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.

1. Airline Marketing 8:
Distribution
Dr Narudh Cheramakara
Bangkok University
1/2017

2. 1. Distribution Channel
• B2C

4. 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

5. 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

6. 1. Distribution Channel
• B2B

8. Advantages of B2C
• Direct to customers
• No commission
• Cheaper
• The essence of low cost airlines
• Some airlines offer low price guarantee

9. B2B: Travel Agent
• In some cases, close relationship with customers
• Have to pay commissions, and competing with
other airlines
• Decreasing role in the industry

12. 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

13. Meta search

14. 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