated beyond their website there is little to none currently being conducted (2). Based upon the lack of marketing and branding being conducted there is an opportunity to increase sales by implementing a marketing plan.
Ho`olaule`a:
Ho`olaule`a is Hawaiian for celebration, and it is the marketing slogan for this marketing plan. This plan revolves around the 35th Anniversary of Island Air. The keys to the marketing plan are the celebration of Island Air’s reliable, comfortable service, which utilizes its new fleet of aircraft, combined with its unique Hawaiian culture, and service. These elements provide for a relaxing, and novel service to the tourists who travel to multiple Hawaiian Island on vacation. By the implementing, the marketing plan detailed below the result will be a 20% increase in load factor and the corresponding revenue and an increase or total market share to a minimum of 11% within 18 months of execution of the marketing plan.
Situational Analysis
The Situational Analysis is broken down by the SWOT (Strength, Weakness, Opportunities, and Threats) analysis below: Internal | StrengthsBranding, Market and Share * 30 year Recognition in Market * Limited Competition only one other major player in market * Only airline to exclusive resort on private island * One media market to reach all local customersResources Available * Influx of cash with new ownership * New planes arriving Fall 2014 * Staff are all employees and not 3rd party agency * Low operating costs at majority of airports servedAffiliates and Networks * Codeshare with United Airlines * Sheraton Resort Package Vacations * Island Air vacations * Owner owns both Island Air and private island resortMultiple Sales Channels * Direct-website, phone, office * Travel agents * Code Share partnersUnique Selling Points * Hawaiian Culture and Theme * Personalized Service and VIP treatment for tourists to private island resort * Frequent Flyer program Cloud 9 | WeaknessesService Issues * Service Meltdown in Fall 2013 * Known for delayed and cancelled flights * Currently old planes, worn interiors and maintenance delays * Uses turboprop planes competition utilizes jet aircraftReputation * Poor reliability reputation in market * Numerous news stories about service issuesCustomer Awareness * Only locals are aware of company * Tourists unaware of brand identity * Costs associated with advertising to largest tourist segments very high-Media Markets on West Coast Customer Base * Dependent upon tourists for over 90% of revenue- Revenue declines during non-tourist season * Local only traffic have strong loyalty to Hawaiian Airlines * Hawaiian airlines offers flights to mainland USA vs Island Air which does not * Majority of customers want lowest price over serviceLow Employee Morale * Several years of operating with little capital injections * Lack of investment in employee training and awards * Relatively low pay compared to rival | Internal | External | OpportunitiesNew and Expansion of Current Markets * Procure smaller fleet and introduce charter services * Inadequate road transport facilities in Hawaii * Flying is only way to get to different islands- no Ferry * Increasing visibility of Hawaii as travel destinations- cross promotion with private island resort * Expansion/Return to markets- Kona, Hilo, Molaki * Purchase jets for mainland serviceNew Funding Available * New Ownership- new planes and equipment * Current planes renovated and clear consistent livery for entire fleet Competition Landscape * Go Airlines left market in Spring and will not returnPartnerships & Joint ventures * Offer feeder services and codeshares to major airlines to utilize under capacity during off-seasons * Cross promotional activities with Private Resort/Island * Promotional activities with car rentals and major hotels * Bid on transportation for state and federal transport of government employeesStaff Training and Development * Offer incentives for customer | ThreatsTourism and Economy * Economic contraction or slowdown * Changes in value of YEN, Yuan, and Australian dollar to US dollar for international tourism= lower international tourism * Oil prices increase Political Changes * Act of Terrorism * Crime Waves in marketClimate * Hurricane * Long term effects of Climate Change- change in climate- droughts, floods * Volcanic eruptions * EarthquakesNew Competitors * Ferry Service * New AirlineLoss of Contracts/Partners * Codeshare agreements-United- loss of feed from mainland * Private Island Resort sold no longer integrated into Island AirKey Employees Leave * COO, CEO are key to turn around and success * May leave for larger airlines= more money, title | External |
Competitor Analysis:
Island Air has only one other competitor in the interisland travel market of Hawaii. That is Hawaiian air. Hawaiian Air has a long history, a loyal following of customers, and offers both interisland travel and travel to the mainland USA and Far East. Below is a comparison between Hawaiian Air and Island Air (3) (4) (5) (6) (1). FACTOR | Island Air | Hawaiian Air | Notes/Drivers | Products | Below | Exceeds | HA-offer first class service | Price | Comparable | Comparable | Air-Fares are consistent across both companies | Quality | Below | Exceeds | Island Air planes are older and show age, once new planes arrive will mitigate | Selection | Below | Exceeds | Hawaiian offers 5X as many seats for Interisland and flights to other both mainland USA, Far East | Service | Comparable | Comparable | Seat pitch, and amenities on Interisland flights the same | Reliability | Exceeds | Below | On time Arrivals for Island Air are 3% higher at 96% vs 93% for Hawaiian | Stability | Good | Exceeds | Both companies have been around for over thirty years, Hawaiian has over an fifty year history | Expertise | Average | Exceeds | Hawaiian Air is considered a major airline by DOT vs regional for Island Air. Hawaiian has infrastructure and expertise of major global airline | Company reputation | Below | Exceeds | Island Air had service meltdowns in Fall 2013. Hawaiian is frequently ranked best US airline by traveler surveys | Location | Comparable | Comparable | Both are based out of Honolulu Airport, and is main hub for each | Appearance | Below | Exceeds | Hawaiian’s fleet is clean, detailed livery, clean/modern terminal in Honolulu. Island Air has old tattered interiors (will be replaced with new planes) terminal in Honolulu is old commuter terminal and shows age |

Sales method | Average | Exceeds | Tickets bought via website, travel agencies, tour companies, 3rd party travel sites (Kayak, Expedia etc.), and code share with other airlines. Hawaiian code shares with 7, vs 1 for Island Air | Advertising | Below | Exceeds | Hawaiian spends in major tourist origin markets- LA, SF, NYC. Island Air has virtually no presence | Fleet | Below | Exceeds | Island Air utilizes propeller planes (even with new fleet) vs all jets for Hawaiian |

Market Share-Interisland/Load Factor (2014 YTD) | 9.5%/54.5 | 87.5%/86.70% | Hawaiian is dominate player in interisland market. They also have a 1/3 higher load factor for their flights even though they offer more seats per flight then Island Air | * Based upon the above comparison it is evident that Hawaiian Air is the main player in the market. They have several competitive advantages: they already control over 85% of the market, have strong relationships with major airlines that then feed their interisland services (seven large airlines, vs one for Island Air), and a robust marketing and branding campaign (3) (2) (1). While Island Air remains, a niche player in the market with the use of a successful marketing strategy Island Air will be able to expand its niche further.
Marketing Planning * The market plan for Island Air capitalizes on its main strengths by celebrating them in conjunction with their thirty-five year anniversary by utilizing the Hawaiian word for celebration, Ho`olaule`a, as the slogan to the campaign. The strengths that will be exploited for the plan are its new fleet and its resulting new cabins, its high on time reliability (5), which are all accomplished with its uniquely Hawaiian cultural flare. * * Marketing Objectives: * The main goal of the Ho`olaule`a marketing plan for Island Air is to increase revenue by a minimum of 20 million dollar a year starting in the summer of 2014. Island Air’s main source of revenue is from selling tickets for interisland travel; over 85% of passengers are nonresidents of Hawaii, either on vacation or business (7) (1). Two interconnected metrics must be improved upon to achieve revenue growth. The first being that the load factor (or percent of seats sold compared to seats available) would increase by 20% from 54.5% to 65% within the 18 months the plan is set to run. The other goal would be more Island Air to increase its market share above the 11% during the same time. * Load Factor is an important metric in the airline industry. It represents the main source of revenue for every airline (8). Island Air already has fixed costs associated with their fleet of planes such as the fuel, maintenance and staff needed to operate them. These costs need to be paid regardless if the plane has a single passenger or the maximum 64 on a flight. * For these reasons, it is imperative that load factor increase as it is clearly tied to increased revenue. By increasing, the load factor by 20% from the current 54.5% to 65.5% revenue would be enhanced by Twenty million dollars a year. This represents an increase in seats sold of 528 seats per day. Since the majority of the fixed costs of operating the airline have been absorbed by the current load factor of 54.5% the potential for 20% increase to add to the profit of the company must not be overlooked. * The other metric of the Ho`olaule`a marketing plan is Island Air marketing share. Market share in this instance is the percent of interisland travelers who utilize Island Air for transport compared to the entire number of passengers who fly interisland. For the first quarter of 2014, Island Air’s market share stood at 10% (1). The number of non-residents of Hawaii who utilize interisland travel has been growing at 2-3% (7) a year over the past several years. For 2014, the total number of passenger seats sold for interisland travel is expected to be 9,800,000 and Island Air is expected to sell 960,000 of those seats or about 10.2, to achieve an 11% market share 1,078,000 seats would need to be sold.
It is important to consider that both load factor and market share are interconnected. If one increases then the other metric should also increase. The ratio of market share to load factor is … thereby a positive move in either of those metrics will equate to more revenue.
Target Market:
The Hawaiian Board of tourism collects large amounts of data on the travelers’ demographics that visit the island. Based upon this information several generalizations about the target market can be surmised.
The average visitor to Hawaii is middle to upper income with an average over 70% of them with incomes over 70,000 a year and 50% with incomes over 100,000. They are also highly educated with 57% of them with Bachelors or higher degree, and 23% with a graduate degree. Their average age is 45, and each visitor will visit 1.22 islands during their trip. A large majority 90.5% of visitors come to Hawaii for pleasure, while the rest are traveling for either business or conventions. Below is the breakdown of the demographics of the visitors of Hawaii as well as the reasons for travel, and what activities they participate once in Hawaii (7).

* * * * * * * * Marketing Mix: * Product: * Island Air’s product, which is transportation from one island to another, is very similar to its competitors Hawaiian Air’s as detailed in the early section of competitor analysis. There is a limited distinction between the two competitor’s offerings, and where there is distinction, Hawaiian Air has the advantage. Because of this, it is not recommended that Island Air could make an argument that their product is superior to the competitors. Rather Island Air should spend its limited resources on promotion of its anniversary and corresponding Ho`olaule`a marketing campaign. * Promotion: * The promotional aspect of the marketing campaign is paramount to the success of the Ho`olaule`a campaign for Island Air, which celebrates the 35th anniversary of Island Air and its acquisition of a brand new fleet. There are limited resources to spend on this campaign and as such, low cost options must be explored. Billboards are low cost and effective marketing strategy (9) (10). * According to a 2009 study by Arbitron 71% of respondents viewed billboards and make purchasing decisions based upon what they viewed (9). Based upon this information two billboards will be placed in each of the top ten markets largest airports depicting Island Air and the Ho`olaule`a campaign are suggested. Additionally smaller posters should be utilized at Honolulu airport at the gates where passengers are arriving from the mainland and overseas. * Another avenue of pursuit is any free local publicity that could be utilized. A large celebration for the new arrival of their planes would be an opportunity for such publicity with a contest where locals can help pick the name of each plane. This would provide media attention and provide good will. Another recommended opportunity for exploitation is an anniversary party at each of the airports that Island Air flies too. Also investing in a tweeter feed with a dedicated staff person that is responsible for notification of press releases, awards, etc. would be another low cost option to increase publicity.
Distribution:
Island Air has three primary modes out selling its seats (product), directly through its website and phone reservation system, through third party travel booking agencies such as Kayak, Orbitz, and finally through travel agencies (2). Below is a graph that depicts by region how passengers decide which airline to book their travel on (7). It is recommended that Island Air continue to offer all three options when it comes to purchasing airline tickets.

Price:
According to a 2009 paper by Ershad Ali of the University of New Zealand the primary driver for selecting an airline for travel is price (8). Customers are very price sensitive and with the ability to compare prices through online booking, sites such as Kayak price sensitivity will continue to be the main driver when choosing Island Air or its competition (11). Island Air like most airlines utilizes complex algorithms to determine price points based upon competitor prices as well as the load factor at the time of booking. A pre-determined number of seats per flight are assigned different price points and as the flight’s seats fill the higher, the remaining seats will cost. A review of average airfares between Island Air and Hawaiian on the routes on which they complete was conducted and it was found that prices between the two are within pennies of each other (6). At this time, the recommendation is for no change in the pricing strategy without further research and understanding into Island Air proprietary pricing algorithm. One clear recommendation that is strongly suggested is that Island Air not increase its prices beyond the average price of Hawaiian Air, doing so would steer passengers away from Island Air and onto Hawaiian Air. Origin | Destination | Average Fare One Way | Number of Flights a Day Island Air Round Trip | Seats Per Trip | Total Seats Available per day by route | Honololou | Kona | 0 | 0 | 64 | 0 | Honololou | Lihue | 69 | 12 | 64 | 768 | Honololou | Lanai | 71 | 10 | 64 | 640 | Honololou | Kahului | 77 | 16 | 64 | 1024 | Kona | Lihue | 0 | 0 | 64 | 0 | Kona | Lanai | 0 | 0 | 64 | 0 | Lihue | Lanai | 135 | 14 | 64 | 896 | Lihue | Kahului | 119 | 14 | 64 | 896 | Lanai | Kahului | 122 | 10 | 64 | 640 | | | | Island Air Price and Frequency Comparison | Island Air Does not Currently Fly | | | | Island Air connecting flight only-Hawaiin Air Direct and Connecting | | | | |

Origin | Destination | Average Fare One Way | Number of Flights a Day Island Air Round Trip | Seats Per Trip | Total Seats Available per day by route | Honololou | Kona | 96 | 40 | 123 | 4920 | Honololou | Lihue | 68 | 40 | 123 | 4920 | Honololou | Lanai | 72 | 4 | 48 | 192 | Honololou | Kahului | 78 | 40 | 123 | 4920 | Kona | Lihue | 200 | 40 | 123 | 4920 | Kona | Lanai | 150 | 4 | 85 | 340 | Kona | Kahului | 99 | 6 | 123 | 738 | Lihue | Lanai | 137 | 4 | 85 | 340 | Lihue | Kahului | 117 | 20 | 123 | 2460 | Lanai | Kahului | 122 | 4 | 48 | 192 | Island Air Does not Currently Fly | | Hawaiian Air | Island Air connecting flight only-Hawaiin Air Direct and Connecting | |

Market Research: There was no direct market research undertaken for this marketing plan. Rather data supplied by the Department of Transportation and the Hawaiian Tourist Commission was utilized to determine trends and demographic breakdowns of potential customers. Island Air should conduct their own market research in regards to brand identity and the overall perceived positive and negative qualities of their brand. Without such knowledge, Island Air would be unable to spend its limited marketing budget prudentially. With this market research, Island Air would be able to direct its marketing towards the most valuable segments of its customer base with precision and accuracy.

V Implementation and Control of Marketing Plan
Any successful marketing plan must have a clear timeline, responsible parties, as well as clear measures for evaluating the success or failure of the plan. The timeline for this plan starts in the summer of 2014 and ends in December of 2015. The timeline closely mirrors important operational and historical milestones that will be achieved during this period. Below is the expected time line.
Billboards in selected markets, and posters for HNL airport
Billboards in selected markets, and posters for HNL airport
1st New Plane Arrives
1st New Plane Arrives
Market Research Begins
Market Research Begins
Market Research End
Market Research End
Adjustments made to marketing campaign based upon result
Adjustments made to marketing campaign based upon result
Campaign Ends
Campaign Ends
Island Air Marketing Time Line

Island Air Marketing Time Line

Anniversary Party for Island Air’s 35th B-day
Anniversary Party for Island Air’s 35th B-day

Party to celebrate new aircraft and naming ceremony
Party to celebrate new aircraft and naming ceremony
Ho`olaule`a Marketing Campaign Starts
Ho`olaule`a Marketing Campaign Starts
Reevaluation of campaign based upon outcomes
Reevaluation of campaign based upon outcomes
Twitter Feed Starts
Twitter Feed Starts

Summer 2014 | Sept 2014 | Winter 2014 | Ongoing | March 2015 | Spring 2015 | Dec 2015 | |

Summer 2014 | Sept 2014 | Winter 2014 | Ongoing | March 2015 | Spring 2015 | Dec 2015 | |

Island Air does not have a Director or VP of Marketing; rather the Vice President of People Services has all marketing related activities under their prevue (2). As such, this person will be the primary person responsible for plan implementation and reevaluation of the plan as time progresses. It is also expected that the CFO will provide metrics to determine if the revenue guidelines of 8 million yearly growth is being met.
VI Summary
Island Air is a niche player in the interisland market of Hawaii. It currently has a market share of 10%. It only has one other competitor in the market, Hawaiian Air, which has over 85% of the market share. It has a relatively long history in the market and will soon have its 35th anniversary.
Due to the relative size small size as compared to its competitor, it is realized that Island Air will not be able to achieve dominance in the market. Rather the plan is for modest revenue growth of 20 million dollars a year. This will be achieved through a combination of increased load factor (percent of seats sold on each flight) and increasing its total market share.
To achieve these goals a modest marketing campaign called Ho`olaule`a, or celebration will be conducted. This campaign revolves around two exciting events in the Island Air that will happen in 2014-2015. First, Island Air will be receiving a fleet of brand new Bombardier Q400 airplanes, which will replace their dated and somewhat unreliable fleet of ATR-72 aircraft. This new fleet will improve reliability and the comfort of the customers. The other major event is the 35th anniversary of Island Air.
Ho`olaule`a will take the synergies of these two events and wrap them into a marking campaign. Due to the limited resources available, the marketing will be directed at vacationers from the top embarkation markets with relatively inexpensive billboards at those locations main airports. Additionally smaller poster sized billboards will be placed in the arrival areas at Honolulu airport. Twitter will be utilized to send out press releases and other relevant information about awards and achievements of Island Air.
The final portion of the campaign is about getting as much free publicity as possible. To achieve this publicity there will be a contest to name the new airplanes in conjunction with a party when each of the new planes arrives. There will also be a party at each of the airports that Island Air serves on their anniversary date in the spring of 2015. Ongoing market research will also be done to help determine how effective the marketing campaign is, with adjustments being made based upon the feedback from the market research.
All of this will be achieved with a very modest budget of 2.5 million dollars for the entirety of the marketing campaign. The expected results will be revenue growth of 20 million per year, or an expected 30 million dollars in revenue growth during the entirety of the campaign, which will run from the summer of 2014 to the end of 2015.
VII Appendix-Financial Analysis Sales Forecast: Island Air on average has 2,638 seats sold per day, with 4,864 available (1). The average airfare for the seats sold is $99 (6). The table below shows all the routes flown by Island Air, their frequency, number of seats available, the number of seats sold, current load factor, the revenue associated with each route, and the potential increase in revenue by increasing the load factor by 20% to 65%. By achieving this goal, revenue would be enhanced by 20 million dollars per fiscal year and 30 million for the entirety of the marketing campaign. Since Island Air has a relatively small market share 10% there is clearly the opportunity to increase its load factor and thus its corresponding market share by capturing more of the interisland traffic onto their planes. Origin | Destination | Average Fare One Way | Number of Flights a Day Island Air Round Trip | Seats Per Trip | Total Seats Available per day by route | System Load Factor | Total Sold Seats | Yearly Revenue | 20% increase load factor Revenue Potential (Load Factor @ 65%) | Honolulu | Lihue | 68 | 12 | 64 | 768 | 54.25% | 417 | $10,341,005 | $12,409,206 | Honolulu | Lanai | 72 | 10 | 64 | 640 | | 347 | $9,124,416 | $10,949,299 | Honolulu | Kahului | 78 | 16 | 64 | 1024 | | 556 | $15,815,654 | $18,978,785 | Lihue | Lanai | 137 | 14 | 64 | 896 | | 486 | $24,306,430 | $29,167,716 | Lihue | Kahului | 117 | 14 | 64 | 896 | | 486 | $20,758,046 | $24,909,656 | Lanai | Kahului | 122 | 10 | 64 | 640 | | 347 | $15,460,816 | $18,552,979 | Total All Destinations | | 4864 | | 2639 | $95,806,368 | $114,967,642 | | | | | | | | | |
Estimates of Marketing Costs:
Below is a table that shows the associated costs of each of the main elements of the marketing campaign for the 18-month period, which the marking plan is designed. Total costs for the plan and subsequent campaign are estimated to be 2.5 million dollars (10) (12). Description | Average Cost Per Unit | Quantity | Total Cost per Item for Entire Campaign | Source of Data Costs | Billboards for Airports at top embarkation points | 35,000 | 20 | $1,050,000 | Fitsmallbusiness.com | Small Billboards/Posters at HNL Airport | 30000 | 15 Gates | $675,000 | Blue Line Media | Twitter Feed | 5,000 | 1 | $5,000 | Portion of staff salary | Naming Ceremony for Aircraft | 70,000 | 5 | $350,000 | Fixed Budgeted Item | Anniversary Party | 85,000 | 5 | $425,000 | | Total Costs For Campaign | | $2,505,000 | |
VIII References

Works Cited
1. Airline Passengers, Flights, Freight and Other Air Traffic Data. Airline Passengers, Flights, Freight and Other Air Traffic Data : US Department of Transportation. US Dept of Transportation. [Online] June 1, 2014. http://www.rita.dot.gov/bts/data_and_statistics/by_mode/airline_and_airports/airline_passengers.html.
2. Island Air. Island Air: History. Island Air. [Online] June 3, 2014. [Cited: June 3, 2014.] http://www.islandair.com/about-us/history/.
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4. FlightStats. (HA) Hawaiian Airlines On-Time Performance Rating. www.flightstats.com. [Online] June 3, 2014. [Cited: June 3, 2014.] http://www.flightstats.com/go/FlightRating/flightRatingByCarrier.do?airlineCode=HA.
5. Flightstats. (WP) Island Air On-Time Performance Rating Modify Rating. www.flightstats.com. [Online] June 3, 2014. [Cited: June 3, 2014.] http://www.flightstats.com/go/FlightRating/flightRatingByCarrier.do?airline=WP.
6. Insights:Flightaware.com. www.flightaware. [Online] June 1, 2014. [Cited: June 3, 2014.] http://flightaware.com/insight/airline/PHNL/PHLI/HAL.
7. Hawaii Department of Business, Economic Development & Tourism. Reports & Data. Department of Business, Economic Development & Tourism. [Online] April 1, 2014. http://dbedt.hawaii.gov/visitor/tourism/.
8. Determinants of Choosing an Airline by a Traveller. Ali, Ershad. Auckland : eSS Working Papers/Industry/Ali, 2007, Vol. 12.
9. Olenski , Steve. Does Outdoor Advertising Still Work?: Forbes.com. www.Forbes.com. [Online] October 10, 2011. [Cited: June 3, 2014.] http://www.forbes.com/sites/marketshare/2011/10/10/does-outdoor-advertising-still-work/.
10. Prosser, Marc. How Much Does a Billboard Cost: fitsmallbusiness.com. Fitsmallbusiness.com. [Online] August 6, 2013. http://fitsmallbusiness.com/how-much-does-billboard-advertising-cost/.
11. Customers Perception of Price, Quality, and Value. Zeithemal, V. A. 22, s.l. : Journal of Marketing, 1988, Vol. 52.
12. Blue Line Media. Airport Advertising: Blue Line Media. www.bluelinemedia.com. [Online] 2014. [Cited: June 2, 2014.] http://www.bluelinemedia.com/airport-advertising.