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Digital Travel APAC Singapore - Personalised Ancillary Sales
- 1. Personalised Ancillary Sales How can you tap into unrealised revenue streams with a dynamic range of products and services that passengers actually welcome and that enhance each step of their travel journey? Presented By : Kavi Chaurasia Designation : VP - Marketing and Brand Communication Company : Air Costa Aviation
- 2. Passenger Traffic GREW at 11.8% CAGR India Ranks 4th in Domestic Traffic Volume GROWTH PATTERN OF PASSENGER TRAFFIC IN INDIA Total Passenger Traffic Stood 224 million
- 3. Domestic Market Budget Carriers India’s Largest Airline Bench Marked Revenue - 7:1 ( 13% ) Domestic Airlines Avg.- 10:1 ( 9% ) Lowest Contribution - 16:1 ( 3% ) Smallest Airline - 6:1 ( 15% ) Global Median - 11:1 ( 8% ) Avg. / Aircraft / Month Contribution in India- US $ 0.10 million (INR 6.5 million) Popular Ancillary Business Touch Points Budget Airline Ratio Ticketing Revenue : Ancillary Revenue Potential
- 4. Popular Ancillary Business Touch Points Domestic Market Budget Carriers Inflight Catering Inflight Magazine Product Sales Sampling Branding Options available Seating Configuration Privilege Passenger Charges Loyalty Program Concierge and Other Alliances Improvised Cargo Services Potential
- 5. Domestic Market Budget Carriers Popular Ancillary Business Touch Points Potential 224 Million Passengers ( Yr. ) Ancillary Revenue Corpus US $ 3.46 Billion ( INR 224 Billion ) Consumed approx. 40% of the Pocket 11% CAGR in Passenger Traffic
- 8. They Treated Me Like A Cargo Holding A hand Bag We Serviced Our Customer Till The Boarding Gate While There Is A Major Push To Increase Ancillary Revenue To Meet The Cost
- 9. Ancillary Revenue to be in sync with Brand Strategy to work in long term KEY
- 16. Being Watched We Know You
- 17. Fluctuating Loyalty Price War Increased Volume Higher Dependency on Tools On GDS- DNKYC Multi Customer Segments Key Reasons : Why Personalisation is “MOSTLY” not Happening
- 19. A 5% Improvement in Customer Experience can trade off the Operations Cost by 13% Per Aircraft
- 20. Sample Size 172 | Airports: BLR , AMD , JAI | September-2016 91% Passengers would welcome if Cab service is a part of their Air Travel. Out of 91% Only 37% agreed to pay while booking the Air Ticket 94% Passengers accepted to receive the promotional Offer. Out of 94% , 78% also complained about unwanted Promo Emails notifications. 46% Passengers would want to evaluate if Airline offers paid accommodation. Almost 100% Passengers wanted that Airline should remember them always. 85% Passengers expect Loyalty discounts at Retail and E-commerce. 71% Passengers prefer to eat on Board and expect their choice of food. 68% Passengers accepted to explore new paid services on-board.
- 21. Share Of Wallet Share Of Pocket
- 23. Personalised Skewed Alternate Travel Adapt Offers Post Travel Connect Support Reach Upto The Travel Periphery
- 24. Travel Care Holiday Packages Fare Rewards Preferred Food Customer Relations Connected Cab Hotel Offers Retail Discount Paid Book Reading Kids Stationery & Toys Customer Ancillary Touch Points Where Customer Is Willing To Pay For Service
- 25. Paid to Airline Boarding Card, Hand baggage, Headrest , Tray Table, etc. Seat Pocket - Magazine,Fliers Product Sampling Audio Ads Paper Cups, Water bottles etc. Visibility Advertisers Ancillary Touch Points - Brands , Alliances , Partners Service to Customer Cab / Taxi / Tour Hotels / Aggregators LRCF’s Wallets , E-com Self Help and Referrals Shared Revenue Alliance / Partners
- 26. How To Do It Your Text
- 29. Business man,Professional ,Doctor,Politician, Student,Dependent worker etc. Varied Preferred time to reach Category Time Choices Places,Brands,Utility,Entertainment , Mobile phone and many more Primary Data Collection is Airline’s Responsibility
- 30. Website / App Customer Care Airport Customer Touch Points
- 31. S. No. Total No. of seats per Aircraft No. Of Aircrafts Avg. Flights / Day / Aircarft Number Of Passengers / Month @80 % Load Factor Per Aircarft Revenue @ ATV INR 3000 Industry Ancillary Revenue Avg. @ 9% Rev. / Aircraft / Month Avg. Repeat Passengers / month @ 63% 1 180 20 6 518400 1,55,52,00,000 13,99,68,000 69,98,400 326592 2 110 5 6 79200 23,76,00,000 2,13,84,000 42,76,800 49896 3 72 8 6 82944 24,88,32,000 2,23,94,880 27,99,360 52255 4 45 5 6 32400 9,72,00,000 87,48,000 17,49,600 20412 REVENUE ( NON SEGMENTED VS SEGMENTED PASSENGER )
- 32. Contribution to the Total Rev, after 18 months - 30-35% Zero revenue loss in 18 months 90% Data collection time 18 Months Data Collection Compounding 40% pm Revenue Increases by 11%
- 33. Customer Care • Customer foot prints on the Dialler. • Conversation ended with red faced customer. • Customer deserves a call back. • Friendly and loyal customer. • Satisfied customer with service • Customer calling more than 20 times a month. • Need to change the agent for the next conversation. 7% 8% 10% 11% 29% 35%
- 34. Identifying Passenger Needs Cab Discounts Alternate travel Accommodation Data Feed Planner Category Retail Choose
- 36. • Customer capturing window mostly does not exist. • Notification post purchase carries more weightage. • Online reach strategy needs to change. • Up-selling shall happen in conjunction with the customer behaviour and profile. Digital Customer Reach
- 38. A Delighted Customer - Real Case
- 40. THANK YOU