
A guest article by Jay Sorensen of IdeaWorksCompany on how branded fares are generating profits for airlines. Frontier Airlines attributes a 22% revenue increase to the branded fare approach.

A guest article by Jay Sorensen of IdeaWorksCompany on how branded fares are generating profits for airlines. Frontier Airlines attributes a 22% revenue increase to the branded fare approach.

Marrying merchandising and customer loyalty – arguably the holy grail of the modern airline. But how can they do it effectively and where does it head next?

More impact, higher margins — for top retailers, there’s method to their ancillary sales, says Amadeus and IdeaWorksCompany.

Airline merchandising and loyalty share a common objective to maximize profitability by delivering the desired branded traveller engagement and experience.

Airlines raked in ancillary revenues of at least $22.6 billion in 2011, says the latest joint study by Amadeus, a global distribution system, and IdeaWorks, a research firm. US airlines led the world by generating about 11 percent of their income from ancillary revenue.

Confession: when looking for a suitable title for a new report, I deliberately chose “shocking” to attract attention to the topic.

GRS – that’s the new acronym being adopted to describe global distribution systems and their evolution – admittedly by the GDS themselves.

It has come to this for airlines: To succeed carriers should consider following Spirit Airlines’ lead and compete on price alone, charge fees for overhead bin space and other amenties, avoid weak-kneed customer service, etc.

Travel agents could boost airline ancillary revenue threefold via technology being integrated by the global distribution systems and other airline system suppliers

Banish how it used to be carried out – travel inspiration and searching for products has changed immeasurably as consumers find new ways of finding the perfect trip.

Do you understand the true costs of travel payments, how to reduce your exposure to credit card fraud and surcharges or how virtual cards work?

Discussing recent hot topics such as the TripAdvisor-Jetsetter acquisition, hotel wifi, Wordpress and hotels, mobile design and user experience.

Ancillary services are here to stay, so how do travel companies and airlines develop their technology and relationships so that merchandising can work for everyone?
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