In line with Sempati Air's marketing strategy that is innovation, the company launched Preferred Connection Card (PCC) in 1992, which complied with the motto "We Mean Business". This product was set up in response to the domestic airline business service competition. Along with the country fast growing economy activities, more businessmen need to travel both domestic and overseas. PCC aimed at securing seat especially in peak seasons, such as Lebaran, Christmas or any other national holidays, eliminating the "fully-booked" problem, which was inevitably often encountered by those businessmen.



When it was first launched in 1992, PCC membership was expected to hit some 20,000 members. However the fact in 1995 the total registered members is 8,000 which means after three years of its introduction, PCC still has to capture another 12,000 members. In fact if we look from the point of view of the estimated frequent flyers of about 125,000 people, we conclude that there is an opportunity to boost the membership number to another 10,000 to 20,000 members. From the annual sold seat of 2 million seats, we assume that in average these people fly 8 times per year. 8 is the set number for a frequent flyer definition. Therefore the total frequent flyers are 250,000 people. In a conservative prediction, we decided that the frequent flyers that fly more than 8 times per year is only 50% that equals to 125,000 people. This is the potential market of PCC.



As a method of research, we use a questionnaire survey with a total population of 260 respondents. The study assessed that in order to get 96% level of confidence with 6.5% true proportion (proportion of PCC membership to potential population of PCC's frequent flyers), the size of the sample should be at least 240 respondents.



Research location: PT Sempati Air

Supervisor: Hadi Satyagraha, PhD.

Accepted:December 1995