Why Scoot's multi-airline platform play will deliver more than just cheap seats

Scoot, Singapore Airlines' low-cost subsidiary, recently launched a multi-airline booking platform in collaboration with Dohop which enables passengers to seamlessly book self-connect itineraries across various carriers, enhancing travel flexibility and expanding destination options. The move comes sometime after AirAsia also evolving its digital ecosystem to offer a wide array of services, including flight bookings with over 700 airlines. With the change, in 2024, the airline rebranded its Super App to AirAsia MOVE, aiming to transform into a holistic travel platform.

These shifts come at a time when the low-cost model is under pressure. Jetstar Asia, Qantas Group’s Singapore-based budget subsidiary, recently ceased operations after years of rising supplier costs, high airport fees, and mounting competition eroded its returns.

Against this backdrop, Scoot and AirAsia’s pivot toward platform-based strategies suggests that the next phase of survival, and growth, for budget carriers may lie in becoming broader digital ecosystems rather than just airlines, said industry players MARKETING-INTERACTIVE spoke to.

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Scoot’s new platform marks a natural evolution for budget carriers trying to move beyond just selling seats. Industry watchers say the move reflects both opportunity and pressure in a region where competition is fierce and margins are thin.

Prashant Kumar, founder and CEO of Entermind, a newly minted AI consultancy, framed it as part of a “time-tested formula”. He likened Scoot’s platform shift to turning a “store” into a “mall”, where the footfall generated by cheap fares can be monetised across more services.

“Eventually a lot of margins may come from the ‘tenants’ rather than ‘store’. And of course, there is value back for the flyers due to higher share of travel occasions, unlocking a new growth flywheel,” he added. For Kumar, the move underscores how airlines are increasingly “50% DataCo (data companies) and 50% flying seats”, with AI playing a critical role in unlocking new sources of value.

Kumar added that beyond margins, the strategy is also about defence:

Travelers need to plan their journeys and a leg in that journey may involve you. So either you control the journey or someone else will.

Laura Kantor, founder and director of Climate Club, formerly the marketing director at quick commerce platform foodpanda, agreed that the strategy is as much about control as it is about expansion. Pressure on margins, reliance on third-party platforms, and the lure of expanding network reach without heavy investment, are likely triggers that drove the move. 

Calling the move a smart pivot, she said:

"The move indicates that Scoot is hungry for direct sales and richer margins, cutting out aggregators such as Skyscanner and owning more of the customer relationship. By working with Dohop, an Icelandic tech platform that stitches flights across different carriers, Scoot can scale quickly without adding its own fleet."

Kantor added that the move indicates Scoot taking full control of the customer journey, which is especially smart when you’re part of the SQ family playing in the value-air space.

What the move means for customers?

Sanchit Mendiratta, managing partner and founder of Neo 42, said from the customer lens, the move tackles a real pain point of booking multiple tickets, and the anxiety to make the next connection.

"The pain is now reframed with ConnectSure into confidence and peace of mind. Because turning stress into trust is how the best brands build loyalty and reinforce their identity over time. Feels like all the pieces of the marketing puzzle coming together nicely - from branding and packaging to customer experience and loyalty," he said.

Mendiratta, who previously worked with the likes of Dentsu to grow the CX offering, added that Scoot is also moving into a sweet spot between affordability and possibility.

"By opening up both global hubs and smaller secondary cities, it’s pushing the democratisation of travel forward - making it easier for millennials, Gen Zs, and heritage travelers to go farther for less," he said.

He added that the move reflects how traveller expectations are shifting, with aspirational yet cost-conscious consumers seeking broader reach without compromising on affordability. For Scoot, the strategy is less about single-ticket sales and more about encouraging repeat usage, expanding market share, and reinforcing its brand promise as it matures.

Potential challenges and opportunities

While the potentials are immense, the success lies in execution, said the players MARKETING-INTERACTIVE spoke to. The opportunity is big, but the challenge is in execution and keeping the experience seamless, so it feels like a Scoot experience and not a third-party patchwork.

Kantor added that at the end of the day, complexity in operation and coordination, will make or break the experience and there is always a risk if a partner airline drops the ball. "Service consistency matters, and accountability can get blurred if things go wrong," she said.

Meanwhile, Kumar highlighted the importance of differentiation in a crowded market.  “If you are basically protecting your core, you have some leverage there. If you are looking to add share of occasions, it needs clear differentiation,” he said. 

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