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Uploaded byNarudh Cheramakara
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Airline Marketing 8. distribution

This document discusses airline distribution channels. It notes that websites are currently the largest portion for most low-cost carriers (LCCs) as they allow for easy, swift booking with payment options. Mobile apps and web are the fastest growing channels, especially in Thailand. Direct booking through the airline's own B2C website has advantages over B2B channels as it avoids commissions and is cheaper. However, B2B travel agents can provide close customer relationships in some cases. Online travel agents like Traveloka are very powerful but charge commissions. Global distribution systems are important for international carriers but traditionally avoided by LCCs due to high costs.

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Airline Marketing 8: Distribution Dr Narudh Cheramakara Bangkok University 1/2017
1. Distribution Channel • B2C
Website • Currently the largest portion of most LCC • Easy to use • Swift booking experience • Payment options • Back to the Nok Air principle of not taking too much information
Mobile web/App: fastest growing • Thais are particularly addicted to mobile phone • Nok Air has 21% from mobile  we have dedicted mobile department – Most are from app than m.web
1. Distribution Channel • B2B
Advantages of B2C • Direct to customers • No commission • Cheaper • The essence of low cost airlines • Some airlines offer low price guarantee
B2B: Travel Agent • In some cases, close relationship with customers • Have to pay commissions, and competing with other airlines • Decreasing role in the industry
B2B: Travel Agent • Online travel agent: • Very powerful • Traveloka, Expedia, Agoda etc. • Airlines have to please OTA • Traveloka keeps fare low by cutting its own commissions • Each country has it’s own preferred OTA
Meta search
GDS – Global distribution system • Very important for international airlines • LCCs traditionally shy away from this as it has high cost (10 USD per ticket) • Can help attracting foreign customers • Most LCCs use their own booking portal