Over the past few decades, airline travel has expanded significantly throughout the world exponentially increasing competition throughout the industry. Not only do airlines have greater choice of physical aircraft options, there is continuous review of how airlines interact with customers, how they give greater recognition to them, and provide products and services that customers prefer.
The advent of GDS allowed travel agents direct access to the airline reservation system. Over time, there has been a massive and expansive change in how airlines use alternative technologies (Internet, Mobile phone access) to distribute products directly to customers, how they recognize and promote services to key customers via targeted loyalty programs and personalized offerings, and how to provide comprehensive products and services to customers by forming relationships and alliances with other industry partners.
There are now a multitude of options for airlines to consider in order to position their products and services prominently to their loyal customers as well as ability to attract new customers.
The team in Chavali Consulting has had active involvement in all industry developments well before the launch of GDSs and maintains focus on how things continue to change in order to present a clearer picture of the future landscape.
Core Business Functionality
The core element of an airline’s ability to reach customers is its own Passenger Service System, incorporating systems that provide reservations/ticking, inventory control and airport departure control systems, amongst others.
In the early stages, many airlines developed their own PSS that primarily met their own needs. Today there are many options available that can provide greater ability to interact with customers.Among our many areas of expertise,we have a solid background to provide the following business services:
Assessment of existing systems to support business initiatives
A thorough understanding is needed of how an airline has established an overall strategy, for example to what extent it has clearly defined its commercial, distribution, loyalty, interactions with other key players and customer interactions. This will establish as basis on which to assess to what extent existing systems and processes meet their objectives and where gaps in their strategy exist. While a key focus is on system capabilities and how each interacts with other systems, another key focus is on business teams, what information they provide to others, what information is lacking and how each interacts with other teams that need their data. Along with identifying system gaps, we will work to prioritize how each contributes to failing to deliver expected benefits and provide a blueprint and timeline on how these deficiencies can be resolved. Part of this plan is to provide ways to track whether system or process changes have delivered the expected results.
Assessment of alternate systems that can better meet the airline’s business needs
Where there is need to consider migrating to another passenger system based on the airline’s current and future expansive needs, we will provide assessment of other systems. This assessment will determine to what extent the airline’s business requirements are aligned in an alternate system, where there are gaps and how they may be resolved, what additional benefits can be achieved if using another system and key differences in functionality.
Support during migration activities
In advance of confirming migration to a new Passenger Service System, we will ensure all business functions and requirements have been clearly defined. Where these requirements can be provided in the new system, we will ensure ongoing review to ensure they will function as agreed. The same ongoing review will be applied to all functions that need to be developed in the new system in order to meet business requirements. During cutover activities, we can provide support to track issues that arise, identify how to resolve and ensure they are resolved quickly and satisfactorily.
Distribution
Distribution of an airline’s products and services is essential to achieve success. While the landscape in the past was fairly limited, today there are multiple options available to reach customers. We can assist to identify key customers in key markets and where new opportunities exist. Our experience extends to all distribution options, both direct and indirect, and with a diverse range of airline requirements. As no two airlines have the same customer base and market reach, we will provide guidance to align the most cost-effective options to maximize the ability to interact with customers. With an ongoing industry shift to dealing with customers directly, we will give focus to online and mobile access, while also assessing to distribution options via travel agents, call centers, and others. In order to have a comprehensive understanding of distribution costs, we can assess all elements of these costs to determine which are the key drivers of costs and provide recommendations how they can be controlled more effectively.
New Distribution Capability
The travel industry is moving toward more dynamic presentation of its products and services, largely focused on differentiating the vendors offerings from those of competitors but also focused on the value of individual customers.
An IATA initiative available to all industry players, NDC gives vendors the ability to present unique offerings to target customers rather than a static presentation available to all customers equally. This ability depends on recognizing loyal customers and presenting them with products and services differentiated from similar products and services to customers that have a different relationship with the vendor.
Differentiated products can include special fares, free baggage, airport lounge access, discount on future travel plans, etc. NDC transforms the way products are retailed to customers and can be differentiated by customer types, such as corporate, leisure or business travelers as well as how vendors interact with intermediaries. We can help identify where differentiated products can be offered to distinct customer targets and types.
An IATA initiative available to all industry players, NDC gives vendors the ability to present unique offerings to target customers rather than a static presentation available to all customers equally. This ability depends on recognizing loyal customers and presenting them with products and services differentiated from similar products and services to customers that have a different relationship with the vendor.
Differentiated products can include special fares, free baggage, airport lounge access, discount on future travel plans, etc. NDC transforms the way products are retailed to customers and can be differentiated by customer types, such as corporate, leisure or business travelers as well as how vendors interact with intermediaries. We can help identify where differentiated products can be offered to distinct customer targets and types.
E-Commerce
An effective online presence is essential in today’s commerce. We can review a customer’s existing internet, mobile phone and other online facilities to ensure they are user-friendly and customer-focused and changes that will improve customer interactions and revenue generation.
Different markets may have unique needs, dependent on facilities in each market. For example, to what extent internet and mobile phone options are available and used.
Payment options can also vary by market and we will help align best options to facilitate settlement of product costs.
Different markets may have unique needs, dependent on facilities in each market. For example, to what extent internet and mobile phone options are available and used.
Payment options can also vary by market and we will help align best options to facilitate settlement of product costs.
Revenue Management
A review of an airline’s fares and pricing strategy can help identify to what extent it is meeting commercial objectives and where other options can be adopted.
Loyalty Programs
We work with airlines to ensure clear understanding of how loyalty programs works, their revenue costs and benefits and how they can leverage new products and services.
We will help to identify partners that are mutually beneficial, both to participate in the airline’s own program and where joining other programs would bring benefits. Such partnerships are not limited to other airlines but can include hotel, car rental, tour operators, credit card services and other wide-ranging partner options.
We will help to identify partners that are mutually beneficial, both to participate in the airline’s own program and where joining other programs would bring benefits. Such partnerships are not limited to other airlines but can include hotel, car rental, tour operators, credit card services and other wide-ranging partner options.