xft : « aérien – lcc, à la rencontre des nouvelles offres des compagnies et besoins...
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EXCHANGE FOR TRAVELAssociation 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
Martijn van SchalkwijkDirector Products & Solutions
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 79.32 Air France - KLM 76.43 Lufthansa 74.74 Easyjet 58.45 British Airways 37.66 Air Berlin 33.37 SAS 25.88 Alitalia 24.39 Aeroflot 17.7
10 Norwegian 17.7
LCCs represent 35% of PAX carried by the top 10 airlines in Europe…
Stagnant LCC capacity – Western Europe
Growing LCC capacity – Eastern Europe
Hybridization
Convergence of airline models
LOW COST
ULTRA LOW COST
REGIONAL
TRADITION
AL
$49bn global
ancillary revenues in
2014
North Amer-ica 37.5%
Europe 29.9%
Asia-Pacific 22.4%
Middle East - Africa 6.0%
Latin Amer-ica 4.2%
Ancillaries – revenues by region
Price is obviously a key consideration for flight planning
Offering the lowest available fare is a key measure of search performance…
…but it is not the only thing that should be considered when evaluating performance
Series151%
55%
52%
47%
42%
Price
Most convenientflight times
Fewer stops / better
connectionsAirport location
Past experience with airline
Features rated “extremely important”
when choosing airline tickets
leisure travelersbusiness travelers
Source: Google – The air traveler’s road to decision
Series1 74%
42%
41%
37%
31%
The lowest fare is not always the most convenient
How does an 8 hour stopover with a 2 year old after getting off a 12 hour flight sound?
Airlines are mastering the art of upsell
Frontier Airlines:
22% revenue increase Air Canada:
47% of domestic
consumers chose
a higher branded fare
• Basic fares allow scheduled carriers to compete directly on price with LCCs
• Applying retail psychology by assigning a simple price point to a better bundle of amenities
And created a more complex product most clearly presented on their own site
How airlines present their offering…
How OTAs present the offering…
And has the potential to influence the online landscape…
“The evolution of airline products and merchandising
is also contributing to a major shift in online air
sales…
ancillary distribution strategies are pushing
OTAs’ air bookings – and their share of online air –
down at an unprecedented rate.”
Source: PhoCusWright 2013
US online air spend (US$B)
46 57
18 17 Airline via OTA
Airline website
In the US, the gap between the airline
websites and OTAs is widening
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 faresSource: WTAAA/IATA NDC
Awareness Survey October 2015
Travelport – ‘Direct merchandising’ made real today within the indirect channel
Improvedfunctionalityandcontent access
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