redefining airline retail sales for agents and planners

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Redefining Airline Retail Sales for Travel Agents Webinar 23 July 2013

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What is the best way to sell consumers and business travelers the airline experience? Where do the best sales techniques intersect with the most efficient merchandising tools? Furthermore, how can travel agents, corporate travel planners and other travel buyers learn more about the newest airline merchandising technology? With IATA’s controversial NDC project as backdrop, Tnooz and Travelport present a FREE webinar to answer these and more questions. Travelport and EasyJet led a discussion of Travelport’s Merchandising platform and the opportunities it presents airlines, agents and planners. The webinar investigates: Transformation of indirect distribution into a contemporary retail channel An airline’s delivery of content, ancillaries, product descriptions and fare families Merchandising airline product through visually appealing tools rather than codes and commands Panelists: Andrew Hodges, director of sales, distribution and business, EasyJet Derek Sharp, managing director for global distribution sales and services, Travelport

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Page 1: Redefining airline retail sales for agents and planners

Redefining Airline Retail Sales for Travel Agents

Webinar23 July 2013

Page 2: Redefining airline retail sales for agents and planners

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Kevin MayEditor & Moderator

Gene QuinnCEO & Producer

Your hosts

Page 3: Redefining airline retail sales for agents and planners

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Derek SharpTravelportManaging DirectorGlobal Distribution

Sales & Services

Andrew HodgeseasyJetDirector of Sales,Distribution & Business

Your panelists

Page 4: Redefining airline retail sales for agents and planners

Derek Sharp, Travelport23rd July 2013

Airlines & agents:redefining retail

Page 5: Redefining airline retail sales for agents and planners

Different paths to growth, ancillaries and consumer needs

Spirit Airlinescharges

for overhead bags

Customers demand recognition

Delta rolls out Economy

Comfort seats to agencies

worldwide

…codeshare partnerships

BA’s A380s & 787s

land in Heathrow

How Emirates grows…

46

240

How Etihad grows…

…aircraft on order

Page 6: Redefining airline retail sales for agents and planners

New players, skies opening up, agents must ‘sell’

Revenue from ancillaries 45 billion by 2015

European LCCs

increasing capacity @

14 times

the rate of legacy carriers:

85%

of agents want to sell ancillaries

Indian government accepts ancillary charges

Qantas and Virgin Australia

domestic dog fights

Page 7: Redefining airline retail sales for agents and planners

Airlines want to differentiate: agents need the knowledge

Who charges for bags?Who doesn’t?How much?What’s the weight limit?

Allowance policies?

4” more leg room?6” more leg room?50% more recline?30% more recline?

This is the inside of what airline?

Page 8: Redefining airline retail sales for agents and planners

TravelportMerchandisingPlatform

TRAVELPORT MERCHANDISING PLATFORM

Page 9: Redefining airline retail sales for agents and planners

airline.com

Industry centricCommon to all airlines

Airlines have choice: no technology restrictions

FlexibleDynamicCustomer centricUnique to your airline

Corporations

OTAs

Travel Agencies

Social MediaWeb

Airline Agent

Mobile

API

Airlines Choose The Right Approach For Them

Industry Standards

Consistency for consumers across all channels

Page 10: Redefining airline retail sales for agents and planners

Travelport Merchandising Platform

Right information, at the right time: across all points of sale

A common workflow:across all points of sale

Sell all content:across all points of sale

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TRAVELPORT MERCHANDISING PLATFORM: Aggregated Shopping

f

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TRAVELPORT MERCHANDISING PLATFORM: Ancillary Services

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TRAVELPORT MERCHANDISING PLATFORM: Rich Content & Branding

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Page 14: Redefining airline retail sales for agents and planners

THE FUTURE IS HERE TODAY

Page 15: Redefining airline retail sales for agents and planners

Enable agents to access all airline content in their normal workflow in anyway that they choose

Enable airlines to distribute their products in a new dynamic way

Page 16: Redefining airline retail sales for agents and planners

easyJetAndrew HodgesDirector of Sales, Distribution & Business

July 2013

Page 17: Redefining airline retail sales for agents and planners

Key easyJet facts5.3

£bn market cap*.

61FTSE 100 rank*

22 Bases

211Aircraft

(Airbus A319/320)

640Routes

* As at 18th July 2013

60m passengers pa

10m business

passengers pa

Page 18: Redefining airline retail sales for agents and planners

Europe’s no. 1 air travel network

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Leading punctuality

Initiatives launched to drive operational performance and minimise disruption included:

• The easyJet turn project• On-going twice daily

operational calls• Investment in easyJet’s

operations control centre

Page 20: Redefining airline retail sales for agents and planners

Some recent product improvements

Allocated seating

Fast track security for flexi

customers

Page 21: Redefining airline retail sales for agents and planners

2121

Flexible Fares

£100 more£ 50-100 more£ 20-50 more£ 0-20 more£ 0-20 cheaper£ 20-50 cheaper£ 50-100 cheaper£100+ cheaper

Standard Fares

£100 more£ 50-100 more£ 20-50 more£ 0-20 more£ 0-20 cheaper£ 20-50 cheaper£ 50-100 cheaper£100+ cheaper

We are cheaper than our competitors*:

• standard fares - on 80% of occasions

(by more than £100 on 55% of flights)

• flexible fares - on 92% of occasions

(by more than £100 on 65% of flights)

* Source: independent market survey, 2012

easyJet

easyJet

Relentless focus on delivering value

Page 22: Redefining airline retail sales for agents and planners

Evolution of our Distribution strategy

easyJet & Travelport• Launched Jan 2008. All agents worldwide

• Challenge now to unlock full potential

Direct Sales: Contact Centre

Direct Sales: Web

Multi channel

Page 23: Redefining airline retail sales for agents and planners

Benefits of booking easyJet via GDSFor easyJet:

• strategy is to carry more, higher yielding business passengers

• GDS is the preferred channel for managed corporate travel

• GDS shopping and booking process for easyJet fares should be the same as booking high fare airlines

For TMCs/corporates:• standard booking processes improve operational efficiency

• simpler management of bookings

• easier access to lower fares

Page 24: Redefining airline retail sales for agents and planners

2424

Partnership with TMCs & Corporates

• Standard approach, tailored & managed by market

• Targeted incentives that drive incremental yield, not volume

• Range of products & channels to suit different needs

• Designed to make business travel easier and more affordable

Page 25: Redefining airline retail sales for agents and planners

easyJet for Business

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Questions ?

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Q & A

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Replay and presentation from today’s webinar will be available at www.tnooz.com

Please send your questions to [email protected]

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Thank you!