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5 sirens that could signal the wrong kind of change | EyeforTravel

For airlines, there are ‘sirens’ in fleet selection, in schedule strategy, marketing and distribution, operations and customer service – in every airline function. In fact, even in dynamic pricing – which has become more and more sophisticated across the industry — there are the wrong kinds of change. In airline pricing, for example, beware of the following potential ‘sirens’:

  1. System solutions, the ‘latest technology’. Often, airlines that embrace change do so by installing new systems, including state-of-the-art revenue management and CRM systems. However, new systems often require whole new processes – which have tremendous people issues, including new training and integration requirements. Often, the ‘best’ system doesn’t fit an airline’s specific competitive situation or its ability to attract the right skills.
  2.  Ancillary fees. A popular new strategy is new airline fees. However, too many fees can be confusing to customers. Ancillary success requires an integrated plan across functions, including pricing, RM, marketing, distribution and even operations. Distribution issues, in particular, have limited what some airlines can accomplish with ancillary fees.
  3. ‘Optimised’ channel strategy. The market wants consistent pricing and/or marketing across all channels but technology currently limits airlines’ ability to achieve this; and some airlines offer incentives or penalties for certain channels. ‘Optimised’ channel pricing is different for different airlines and needs to be consistent with other elements of strategy.

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5 sirens that could signal the wrong kind of change | Travel Industry News & Conferences – EyeforTravel testing.