Travel Software for Travel Agents, TMCs, Airlines and Tour Operators

Whitepaper

 

Download the “Winning the Battle for Customer Ownership” whitepaper.

The whitepaper was written by Norm Rose from Travel Tech Consulting. Norm is a travel industry veteran with 28 years of hands-on experience.


 Table of content:

  • Who Owns the Customer?         
  • Defining Customer Ownership   
    o  Holiday Sales - The Key to Customer Insight        
  • Ancillary Sales a Key to Airline Profitability            
  • The Challenges for Airlines Selling Ancillary Land Services             
    o  Is Selling Ancillary Holiday Services Core to an Airline’s Business?              
    o  Influencing More Direct Sales    
    o  Is the Investment to Launch Ancillary Holiday Sales Worth It?     
    o  Implementing an Effective Holiday Solution        
  • Gaining Customer Insights          
    o  How Can Ancillary Holiday Sales Provide a 360o View of the Customer? 
    o  Customer Lifetime Value             
    o  Why Airlines Need to Implement Ancillary Holiday Sales Today  
  • Summary            


Who Owns the Customer?

Most airlines don’t own their customers. How can this statement be true given the fact the airlines invented loyalty programs? For years airlines have used mileage rewards to entice customers to choose their carrier. The all-familiar phrase uttered by flight attendants daily across the globe, “Thank you for choosing XYZ airline,” is standard, but does airline choice truly represent customer ownership? The answer is no. Passengers can express preference for a carrier and may be driven to stay with that carrier based on rewards, but customer ownership is a more comprehensive term. Customer ownership means having an intimate relationship with passengers, understanding preferences and anticipating needs. Customer ownership means continuous engagement where an airline offers a variety of services throughout the trip lifecycle and lifetime of the customer. Airlines are in a constant battle not only with other carriers for customer ownership, but with online and offline travel agents. This is reflected in the ongoing struggle to increase direct bookings to a carrier’s website. If the online travel agent wins the battle for customer ownership, not only could the traveler buy a package that features a different carrier, but losing this battle means higher distribution costs and lower marginal profits for the airline.
In today’s highly competitive and connected environment, reliance on frequent flyer rewards and data alone limits an airline’s ability to dynamically manage customer relationships. In fact, within the travel value chain, travel distributors often have greater insight into preferences which can lead to greater share of the traveler’s wallet and customer ownership.

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El Al: There is excellent cooperation

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40-second experiment on customer ownership