The Future of Airline Distribution - Sabre Airline Solutions

The Future Of Airline Distribution - Sabre Airline Solutions

60% (see favorites)

The Changing Face of Airline Distribution

By Peter O'Connor, Associate Professor, IMHI, ESSEC Management School

Nov 2002

80%Changing Channels: Airline Distribution - Airline Weekly

100% to answer 3rd (question saved as a favorite) Ten Reasons Why Airline CMOs Need To Reevaluate Their - Navitaire

pricing and channel strategy

The combination of a company's pricing and channel strategy could ultimately determine the success or failure of the business. Classic Airlines as other companies must pay attention to these strategies without compromise. Distribution channels must be affordable and effective. This explains why distribution channels such as GDS are changing, analysts opinion is that reduction in fees would be an opportunity for GDS to win business already lost to the Internet and other low cost direct distribution channels. This further confirms that the best strategy must be affordable convenient and match passenger preferences and needs

Interdependence: The principle that economic decisions are interrelated such that the

consequences of a decision always spread beyond the immediate objectives of decision.

100% 2012 INFO Transport and Telecommunication, 2012, Volume 13, No 2, 159-166

Transport and Telecommunication Institute, Lomonosova 1, Riga, LV-1019, Latvia

M. Rebezova1, N. Sulima2, R. Surinov3

Diversifying Distribution Channels of the Core and Extra Services of Air Passenger

Transport

We have systematized the channels of distribution of air-passenger transport services and delivery

of the services to customers, i.e., passengers, as shown in Figure 2. Marked out are the direct channels

(zero level channels), i.e., the channels with no intermediaries involved, and multi-level channels that may

involve one or more intermediaries.

Zero level channel presupposes that the carrier sells its services through its own bureaus and

representative offices in the online and offline modes. The online distribution it carried out through

the carrier's homepage or web-portal. A web-portal is a complex website providing multi-services to

customers. The multi-level channels include the traditional logistic chains of a carrier's sales network -

"offline agents": <agent>; <agent - sub-agent>; <general agent - agent - sub-agent>. An agent's part may

be played by another carrier with whom the first carrier has concluded an interline agreement on modal

and multi-modal transportation, and who uses his own distribution channels to sell the first carrier's

services. It should be noted that agents usually have their own multi-level channels for distribution of their

own services.

"The online agents" are those selling flights and extra services only through travel sites. Expedia,

Orbitz, Travelocity are among the largest ones.

The travel-site business is developing dynamically. According to forecasts, the volume of travel

services booked online in the USA will grow from $86.6 billion (2011) to $110.7 billion (2014) [23].

Due to the development of the carriers' online sales, the number of agent businesses started decreasing

all over the world. Thus, the number of travel agencies in the USA decreased from 27 700 (2001) to