American Airlines' Rainbow TeAAm and its Strategy to Target the LGBT Segment

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Case Details:

Case Code : MKTG218
Case Length : 24 Pages
Period : 1994-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : American Airlines
Industry : Travel / Aviation
Countries : USA

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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“We know that all passengers, including gays and lesbians, bisexuals and transgender people, have many choices when it comes to travel. We want your loyal business and we will work to earn it.” ¹

- Betty Young² and George Carrancho, National Sales and Marketing Managers, American Airlines Rainbow TeAAm.

“It's very easy to advertise but the question to ask is what (is an airline) giving back to the community? Do they help local charities, gay and lesbian centers or grassroots organizations?” ³

- George Carrancho, in 2007.

“After many years of discrimination, gays and lesbians are more interested in companies that treat them with respect and do their best to accommodate them... And they have the purchasing power to show it,” ⁴

- Tom Nibbio, Marketing Manager, International Gay & Lesbian Travel Association⁵, in 2009.

Introduction

In April 2009, when Logo⁶ launched a new travel website dedicated to the LGBT⁷ community, TripOutGayTravel.com, American Airlines (AA), a leading airline carrier, came forward to become its site-wide sponsor and co-sponsor of the site's sweepstakes⁸.⁹

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1] “Letter of Nomination: American Airlines,” http://travel.gay.com/letter-of-nomination-american-airlines.html
2] In early 2009, Betty Young was promoted to the position of Director – Diverse Segment Marketing.
3] Aefa Mulholland with Ed Salvato, “Fly the Gay-friendly Skies: Top 10 Airlines,” www.gay.com, February 23, 2007.
4] Ken Sweet, “Corporate America Embracing LGBT Customers, Travel Dollars,” www.foxbusiness.com, April 30, 2008.
5] The International Gay and Lesbian Travel Association (IGLTA), headquartered at Fort Lauderdale, Florida, USA, is an association of travel agents, tour operators, hotels and guest houses, and other travel-related enterprises dedicated to gay and lesbian tourism. It was founded in 1983 and as of early 2009, was the largest such organization with more than 1000 members.
6] Logo is a gay cable channel launched in 2005. It is a unit of Viacom Inc.'s MTV Networks.
7] LGBT (or GLBT) is an acronym used to refer collectively to lesbian, gay, bisexual, and transgender people.
8] Sweepstakes is a type of consumer sales promotions aimed at generating enthusiasm and providing incentive reactions among customers by enticing consumers to submit free entries into drawings of chance that are tied to product or service awareness. The featured prizes are given away by sponsoring companies. In the TripOutGayTravel.com sweepstakes, users entered to win a trip to Fort Lauderdale at Florida's first W Hotel, and thirty first-place winners received a Fort Lauderdale beach starter kit including a beach towel, flip flops, and a beachball.
9] “Logo Launches TripOutGayTravel.com - The Ultimate Travel Site Featuring the Hottest Destinations for the LGBT Traveler,” http://news.moneycentral.msn.com, April 27, 2009.

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