Ollie Quiniquini, Singapore (2009-10-20)

TRAVEL agents are moving from airlines' cost columns to revenue streams as changing economic and business environments spur the latter from legacy airlines to low cost carriers (LCCs) to prioritise their distribution mix.

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Monday . June 17 . 2019
         
 
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Reporting live from ITB Asia 2009, Singapore
 

Agents gain ground

Ollie Quiniquini, Singapore (2009-10-20)

TRAVEL agents are moving from airlines' cost columns to revenue streams as changing economic and business environments spur the latter from legacy airlines to low cost carriers (LCCs) to prioritise their distribution mix.

Gordon Locke, vice president Airline Marketing and Strategy of the Sabre Travel Industry Group, said results of the company's 2009 Airline Industry Trends Survey (192 airline respondents) showed multi-channel distribution figuring prominently as a factor that would have a positive impact on business. With 67 per cent of respondents focusing on increasing revenue and reducing cost equally over the next 18 months, distribution mix came in second, at 12 per cent, as a primary tactic to increase revenue. Topping the list was revenue management at 44 per cent.

Locke noted that LCCs, many of whom started off as a pure online model, had begun engaging the agency channel. As more Asia-Pacific LCCs go longhaul, the cost of getting consumers to visit their website goes up. "The GDS model is the faster way to enter new markets, compete better with other models, capture new business and serve the customer."

- Read more in TTG Asia soon

 
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