This slide covers the distribution of the product in airline marketing. Give you easy pictorial concepts about distribution channels and its levels. How products chain work in past , and how distribution channels are in the present and future. Which source of distribution channels is used by airlines or the aviation industry? The introduction of the Global distribution system, and the advantages and disadvantages of the airline ticketing process and the reservation systems.

1. Distribution Of Product
By
Momina Riaz
Lahore School of Aviation

2. What is Distribution Channel ???
• A Link between the Product and Customer

3. Business-to-business
(B2B)
• Between a producer and
industrial users of raw materials
needed for the manufacture of
finished products.
Business-to-customer
(B2C)
• Between Producer & Final User

5. Direct Channel
• The product or Service goes directly to the
Customer, No Middle Man Involed

6. • Intermediaries or Middle man involved
Indirect Channel

7. Let See Who is Between Us???

9. Merchant Middle Man
&
Functional Middle Man

10. Whole Salers

11. • Retailers

12. • Commission Agents
• Brokers
• Auctionarees
• Sales Representatives

13. Super Profit

14. • Advantages
• Geographical coverage: an airline would have found it prohibitively
expensive to have its own sales shop in every high street and
shopping mall around the world. A travel agent provided such a
presence by selling tickets on behalf of all airlines and tour
operators.
• Agency are not a heavy overhead burden on airlines
• Agency relieved airlines of a great deal of the costly administrative
work associated with air travel ,for example an agent would issue
tickets assist with visa applications and deal with passangers
‘queries about airport check in times ,baggage rule etc.
Travel Agency Distribution System

15. • Disadvantages
• Higher commissions were charged by the travel agency from
their customers
• The manifestation of higher commission came in the form of a
proliferation of sales outlets as firms opened more and more
retail shops to strengthen their geographical presence in the
market relative to their rivals.
• Business travel market agents were often prepared to pass on a
proportion of the commission they earned to their retail
customers in the form of discounts , to build loyalty of their
existing clients or to buy that of the clients of other agencies.
• In both the case the airlines money paid out in higher
commission was used to finance agent.

16. THE PAST OF DISTRIBUTION
• Written tickets
• Printed tickets

17. The current distribution
• TRAVEL AGENTS INDUSTRY
• THE USE OF INTERNET
• CONVERTION INTO TRAVEL
CONSULTANTS
• TRAVEL MANAGEMENT COMPANIES

18. The future of distribution
• Direct distribution channel
• Airline websites
• Online travel agencies like
EXPEDIA & TRAVELOCITY
• ELECTRONIC TICKETS

35. Current Issues
• Global Distribution Systems is now somewhat less controversial
than it was, there are still some substantial debates in progress.
• Amongst the most contentious of these is the question of
funding of the GDSs
• The dominance of airline funding of Global Distribution Systems
has in turn led to two further controversies.
• The travel agent will often have a deal which ensures that the
GDS will be made available free-of-charge, or for a nominal rent
providing a sufficient number of bookings are made.
• A clear policy objective for many carriers to reduce their sales
through travel agents.
• A final issue for the GDS firms reflects the emergence of the so-
called “Cost Leader” airlines.

36. Distribution channels in the air
freight market
Air Freight Market 2019 Industry Growth
-competitor segment
-competitor includes:
.FedEx (Federal Express)
.United Parcel Service
.Emirates
.Cathay Pacific Airways
.China Airlines Cargo
.Japan Airlines
.Qatar Airways

37. THANK YOU