2. What we know about the industry
Whatnew intermediaries have been
developed
Do we still need travel agents?
Promotional strategy
3. How much would you spend?
How would you book your
flight?
What type of ticket would
you purchase?
4. Greater convenience
Wider selection
Anytime, anywhere
Decreased indirect costs
Ticketless travel
Less human interaction
Growth of intermediaries
Role of travel agents
Tactical promotions
5.
6.
7.
8. Reluctance to purchase
flights via Internet
Too much information
Security of credit card
Need for personal interaction & human interface
Assurance of professionals
9.
10.
11.
12.
13. Internet has
Increased
convenience & decreased costs for
consumers
Encouraged growth of new e-business models
Secured travel agents
Allowed airlines to adopt tactical promotions
Editor's Notes
Dennis – father of three, wanting to take the wife away for a weekendLuis – mid 40’s CEO of a $10m revenue generating company going for a business meeting, which may or may not take 2 hoursSally – newly graduated uni student, works part time at Borders with no security of a full time job yet and planning a week away with the girlsKate – 68 year old grandma, has only flown three times and wants to visit her sonVirgin Blue started this by introducing the low cost carrier approach in Australia. Qantas responded in two ways – 1. started their own LCC, JetStar and 2. focussed on the consumer experience e.g. constantly upgrading their website to ensure a good experience
Greater convenienceWider selection at your finger tipsCan purchase anytime & anywhere so long as there is a computer, internet connection & credit cardDecreased indirect costsTicketless travel – You’re given a reservation ID rather than an actual ticket. All you have to do is show up at the airport with your ID.Less human interaction – self service check-in kiosks, online check-in, purpose of contact centres are no longer mainly for purchasesGrowth of new intermediariesRole of travel agentsNew pricing strategies
Priceline.com – ‘sacrifice quality for price’Webjet.com.au – demonstrates how consumers face low switching costsLastminute.com.au – ‘distressed inventory and dynamic pricing’
Priceline.com – ‘sacrifice quality for price’Webjet.com.au – demonstrates how consumers face low switching costsLastminute.com.au – ‘distressed inventory and dynamic pricing’
Priceline.com – ‘sacrifice quality for price’Webjet.com.au – demonstrates how consumers face low switching costsLastminute.com.au – ‘distressed inventory and dynamic pricing’
Airlines looking beyond price to retain their market share
Airlines looking beyond price to retain their market share
