How the Internet has changed distribution in the airline industry.

Flash Player 9 (or above) is needed to view presentations.
We have detected that you do not have it on your computer. To install it, go here.

more share options
Embed For WordPress.com

Without related presentations

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’

Airlines looking beyond price to retain their market share

3 Favorites

sheetaljaimalani favorited this 1 week ago
Tags air
singingpeter favorited this 1 month ago
Tags report airline industry
LeeBlackwell favorited this 1 month ago

How the Internet has changed distribution in the airline industry. - Presentation Transcript

22 May 09
 What we know about the industry  Whatnew intermediaries have been developed  Do we still need travel agents?  Promotional strategy
How much would you spend? How would you book your flight? What type of ticket would you purchase?
 Greater convenience  Wider selection  Anytime, anywhere  Decreased indirect costs  Ticketless travel  Less human interaction  Growth of intermediaries  Role of travel agents  Tactical promotions
 Reluctance to purchase flights via Internet  Too much information  Security of credit card  Need for personal interaction & human interface  Assurance of professionals
Internet has  Increased convenience & decreased costs for consumers  Encouraged growth of new e-business models  Secured travel agents  Allowed airlines to adopt tactical promotions