EasyJet modifies distribution channels:
The internet has enabled major airlines to reduce their distribution costs. In addition to the savings from selling directly to their customers online, they have restructured their compensation schemes with both travel agencies and GDSs. That situation will contribute to evolve as airlines pressure travel agencies and GDSs to further reduce costs. So, for EasyJet not to offer corporate deals and discounts is a logical decision. It will join Sabre to increase distribution channels only without changing its other marketing variables.
As a result of the evolved market conditions, many GDS operators are reinventing themselves in order to stay relevant as distribution providers. In addition to expanding and diversifying their products and services, their focus is on reducing internal costs and finding ways for the costs to be borne by users, not the airlines.
Email: management@ultraconsultants.net
Date: 17 October 2009 commenting on http://www.abtn.co.uk/
The internet has enabled major airlines to reduce their distribution costs. In addition to the savings from selling directly to their customers online, they have restructured their compensation schemes with both travel agencies and GDSs. That situation will contribute to evolve as airlines pressure travel agencies and GDSs to further reduce costs. So, for EasyJet not to offer corporate deals and discounts is a logical decision. It will join Sabre to increase distribution channels only without changing its other marketing variables.
As a result of the evolved market conditions, many GDS operators are reinventing themselves in order to stay relevant as distribution providers. In addition to expanding and diversifying their products and services, their focus is on reducing internal costs and finding ways for the costs to be borne by users, not the airlines.
Email: management@ultraconsultants.net
Date: 17 October 2009 commenting on http://www.abtn.co.uk/
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