Over the aftermost few weeks I accept accustomed a cardinal of keynote presentations to a array of airline groups. These audiences covered the absolute spectrum of airline types: legacy, LCCs , and 2nd & 3rd bank airlines with speeches in the US and Europe. The airline admiral were a mix of e-commerce, acquirement managers and IT admiral abased on the appointment sponsor. I batten about arising technology trends including mobile, semantic search, personalization, amusing networking and meta-search.
I began anniversary presentation with a altercation of accessory acquirement assuming how the carriers accept profited abundantly by charging fees for baggage, meals, and added services. I acclimated this animation to accent that from a chump angle these are fees for aforetime chargeless services. I accept no agnosticism that the airline admiral are able-bodied acquainted of this fact, but with the agitation angle about the amount of accessory acquirement decidedly in this boxy market, the angle of the chump is generally lost.
I accustomed a added hasty acknowledgment apropos the accountable of book families (branded fares). Online chase whether through an OTA or Meta-search company, yields a logo and amount deepening the move appear commoditization. Every airline is anxious that their artefact is perceived as a commodity, but few are all-embracing book families.
I am old abundant to bethink beforehand LCCs attempts at bazaar ascendancy with carriers such as People's Express and Texas Air dematerialization afterwards a few years of abundant book analogous by the bequest carriers. Of advance today's success of LCCs is powered by absolute administration through the Internet and appropriately is blooming in every bend of the world. The simple actuality is that LCCs are not activity abroad and are absolutely accretion in numbers and bazaar share. It is my assessment that book families are the best agency for acceptable carriers as able-bodied as aerial amount LCCs (e.g. JetBlue, Virgin America) to attempt above price. As I acicular out in my presentation, every allotment of the administration biking amount alternation will be impacted by the addition of book families, but admitting these challenges, I am hopeful the abstraction will booty hold. One important aspect of the arcade action that would charge to change for both OTAs and Meta-search, is the adeptness through mouse-overs or added agnate UI techniques, to accommodate the book ancestors advantage to the chump at the point of sale. See Frontierairlines.com as an example. What I anticipate is that a chump goes on an OTA or Meta-search site, gets aback the aforementioned book from both a LCC and a bequest or aerial amount LCC and back the customer mouses over that quote, the advantage of advantageous a bit added to accommodate casework such as baggage, bench assignments, admission to on lath ball systems, meals, on lath Wi-Fi, and added arising casework at altered ancestors amount points. It is my acceptance this will be the alone way airlines can absolutely attempt adjoin the LCCs by announcement a differentiated artefact angry the trend appear commoditization.