Make a difference in your air negotiations. Answer three metrics questions using standardized QSI. Building strong air contracts starts with your market share intelligence.
1. 1cirium.com
QSI makes a difference
in your air negotiations:
Airline market share analytics
for contract negotiations
Nathan Greer | Joel Antolini | Carrie Mamantov
March 2019
4. 4cirium.com
Are you prepared to build successful business partnerships?
Airline contract negotiating never ends!
82%
of Travel Managers
rely on their TMC data
for supplier
negotiations*
85%
of Travel Managers say
they also rely on the air
supplier data to prepare for
negotiations*
*Source: BTN Advancing Business Travel Intelligence – Oct 2016
6. 6cirium.com
ANTICIPATE
each Airline’s
negotiation objectives
You know your travel program needs. What if you could…
PROVIDE
recent and relevant
data to stakeholders
SUPPORT
your team in each step of the
negotiation process
IDENTIFY
information that will level
your negotiations
7. 7cirium.com
Equip your team:
Have a transparent,
open dialog with airlines
using standardized data
to make critical route
and contract decisions.
8. 8cirium.com
Knowing these (and other) answers can shift the conversation
In which service options
have the most important
markets materially changed
over the last 12 months?
What revenue and passenger
shares are carriers getting on
my client’s important domestic
markets?
What carrier and alliance
provides the best service for
my clients when there are no
nonstops?
Is my agency exceeding or
falling short of the share that the
carrier should be expecting from
me on the route?
10. 10cirium.com
Identify areas of shared interest
Connections vs Non-stops?
Options for re-accommodation?
Codeshare for connections?
Carrier alliance options?
What additional insight will help you develop your air program strategy?
11. 11cirium.com
QSI share is a standard metric for airline planners and sales
Service Type Value Share %
Widebody Nonstop 2.00 61%
Narrowbody Nonstop 1.00 30
Mainline-Mainline Cnx 0.20 6
RJ-RJ Cnx 0.10 3
Total 3.30 100%
Simple QSI Math Example:
12. 12cirium.com
Ask yourself:
How can you leverage
your customer’s activity
to be more competitive?
MARKET SHARE
more than expected?
SCHEDULE DEPENDENCE
non-competitive routes?
ROUTE CHANGE OPTIONS
best key routes?
NEW ROUTES
increased diversification?
16. 16cirium.com
QSI also considers alliances, codeshares and other partnerships
Star Alliance
Sky Team Alliance
oneworld Alliance
17. 17cirium.com
Provide your customers with knowledge and negotiating power
IDENTIFY
Your customers key trade-offs
and relevant QSI data sets
COMMUNICATE
How enhanced data can
inform key negotiations
ASSESS
Airline objectives and how
they can be leveraged
MEASURE
The impact of your customer’s
newly informed decisions
IDENTIFY
Opportunities for additional
savings
PREPARE
Your customers for situations
they will encounter
YOUR
CUSTOMER’S
POWER
IS YOUR
AGENCY’S
POWER
18. 18cirium.com
RECAP: Finding the shared value with airlines starts with your knowledge
knowledge of your
travel program
objectives
knowledge of the data
associated with each
knowledge of the
Airline’s objectives
knowledge to keep up with
constant changes
20. 20cirium.com
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