Présentation de TRAVELPORT dans le cadre de la conférence : "La survie des Packages passera-t-elle par les Low-Cost ?" organisée par l'association Exchange For Travel au Welcome City Lab le 22 juin 2016
This document discusses how technology and social media have changed consumer behavior. It notes that consumers are highly connected through various devices and use of WiFi and social media is widespread. This presents challenges for capturing consumer attention across multiple stakeholders like airports, retailers, and brands. The document advocates leveraging technology to improve the consumer experience through a single platform that engages consumers across their entire travel journey from pre-travel to post-travel. It argues this could deliver a "consumer utopia" by providing relevant information and promotions while reducing noise and confusion from multiple messages. The key target is noted as millennials who make up 50% of travelers and shoppers.
Emn airport club fbo media kit february 2011Megan Leddy
The document provides an overview of EMN Airport Clubs, which offers advertising opportunities within airport lounges and clubs frequented by business travelers. Key details include that EMN has access to over 90% of US airport clubs, club members spend on average 1 hour and 41 minutes per visit, and the typical club member is male, aged 35-54, takes 29 business trips per year, and earns over $182,000 annually. Advertising options described include digital signage, posters, experiential campaigns, and mobile/online opportunities.
The document outlines 5 trends for the auto industry in 2020: 1) Consumers prioritize quality over affordability in vehicles. 2) Sustainability and renewable energy are increasingly important as climate change concerns grow. 3) Good customer service when issues arise can boost brand favorability. 4) While self-driving cars are anticipated, most consumers don't think they will be the most transformative technology of 2020. 5) Tesla has seen the most growth and social/web visibility compared to other top auto brands like Toyota, BMW, Honda, and Ferrari.
Pertaining to this ever-growing and evolving segment, what are various ways in which airports can create and deliver value to their passengers, while building closer, more personal relationships with them?
To analyse this, David McMullen and Shubhodeep Pal will be delving into opportunities such as ‘crowdsourcing’, ‘crowdfunding’, end-to-end mobile experiences and next-generation airport retail over a series of upcoming articles in #AirportMarketingX.
Airline IT Trends: the overview Celebrating 15 years of market insight for th...SITA
The document summarizes key findings from surveys of airlines, airports, and passengers conducted by SITA regarding IT trends in the airline industry. It finds that airline IT spending is increasing as airline revenues grow. By 2016, airlines will maximize revenue opportunities through mobile and kiosk sales channels and gain deeper business insights to improve passenger services and operations. Mobile services will become mainstream across the entire passenger journey, offering more check-in and boarding options. This will transform airline operations through new mobile-enabled capabilities.
The Kaizo Advocacy Index is a bi-annual audit that examines brands' online reputations by emulating how consumers search for brands online. The Winter 2011 audit found that Waitrose had the highest score among supermarkets, while Virgin Atlantic scored higher than other airlines like British Airways. In the mobile sector, Vodafone and O2 scored well while T-Mobile and Orange struggled after merging. Among cereals, healthier options like Weetabix and Shredded Wheat saw positive buzz. PC brands benefited from increased enthusiasm around tablets. The full report is available online.
The Kaizo Advocacy Index is a bi-annual audit that examines brands' online reputations by emulating how consumers search for brands online. The Winter 2011 audit found that Waitrose had the highest score among supermarkets, while Virgin Atlantic scored higher than other airlines like British Airways. In the mobile sector, Vodafone and O2 scored well while T-Mobile and Orange struggled after merging. Among cereals, healthier options like Weetabix scored well due to advertising. PC brands benefited from increased enthusiasm for tablets. The full report is available online.
The document summarizes the results of the bi-annual Kaizo Advocacy Index (KAI) which examines brands' online reputations and recommendations. The following are some key findings:
Hovis saw a dramatic rise in online popularity compared to the last Index, while Virgin Atlantic maintained a strong online presence similar to Hovis. Social media is becoming an important business tool for brands to engage with customers online and address negative comments. The introduction of searches on Facebook and Twitter in this year's study recognizes the growing importance of social networks. The overall scores show Virgin Atlantic, Symbian, T-Mobile and Vodafone as the top performing brands in the airline, software and mobile sectors respectively according
This document discusses how technology and social media have changed consumer behavior. It notes that consumers are highly connected through various devices and use of WiFi and social media is widespread. This presents challenges for capturing consumer attention across multiple stakeholders like airports, retailers, and brands. The document advocates leveraging technology to improve the consumer experience through a single platform that engages consumers across their entire travel journey from pre-travel to post-travel. It argues this could deliver a "consumer utopia" by providing relevant information and promotions while reducing noise and confusion from multiple messages. The key target is noted as millennials who make up 50% of travelers and shoppers.
Emn airport club fbo media kit february 2011Megan Leddy
The document provides an overview of EMN Airport Clubs, which offers advertising opportunities within airport lounges and clubs frequented by business travelers. Key details include that EMN has access to over 90% of US airport clubs, club members spend on average 1 hour and 41 minutes per visit, and the typical club member is male, aged 35-54, takes 29 business trips per year, and earns over $182,000 annually. Advertising options described include digital signage, posters, experiential campaigns, and mobile/online opportunities.
The document outlines 5 trends for the auto industry in 2020: 1) Consumers prioritize quality over affordability in vehicles. 2) Sustainability and renewable energy are increasingly important as climate change concerns grow. 3) Good customer service when issues arise can boost brand favorability. 4) While self-driving cars are anticipated, most consumers don't think they will be the most transformative technology of 2020. 5) Tesla has seen the most growth and social/web visibility compared to other top auto brands like Toyota, BMW, Honda, and Ferrari.
Pertaining to this ever-growing and evolving segment, what are various ways in which airports can create and deliver value to their passengers, while building closer, more personal relationships with them?
To analyse this, David McMullen and Shubhodeep Pal will be delving into opportunities such as ‘crowdsourcing’, ‘crowdfunding’, end-to-end mobile experiences and next-generation airport retail over a series of upcoming articles in #AirportMarketingX.
Airline IT Trends: the overview Celebrating 15 years of market insight for th...SITA
The document summarizes key findings from surveys of airlines, airports, and passengers conducted by SITA regarding IT trends in the airline industry. It finds that airline IT spending is increasing as airline revenues grow. By 2016, airlines will maximize revenue opportunities through mobile and kiosk sales channels and gain deeper business insights to improve passenger services and operations. Mobile services will become mainstream across the entire passenger journey, offering more check-in and boarding options. This will transform airline operations through new mobile-enabled capabilities.
The Kaizo Advocacy Index is a bi-annual audit that examines brands' online reputations by emulating how consumers search for brands online. The Winter 2011 audit found that Waitrose had the highest score among supermarkets, while Virgin Atlantic scored higher than other airlines like British Airways. In the mobile sector, Vodafone and O2 scored well while T-Mobile and Orange struggled after merging. Among cereals, healthier options like Weetabix and Shredded Wheat saw positive buzz. PC brands benefited from increased enthusiasm around tablets. The full report is available online.
The Kaizo Advocacy Index is a bi-annual audit that examines brands' online reputations by emulating how consumers search for brands online. The Winter 2011 audit found that Waitrose had the highest score among supermarkets, while Virgin Atlantic scored higher than other airlines like British Airways. In the mobile sector, Vodafone and O2 scored well while T-Mobile and Orange struggled after merging. Among cereals, healthier options like Weetabix scored well due to advertising. PC brands benefited from increased enthusiasm for tablets. The full report is available online.
The document summarizes the results of the bi-annual Kaizo Advocacy Index (KAI) which examines brands' online reputations and recommendations. The following are some key findings:
Hovis saw a dramatic rise in online popularity compared to the last Index, while Virgin Atlantic maintained a strong online presence similar to Hovis. Social media is becoming an important business tool for brands to engage with customers online and address negative comments. The introduction of searches on Facebook and Twitter in this year's study recognizes the growing importance of social networks. The overall scores show Virgin Atlantic, Symbian, T-Mobile and Vodafone as the top performing brands in the airline, software and mobile sectors respectively according
Effective Business Strategies in Corporate Travel Marketerya1
The European corporate travel market is worth $327 billion annually, making it attractive yet challenging for airlines. It is expanding despite economic downturns but corporations are becoming more cost-conscious. Airlines face intense competition from both legacy carriers and low-cost carriers. Major challenges include economic instability, accelerating liberalization, the low-cost carrier revolution, and high fuel prices. Airlines are implementing strategies like alliances and loyalty programs, focusing on social responsibility, using hub networks, and developing premium classes and low-cost business models to compete in this complex market.
Aeromexico Overview Presentation - September 2014Aeromexico_IR
Aeromexico is Mexico's leading airline with a hub and spoke model and two-class service. It has 80 destinations in 20 countries with over 600 daily flights. The airline is focusing on increasing connectivity and profitability through strengthening its hubs in Mexico City and Monterrey. It aims to improve market share and revenue through network expansion, upgauging aircraft, and increasing connectivity between flights. Aeromexico has a solid financial profile and is focusing on cost control initiatives to improve productivity and profitability.
The document provides an overview and trends in the commercial aviation MRO market. Key points include:
1) The global commercial aircraft fleet is expected to grow at 3.4% annually to over 37,000 aircraft by 2025, driven by emerging market growth and new technology aircraft.
2) The global MRO market is forecast to reach $96 billion by 2025, growing at an average annual rate of 4.1% as airlines invest profits in fleet maintenance and modifications.
3) Modifications are the fastest growing MRO segment as airlines invest in premium cabins, connectivity, and other customer experience upgrades to drive revenue.
1. JCDecaux is a global leader in outdoor advertising with operations in over 70 countries across 5 continents and annual outdoor revenue of $3.7 billion in 2014.
2. They are the number one company worldwide for transport advertising with 379,060 panels across 27 countries and also lead airport advertising in 33 countries and 230 airports.
3. Air traffic is expected to double over the next 20 years, presenting a major opportunity for airport advertising to reach senior executives, affluent consumers, and global opinion leaders as they have high dwell times in airports.
The document is an investor relations presentation for Aeromexico outlining its market environment, initiatives to build a strong and flexible airline, and strategic initiatives. It notes that Aeromexico is Mexico's only full-service carrier operating a hub in Mexico City with over 80 destinations. It highlights the airline's financial results, cost efficiency, fleet strategy, and risk management practices. It also discusses strategic partnerships with Delta and plans for Mexico City's new airport.
How can airlines improve the customer experience, revive brand loyalty and undo the effects of years of cost-cutting?
Read more and watch videos>> http://bit.ly/FoAT
Volaris corporate presentation november 2017irvolaris
Volaris is the leading ultra-low-cost airline in Mexico, serving 68 destinations in Mexico, the United States, and Central America. It has experienced strong growth since 2008, expanding its fleet from 21 to 67 aircraft and growing passenger demand at a compound annual rate of 20.6%. Volaris has a highly efficient cost structure and strong profitability, with adjusted EBITDAR growing at a 37.4% compound annual rate. Going forward, the company aims to continue stimulating demand through low fares and increasing capacity, while further growing its non-ticket revenue streams and diversifying its route network both domestically and internationally.
This document discusses airline distribution and the role of Airlines Reporting Corporation (ARC). It provides statistics on ARC's operations, including 400 employees, 12,000 accredited agency locations, and $85.6 billion in air sales processed in 2016. The document examines the mechanics of ARC's settlement plan and discusses how airline distribution is changing with the rise of New Distribution Capability (NDC), which allows airlines to provide an increasing amount of content directly rather than through global distribution systems (GDS). While ARC offers efficiencies for travel agencies and carriers, airlines' growing interest in direct distribution and ancillary revenues poses a threat to ARC's traditional ticketing role over the long run.
The document discusses METRIC Global, an investment advisory firm focused on the aviation and tourism sectors. It provides details on METRIC Global's deals, management team, and outlook on the aviation industry globally. The aviation industry is expected to see sustained growth driven by emerging markets like China and India. However, increasing costs and overcapacity remain challenges. Consolidation and improving efficiency will be important for the industry going forward. METRIC Global sees opportunities for deals involving companies like Alitalia and XL Leisure Group.
Virgin Atlantic, Marketing, External Environment, Internal Environment, Porter's Five forces Model, IIFM, Indian institute Of Forest Management, Richard Branson
The document discusses strategic groups within industries and how airlines can be categorized into different strategic groups. It identifies three main strategic groups for airlines: network carriers, low-cost carriers, and regional carriers. Network carriers closely follow their group's strategy, while regional carriers loosely follow. The document examines how airlines innovate and imitate the strategies of other groups to change their positioning within and across groups over time.
Ryanair has grown rapidly since the 1990s by pioneering the European low-cost carrier business model. It focuses on lowering costs through measures like direct online booking, point-to-point routes, secondary airports, and eliminating extras. This allows Ryanair to offer low fares that have driven huge passenger growth. Currently the largest European carrier, Ryanair aims to further cut costs and find new revenue streams like in-flight entertainment to maintain its low-cost advantage.
The document discusses the low-cost carrier industry in India. It notes that low-cost carriers like Ryanair and Southwest Airlines have been very profitable compared to established carriers. In India, the key low-cost carriers are Air Deccan, SpiceJet, IndiGo, and Go Air, which have been successful by adopting business models focused on reducing costs and offering lower fares. The market share of low-cost carriers in India has been growing and consolidation is occurring, such as Kingfisher acquiring a stake in Air Deccan. The future of the Indian aviation industry is projected to see significant passenger growth over the next decade.
January 25-26, 2017
Cancun, Mexico
ICF delivered a presentation at the MRO Latin America Conference in Cancun, Mexico.
The presentation provides a forecast for the maintenance, repair, and overhaul (MRO) industry and highlights trends in aircraft operations.
FlyEutopia aims to provide affordable transatlantic flights between New York and London with superior customer service. It plans to offer open seating, snacks/drinks for purchase, and expand to Paris and Frankfurt over time. The large market size between New York and London could provide FlyEutopia with 3.4% market share and 60% passenger load initially. Competitors include legacy carriers not focused on low costs or service, while FlyEutopia sees its low fares and customer service as advantages. Marketing will target online and local ads while sales occur directly or through codeshares. Financial projections estimate losses initially but profitability in years 3-5 as load factors and revenues increase.
Air travel is growing rapidly and expected to increase significantly by 2017, especially in Asia-Pacific. Travelers now do more research online before booking and prefer self-service options across their entire journey. However, many airline websites have poor performance and availability, failing to meet industry standards. To better serve evolving customer needs and capture more direct bookings, airlines need to improve their websites to ensure fast, reliable performance that can handle large traffic surges.
We are Airport Media, a pure play airport media owner with 52 million annual passengers across fast growing UK airports. Our audiences have an ABC1 profile of 77% and consist of two distinct groups - Premium Leisure travelers who are over twice as likely to own a second home, and New World Business travelers of which 51% at Gatwick Airport are AB social grade and 20% travel for business. Airport environments promote high engagement with advertising according to research due to the psychological alertness of passengers excited for their journey.
We are Airport Media, a pure play airport media owner with 52 million annual passengers across fast growing UK airports. Our audiences have an ABC1 profile of 77% and consist of two distinct groups - Premium Leisure travelers who are over twice as likely to own a second home, and New World Business travelers of which 51% at Gatwick Airport are AB social grade. The airport environment according to research promotes high engagement with advertising due to the psychological alertness of passengers excited for their journey.
This document introduces a new platform called Intersailclub that allows travelers to book cabin cruises and sailing trips. It discusses trends in experiential travel and peer-to-peer marketplaces that Intersailclub addresses. The platform connects travelers with boat owners and charter companies to book affordable to luxury sailing experiences. Intersailclub has experienced growth since 2014 and lays out roadmaps and goals to expand further with or without investor funding, including increasing bookings, services, and entering new markets like Asia and adventure travel.
This presentation by Brian Pearce from IATA was made during a roundtable discussion on airline competition held at the 121th meeting of the OECD Competition Committee on 19 June 2014. Find out more at http://www.oecd.org/daf/competition/airlinecompetition.htm
Explore Architectural Wonders and Vibrant Culture With Naples ToursNaples Tours
Discover the historical gems and vivid culture of Naples with our guided tours. From the vivid narrow streets of Spaccanapoli to the ancient ruins of Pompeii, the city offers a mixed bag of adventurous experiences. Book your tickets today https://www.naples.tours/ and experience the best of Naples!
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Effective Business Strategies in Corporate Travel Marketerya1
The European corporate travel market is worth $327 billion annually, making it attractive yet challenging for airlines. It is expanding despite economic downturns but corporations are becoming more cost-conscious. Airlines face intense competition from both legacy carriers and low-cost carriers. Major challenges include economic instability, accelerating liberalization, the low-cost carrier revolution, and high fuel prices. Airlines are implementing strategies like alliances and loyalty programs, focusing on social responsibility, using hub networks, and developing premium classes and low-cost business models to compete in this complex market.
Aeromexico Overview Presentation - September 2014Aeromexico_IR
Aeromexico is Mexico's leading airline with a hub and spoke model and two-class service. It has 80 destinations in 20 countries with over 600 daily flights. The airline is focusing on increasing connectivity and profitability through strengthening its hubs in Mexico City and Monterrey. It aims to improve market share and revenue through network expansion, upgauging aircraft, and increasing connectivity between flights. Aeromexico has a solid financial profile and is focusing on cost control initiatives to improve productivity and profitability.
The document provides an overview and trends in the commercial aviation MRO market. Key points include:
1) The global commercial aircraft fleet is expected to grow at 3.4% annually to over 37,000 aircraft by 2025, driven by emerging market growth and new technology aircraft.
2) The global MRO market is forecast to reach $96 billion by 2025, growing at an average annual rate of 4.1% as airlines invest profits in fleet maintenance and modifications.
3) Modifications are the fastest growing MRO segment as airlines invest in premium cabins, connectivity, and other customer experience upgrades to drive revenue.
1. JCDecaux is a global leader in outdoor advertising with operations in over 70 countries across 5 continents and annual outdoor revenue of $3.7 billion in 2014.
2. They are the number one company worldwide for transport advertising with 379,060 panels across 27 countries and also lead airport advertising in 33 countries and 230 airports.
3. Air traffic is expected to double over the next 20 years, presenting a major opportunity for airport advertising to reach senior executives, affluent consumers, and global opinion leaders as they have high dwell times in airports.
The document is an investor relations presentation for Aeromexico outlining its market environment, initiatives to build a strong and flexible airline, and strategic initiatives. It notes that Aeromexico is Mexico's only full-service carrier operating a hub in Mexico City with over 80 destinations. It highlights the airline's financial results, cost efficiency, fleet strategy, and risk management practices. It also discusses strategic partnerships with Delta and plans for Mexico City's new airport.
How can airlines improve the customer experience, revive brand loyalty and undo the effects of years of cost-cutting?
Read more and watch videos>> http://bit.ly/FoAT
Volaris corporate presentation november 2017irvolaris
Volaris is the leading ultra-low-cost airline in Mexico, serving 68 destinations in Mexico, the United States, and Central America. It has experienced strong growth since 2008, expanding its fleet from 21 to 67 aircraft and growing passenger demand at a compound annual rate of 20.6%. Volaris has a highly efficient cost structure and strong profitability, with adjusted EBITDAR growing at a 37.4% compound annual rate. Going forward, the company aims to continue stimulating demand through low fares and increasing capacity, while further growing its non-ticket revenue streams and diversifying its route network both domestically and internationally.
This document discusses airline distribution and the role of Airlines Reporting Corporation (ARC). It provides statistics on ARC's operations, including 400 employees, 12,000 accredited agency locations, and $85.6 billion in air sales processed in 2016. The document examines the mechanics of ARC's settlement plan and discusses how airline distribution is changing with the rise of New Distribution Capability (NDC), which allows airlines to provide an increasing amount of content directly rather than through global distribution systems (GDS). While ARC offers efficiencies for travel agencies and carriers, airlines' growing interest in direct distribution and ancillary revenues poses a threat to ARC's traditional ticketing role over the long run.
The document discusses METRIC Global, an investment advisory firm focused on the aviation and tourism sectors. It provides details on METRIC Global's deals, management team, and outlook on the aviation industry globally. The aviation industry is expected to see sustained growth driven by emerging markets like China and India. However, increasing costs and overcapacity remain challenges. Consolidation and improving efficiency will be important for the industry going forward. METRIC Global sees opportunities for deals involving companies like Alitalia and XL Leisure Group.
Virgin Atlantic, Marketing, External Environment, Internal Environment, Porter's Five forces Model, IIFM, Indian institute Of Forest Management, Richard Branson
The document discusses strategic groups within industries and how airlines can be categorized into different strategic groups. It identifies three main strategic groups for airlines: network carriers, low-cost carriers, and regional carriers. Network carriers closely follow their group's strategy, while regional carriers loosely follow. The document examines how airlines innovate and imitate the strategies of other groups to change their positioning within and across groups over time.
Ryanair has grown rapidly since the 1990s by pioneering the European low-cost carrier business model. It focuses on lowering costs through measures like direct online booking, point-to-point routes, secondary airports, and eliminating extras. This allows Ryanair to offer low fares that have driven huge passenger growth. Currently the largest European carrier, Ryanair aims to further cut costs and find new revenue streams like in-flight entertainment to maintain its low-cost advantage.
The document discusses the low-cost carrier industry in India. It notes that low-cost carriers like Ryanair and Southwest Airlines have been very profitable compared to established carriers. In India, the key low-cost carriers are Air Deccan, SpiceJet, IndiGo, and Go Air, which have been successful by adopting business models focused on reducing costs and offering lower fares. The market share of low-cost carriers in India has been growing and consolidation is occurring, such as Kingfisher acquiring a stake in Air Deccan. The future of the Indian aviation industry is projected to see significant passenger growth over the next decade.
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The presentation provides a forecast for the maintenance, repair, and overhaul (MRO) industry and highlights trends in aircraft operations.
FlyEutopia aims to provide affordable transatlantic flights between New York and London with superior customer service. It plans to offer open seating, snacks/drinks for purchase, and expand to Paris and Frankfurt over time. The large market size between New York and London could provide FlyEutopia with 3.4% market share and 60% passenger load initially. Competitors include legacy carriers not focused on low costs or service, while FlyEutopia sees its low fares and customer service as advantages. Marketing will target online and local ads while sales occur directly or through codeshares. Financial projections estimate losses initially but profitability in years 3-5 as load factors and revenues increase.
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This document introduces a new platform called Intersailclub that allows travelers to book cabin cruises and sailing trips. It discusses trends in experiential travel and peer-to-peer marketplaces that Intersailclub addresses. The platform connects travelers with boat owners and charter companies to book affordable to luxury sailing experiences. Intersailclub has experienced growth since 2014 and lays out roadmaps and goals to expand further with or without investor funding, including increasing bookings, services, and entering new markets like Asia and adventure travel.
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XFT : « Aérien – LCC, à la rencontre des nouvelles offres des compagnies et besoins voyageurs »
1. EXCHANGE FOR TRAVEL
Association pour le Développement des Technologies du Tourisme
La survie des Packages passera-t-elle
par les Low-Cost ?
2- « Aérien – LCC, à la rencontre des nouvelles
offres des compagnies et besoins voyageurs »
Paris le 22 juin 2016
3. Low Cost Carriers represent
an ever higher share of traffic
2 speed growth
over the last 5 years
63%
LCCs
11%
Rest Top10Rank Airline Pax number
(Millions)
1 Ryanair 79.3
2 Air France - KLM 76.4
3 Lufthansa 74.7
4 Easyjet 58.4
5 British Airways 37.6
6 Air Berlin 33.3
7 SAS 25.8
8 Alitalia 24.3
9 Aeroflot 17.7
10 Norwegian 17.7
LCCs represent 35% of PAX carried by
the
top 10 airlines in Europe…
8. Price is obviously a key
consideration for flight planning
Offering the lowest
available fare is a
key measure of
search performance…
…but it is not the
only thing that
should be considered
when evaluating
performance
51%
55%
52%
47%
42%
Price
Most convenient
flight times
Fewer stops /
better connections
Airport location
Past experience
with airline
Features rated “extremely important”
when choosing airline tickets
leisure travelersbusiness travelers
Source: Google – The air traveler’s road to decision
74%
42%
41%
37%
31%
9. The lowest fare is not always the
most convenient
How does an 8 hour
stopover with a 2
year old after
getting
off a 12 hour flight
sound?
10. Airlines are mastering the art of
upsell
Frontier Airlines:
22%
revenue
increase
Air Canada:
47%
of domestic
consumers chose
a higher branded
fare
• Basic fares allow
scheduled carriers to
compete directly on
price with LCCs
• Applying retail
psychology by
assigning a simple
price point to a better
bundle of amenities
11. And created a more
complex product most
clearly presented on their
own site
How airlines present their
offering…
How OTAs present the offering…
12. And has the potential to influence the online
landscape…
“The evolution of airline
products and merchandising is
also contributing to a major
shift in online air sales…
ancillary distribution
strategies are pushing OTAs’
air bookings – and their share
of online air – down at an
unprecedented rate.”
Source: PhoCusWright 2013
US online air spend (US$B)
46
57
18 17
2011 2012 2013 2014f 2015f
Airline via OTA
Airline website
In the US, the gap between the
airline
websites and OTAs is widening
13. The impact…
The majority of Retail Leisure Agents feel
they are at a strong disadvantage
compared to airline websites:
79% perceive they are at an extreme or
moderate disadvantage to compete with
airlines to sell ancillaries
71% perceive they are at an extreme or
moderate disadvantage to compete with
airlines to sell branded fares
Source: WTAAA/IATA NDC
Awareness Survey October 2015
Airline (Other Regional Slides can be found in the Appendix…)
In Europe today, Low Cost Carriers represent 35% of all passengers carried by the Top 10 Airlines.
Over the last five years, these 3 LCCs have grown passenger numbers by over 60%. The remaining 7 traditional carriers have gone through a series of consolidation, and have collectively grown passengers carried by just over 10%.
Indeed with such a high share of travellers choosing to fly LCC, this has become increasingly crucial content for OTAs to drive traffic & conversion
Passenger numbers and seat capacity have clearly grown globally over the years – mainly triggered by a changing economic and social landscape.
But where exactly is this growth coming from? Low Cost Carriers.
From a global perspective, this LCC expansion continues to overtake traditional airlines.
In Western Europe however LCC growth has slowed down relatively on the domestic network as network airlines claw back some share (growth of BA/IB/LHG)
In Eastern Europe however, LCCs are growing both in international and domestic markets.
What this means is that more new LCCs will come in to play, creating new travel providers for Travelport and new content for travel agents to access, often for the first time.
-------------
Background Information
Low cost carriers (LCCs) are growing faster than the traditional airlines in most regions
After posting growth of 11.5% YoY in 2013 to reach 874m passengers, LCCs are expected to grow at 8% in 2014 and 10% between 2014-19 to reach 1,604m passengers by 2019
Growth reflects slower uptake in mature regions such as North America and Western Europe, and higher growth in under-developed markets of Latin America, Middle East and Africa.
Sources: Travelport, T2RL, CAPA
What are ancillaries? They are essentially an airline commoditising their products item by item, or seat by seat for example, putting choice and value directly with the traveler. They are critical to an airline’s profitability and they will remain a strategic focus for the foreseeable future.
The most popular ancillaries relate to seats, WiFi, travel insurance and beverages/meals.
Ancillary sales are the logical progression for Rich Content and Branding where you will be able to “look then book” and monetise by growing attachment rates.
Although not currently a major revenue stream for Travelport, ancillaries are becoming an essential element of our airline customers’ businesses.
Seats are the biggest priority for airlines, and this is where we have concentrated our implementation efforts – and where we have encountered the most difficulties
Going forward, we will focus our sales strategy on airlines that have signed up to Rich Content and Branding
In addition, we will utilize a cross functional team to drive up ancillary attachment rates
Source: IdeaWorks
Price is clearly a key component of flight planning, and therefore offering the lowest available fare is a key measure of Search Performance. Being able to return the lowest lead-in fare option is always going to be important, whether you participate in metasearch, rely on organic search or a loyal customer base.
But we believe there are other criteria that are increasingly important.
Price is one of many variables that all weigh into the complex decision process that we go through when we decide upon a particular itinerary - whether that be the convenience of the flight times, number of connections, and accessibility of the airport – something that is an increasing consideration with some LCCs choosing secondary airport locations.
The reality is that the lowest fare is not always the most convenient
At some level convenience plays a role in our decision making, whether consciously or sub-consciously
Even on short haul, convenience plays a role. Want a flight to southern Spain? If you live in the south-east of England, you could fly to Malaga from Gatwick, Luton, Stansted, London City and Southend airports, with six airlines. You could also opt to fly to Gibraltar, Jerez or Seville instead...
Long-haul flights are even more complicated. For example variations not only include the fare, but the length of journey and the location and number of stopovers.
And it’s not just the unbundling of services – which have allowed the scheduled carriers to compete with LCCs directly on price in some cases - Airlines are mastering the art of upsell using methods seen in other retail environments (such as the automobile sector).
By bundling amenities into fare families, the pricing strategy of assigning a price point that seemingly represents better value than purchasing those amenities as individual options, actually encourages consumers to take the higher valued bundle.
Air Canada for example, have recorded that almost half of domestic consumers chose a higher branded fare. – what that ultimately means is that Airlines have found a way to get consumers to recognise value in the services they offer….if they pay extra for a higher branded fare, they obviously place value in what is included.
The fact that these Airlines can start to differentiate their offering and grow their revenue is why the airlines have put so much focus on displaying merchandising options.
The challenge now, is that the Airlines have created a product that is more complex, and today best (most clearly) presented on their own airline.com site.
On the left, you see how the airline site clearly displays the itineraries in a matrix that enables comparison of the prices of the fare families (in this case, Choice, Choice Essential, etc).
The airline site also allows the user to then explore the relative merits of each of the fare families and make an informed decision as to which meets their needs.
Airlines believe that the value of their products are best represented with this level of detail and differentiation. They want this value to be represented to the consumer, regardless of the channel used for booking.
On the right you can see how the same itinerary is represented on a typical OTA display
So what does this mean?
In the US, this development is being attributed in part to the shift in share between OTAs and Airline websites
According to PhoCusWright, this is one of the key explanations as to why in recent years spend on Air tickets on US OTA sites has flat-lined, while spend on the airline sites has grown.
This is the trend we need to address together….
So what’s the impact:
In the recent IATA study the majority of leisure agents surveyed feel at a strong disadvantage compared to airline websites to sell ancillary products or branded fares.
Close to 80% felt at a considerable disadvantage when it comes to selling ancillaries
And the responses from TMCs was very similar
So let’s take a look at how Smartpoint can help agents today
Just for Note:
TMCs
75% perceive they are at an extreme or moderate disadvantage to compete with airlines to sell ancillaries
61% perceive they are at an extreme or moderate disadvantage to compete with airlines to sell branded fares
640m invested in the most relevant technology
Cloud computing
Mobile first
Personalisation
One of the Largest non-military data centers
Using .NET
Our strategy is agile but remains focused
Sun with platform
Air hotel car, wifi , seats , bags , reviwes, chains independent
Content flowing in
Full content deal
The new full content
TVPT leads the industry
Over 128 carriers are now signed, including most recently the Lufthansa Group of airlines, and these airlines are now able to market their entire product suite and brand propositions in exactly the same way as they do on their own websites. So contrary to recent public rhetoric, airlines clearly see Travelport as an enabler for front-end value creation, which is in turn driving revenue growth for us.
Essentially, there is nothing that we are aware of that Lufthansa can do in its direct channel versus the indirect channel using Travelport. This means that the tens of thousands of travel management companies, travel agencies and corporate travelers who book using third party applications that are powered by Travelport can see and buy the entire range of Lufthansa product.
This is important not only from meeting the demands of our airline customers but also from a revenue generation perspective since each carrier that has implemented this capability pays Travelport a small additional premium fee for each booking made. And this in turn drives something we measure and report on called RevPas about which more later.