BA to plough £3m into relaunch of Club World

British Airways is gambling on a £3m relaunch of its Club World product at a time when business fares are set to plunge.

Despite fears that a war with Iraq could decimate bookings, the airline will begin a heavyweight ad campaign tomorrow (Friday) to highlight the superiority of its flat beds in long-haul business class.

As predicted by Marketing (November 7, 2002), BA will base the campaign on a TV ad that has been a hit in the US.

Created by M&C Saatchi, the ad shows a businessman going to bed in New York's Times Square and waking up in London's Piccadilly Circus.

BA is also using tilting billboard sites to demonstrate the flatness of its beds and backing the brand-building campaign with an offer of two free Club Europe flights for every full-fare Club World ticket purchased.

The promotional strapline is 'Two free tickets if you sleep with us'.

The airline, which revealed a better-than-expected £25m third-quarter profit on Monday, says it is promoting Club World now because the product is reaching 'critical mass'.

BA has installed flat beds in the business class cabins on 44 of its 75 long-haul routes. However, a prolonged war with Iraq could have a devastating effect on Club World bookings.

"Life has to go on," said Jayne O'Brien, BA's general manager, marketing, for UK & Ireland. "We will monitor the situation closely and may yet go silent as we did in the aftermath of September 11."

Equally worrying, the latest American Express European Corporate Travel Index predicts a business fares price war due to the growing gap between cut-price economy fares and premium seats.

COMMENT

British Airways started its fight-back against the short-haul budget carriers with the 'Have you seen how small our fares are?' campaign last autumn.

Now it is using the biggest single advantage that the airline has in the long-haul market - the flat bed.

Such focus has enabled BA to rediscover the confident voice that has long been missing from its advertising.

Unfortunately, the recovering airline could be plunged into fresh crisis with a war in the Gulf and much of its good marketing work may be obliterated.

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