The Low Cost Jetsmart airline presented a pioneering service in the region that allows you to travel monthly paying a fixed rate, in the style of Netflix or Spotify.
In an interview with Juan Cristóbal Andrews, senior marketing and electronic commerce manager of the airline, he explained how the model works, its impact on Colombia and what comes for the future.
Where did this idea come from and how did they materialize it?
In Jetsmart we have been constantly, especially in recent times, trying to generate innovation in different areas, especially from the consumer side. We have worked on things like attention channels, chatbots and other tools. And there is another part that has to do with offering products that help customize the customer trip.
For example, in Jetsmart we have a clear approach: detach certain elements of traditional services, such as fast food where fries and hamburger drink separate. With this we seek to give options to consumers, which in this case are those who only want a hamburger, or those who just want to fly without luggage. Thus, we customize the trip more, allowing passengers to choose what they really need.
And how does this connect with the part of air rates and how does travelers impact?
The theme of air rates is key, because aviation constantly changes. Normally, if you buy tickets in advance, let’s say three months before, you can get a cheaper price. But there are people who travel frequently, such as remote workers, digital nomads, students, or people traveling for work. There arises the question: How do we innovate from the aspect of income to offer more accessible rates and make more people travel with us?
The alternative is that airlines generally have few products available to generate additional income. Some offer entertainment on board or retail products, but those options are limited. So, we began to explore services such as the subscription, a model that had not been implemented in Latin America, but that was already working in Europe. This model had already tried some airlines, such as Volaris, with good results. We had evaluated it for years, but we had not found the right time to launch it so far.
Juan Cristóbal Andrews, E-Commerce and Marketing Director. Photo:Jetsmart
So what made it the right time to implement this subscription model?
This subscription model requires a strong investment in time and resources. Over the years, we had evaluated it several times and, in that process, we discovered that the idea had already worked well in other airlines. In addition, the current moment in which many travelers look for more accessible and flexible options to travel, made it the perfect time to implement it.
An example of how the service works, because it could resemble the coupons …
Yes, yes. There is a difference with the couponera that you mention from other airlines. That couponera is something that one pays in advance for a whole year, right? The main difference in our service is that you pay monthly. So it is more similar, as some call it, the first streaming service of the airlines. Although, among us, it is not a streaming itself, but a subscription service.
It is similar to what happens with Netflix: one pays monthly and consumes the service that month, the same with Spotify. Here it works the same. You decide, for example, that you are going to pay a monthly payment and you have different values to choose from. We have two plans. In the case of Colombia, one is the smartpass, which starts from the 57,000 Colombian pesos, and that allows you to travel once every two months.
And how would that work in a specific example? How would someone use it?
I give you a specific example. Suppose I live in Bogotá, I work there, but my family is in Medellín. I frequently travel between both cities for work and to visit my family. If the price of the ticket was very high, maybe I could not travel. With this service, I can hire the smartpass, which allows me to travel once every two months, paying 57,000 pesos for a single journey. If I want to travel more often, I have the fullass, which costs 100,000 pesos and allows me to travel every month, round trip.
For example, if I am in Bogotá and I want to go to Medellín, I could hire the service to travel every month, paying 100,000 pesos. Or if I want to travel every two months, I pay only 57,000 pesos. The process is simple: I register on the site, I put my credit card and I choose the plan that suits me, whether the smartpass or the fullress. Then, I choose if I want to travel with luggage or without it, which also has an additional cost. If I then decide to add luggage or even priority or pet shipping, I can also do it, although that will have another price.
The airline service is already available. Photo:Stock
So, the additional cost for luggage is added after hiring the plan, or is it something that is included from the beginning?
The additional cost for luggage or other additional services, such as priority shipping or pets, adds after hiring the plan. For example, if you decide to travel without luggage at the beginning and then decide to take it, you can add it later. That has an additional cost, but it is cheaper than buying luggage separately in a standard reserve.
So, returning to the basics, how would this work for someone who wants to travel every month? What would the process be like?
It is very simple. Imagine that I want to travel every month to visit my family. The first thing I do is create an account, I choose the plan to travel every month. If I don’t want to wear luggage, I don’t select it. Then, I pay and I am ready. From that moment on, I can buy a ticket. The only exception is that I must buy the ticket at least 7 days in advance. You cannot buy immediately, only 7 days in advance. For example, if I register now, I could be traveling around April 10. Next month, in May, I could travel again, and so on. Always for the same amount as payment every month, which is 57,000 Colombian pesos for the basic plan. I would only have to pay the airport rates, which are around 50,000 pesos.
Does that mean that with the monthly payment of 57,000 pesos, do you travel once a month? And then you renew the service the following month?
Exactly, once a month. If you pay 57,000 pesos, travel once a month. The following month, renew the service and you are entitled to another trip. This depends on the plan you choose, of course.
Is it possible to pay only one month, or is it necessary to commit yourself for longer?
Yes, it is possible to pay only one month. It is a monthly subscription service, it does not require paying a whole year. However, as in many subscription systems, we have a recurring payment commitment. This helps us to plan internally and to offer lower prices. Payment is monthly, and if you want to cancel at any time, you can do it, but the commitment is annual, with monthly payments.
Is the service already enabled for users? Can people already register and start using it?
í, the service is already enabled. Although I cannot share exact figures right now, I can tell you that the results have been very good, even exceeding our expectations. Many people are already using it. For example, we have already exceeded the thousand people who have registered in a few days. In Colombia, about 40-45% of users come from there, which is significant, because Jetsmart operates in four countries. So Colombia is showing great interest in the service.
What kind of travelers do you think more of this service will benefit?
We hope that any type of traveler can take advantage of it, but the natural thing would be that people who fly frequently would use it. This service is designed for those who travel recurrently, either for work, family or any other reason. But we also hope that those who never flew before can start enjoying the freedom to travel more often thanks to this service.
So, is the goal to revolutionize the way people travel and buy their tickets?
Exactly, that is the idea. The aviation industry has worked in the same way for many years, but everything is changing: from artificial intelligence to subscription models. As a airline, we have the responsibility to catch up and offer some value for our consumers. This model benefits both the consumer and the airline, since it allows us to connect with more users and offer them a simpler way to travel, adapted to their needs.
Is the registration and payment process completely online through the JetSmart page, right?
Yes, the entire registration and payment process is done completely online through our website. We want it to be as easy and accessible as possible for our customers.
Does the subscription package include flights only among the four countries mentioned in the statement? If I, as a Colombian, want to travel to Chile, Argentina or Peru, could I only do it within those countries?
Correct, the package currently only covers domestic flights within the countries where we operate. If you buy the plan from Colombia, you can only fly within the country, that is, among the cities of Colombia. However, we are evaluating the possibility of creating a different product that allows you to travel internationally with the same frequency. We are working on new products for different customer segments that may need frequent international flights. This product we have today is for people who need to travel within their own country, but that could change with the future products we have in mind.
How was Jetsmart’s operation in Colombia so far? Do you have any figure you can share?
Yes of course. Although some figures are confidential, I can tell you that we are very happy with performance in Colombia. We already have 8 aircraft operating, one per month, and we are growing at high speed. Since we arrived in March 2024, we have transported more than 3.2 million passengers throughout our operation. In addition, we have managed to reduce rates in cities where we operate by 25%. An important fact is that 38% of our passengers are first flying, which fills us with pride because it means that we are bringing more Colombians to the plane. Currently, we operate 17 routes to 10 national destinations and we have 8 totally new aircraft.
Camilo Peña Castañeda – today’s life