I remember a reporter from a major newspaper asking me last year, “Do you think this ancillary revenue stuff is going to last, or is it merely a fad?” I was surprised by the question back then, and today it’s merely an amusing memory. The same reporter might ask today, “So do you think baggage fees will be charged by airlines all over the world?” The reader of this Guide shouldn’t be surprised by my answer . . . it is a definite “yes.”
It won’t be long before British Airways, Qantas, and Japan Airlines start charging fees for checked baggage. Why? Because it makes perfect economic sense and the precedent established by oneworld partner American Airlines will be too hard to ignore. As you will read later, oneworld has already set the mechanism in place to facilitate a la carte pricing initiatives between alliance partners.
You will also read about Gordon Gekko, who is the corporate-raider character from the 1987 American movie “Wall Street.” The part was superbly played by Michael Douglas as the ruthless and self-centered financier who attempted the takeover of fictitious Blue Star Airways. The movie revolves around his “greed is good” speech. This rant include nuggets of wisdom such as, “Greed clarifies, cuts through, and captures the essence of the evolutionary spirit.”
He uses words here that are central to our ancillary revenue movement: clarifies and evolutionary. These words explain the magic of how we are serving consumers. A la carte pricing clarifies the value of services for the consumer. This allows them to pick and choose services and features based upon the desire to maximize convenience or minimize price.
The evolutionary part is represented by carriers that choose this path and those that don’t. US carriers faced a moment of truth during 2008 when they decided between baggage fees or financial peril. The Darwin-inspired concept of evolve or die will likely be faced by more and more airlines during 2009. Ancillary revenue is a crucial part of the evolutionary process. Ignore it at your own risk.
Click to Purchase Guide
Conferencia de Ingresos para Líneas Aéreas (CILA)
El nuevo paradigma de negocios
06/07 de Mayo 2010
Buenos Aires, Argentina
Nos complace presentar la primera conferencia en español para la industria aérea latinoamericana sobre “El Nuevo Paradigma de Negocios” donde se presentarán modelos de optimización de ingresos.
Pero, ¿qué es este “Nuevo paradigma de negocios”? Los márgenes de ganancias de las compañías aéreas apenas rozan el 2% en buenos períodos financieros, de manera que transportar a un pasajero de un “Punto A” a un “Punto B” no es suficiente para que una aerolínea sea rentable en el largo plazo. Si bien la mayoría de las compañías aéreas en Latinoamérica figuraban entre las más rentables durante esta última crisis económica, para mantener una constante rentabilidad, las aerolíneas de la región tienen que desempeñar un rol más activo como minoristas, haciendo más eficientes los canales de distribución y atraer la atención de su público objetivo de pasajeros a fin de generar ventas que no se originen solamente en pasajes aéreos.
Algunos de los temas que se presentarán durante CILA incluyen: La generación de ventas que no provengan de los pasajes aéreos; La Generación de ingresos provenientes de honorarios “a la carta”; La reducción de costos a través del uso de formas de pago alternativas; Los productos y servicios que pueden venderse a bordo de los vuelos en el mercado Latinoamericano, Incremento de ventas a través de las redes sociales; La maximización de ventas a través del programa de fidelización y muchos más...
mas información
There is no Substitute for face-to-face Networking
Ai Networking Cocktail - Amsterdam
"The New Business Model: Retailing Beyond Travel"
We live in challenging economic times! The forward-thinking businesses that will grow and prosper in this climate are those that increase face-to-face marketing time with current and potential customers and partners.
However, this same poor economic climate has reduced the travel budgets of airline/travel industry executives, making every networking opportunity more valuable to them. In this context, Airline Information and SeaMountain have agreed with Adyen to co-organise a complimentary cocktail reception and discussion forum for airline & travel industry professionals in Amsterdam on the 11th of February 2010.
The evening event will serve to bring together airline and travel industry professionals for high-level networking, as well as to discuss the critical bottom-line profit issues for a rapidly changing travel industry. This event is part of an ongoing series of “Ai/SeaMountain Networking Cocktails” that are tailored for airline industry executives in major hub cities worldwide.
Registration is completely free of charge but we recommend that you act quickly as our venue is limited in capacity to 50 people. Please limit two attendees per company.
Ai Networking Cocktails are Free!
New Events will be joining our Classic line-up in 2010
Ai Continues it's tradition on "First-Mover" events and unsurpassed value for airlines and suppliers
This year Airline Information will continue an aggressive schedule of events and introduce new conferences and innovative agenda and delegate interaction formats.
Stay tuned to AiGlobal.org for updates on our new 2010 lineup. Classic events such as FFP and ARAC will return under the “Mega Event” banner and so will the unmatched “a-la-Carte Pricing” conference.
Our logistics team has been working overtime during the holidays to design a fresh new approach to conference agendas and onsite room layouts – all in an effort to deliver more quality for less.
It won’t be long before British Airways, Qantas, and Japan Airlines start charging fees for checked baggage. Why? Because it makes perfect economic sense and the precedent established by oneworld partner American Airlines will be too hard to ignore. As you will read later, oneworld has already set the mechanism in place to facilitate a la carte pricing initiatives between alliance partners.
You will also read about Gordon Gekko, who is the corporate-raider character from the 1987 American movie “Wall Street.” The part was superbly played by Michael Douglas as the ruthless and self-centered financier who attempted the takeover of fictitious Blue Star Airways. The movie revolves around his “greed is good” speech. This rant include nuggets of wisdom such as, “Greed clarifies, cuts through, and captures the essence of the evolutionary spirit.”
He uses words here that are central to our ancillary revenue movement: clarifies and evolutionary. These words explain the magic of how we are serving consumers. A la carte pricing clarifies the value of services for the consumer. This allows them to pick and choose services and features based upon the desire to maximize convenience or minimize price.
The evolutionary part is represented by carriers that choose this path and those that don’t. US carriers faced a moment of truth during 2008 when they decided between baggage fees or financial peril. The Darwin-inspired concept of evolve or die will likely be faced by more and more airlines during 2009. Ancillary revenue is a crucial part of the evolutionary process. Ignore it at your own risk.
Click to Purchase Guide
Conferencia de Ingresos para Líneas Aéreas (CILA)
El nuevo paradigma de negocios
06/07 de Mayo 2010
Buenos Aires, Argentina
Nos complace presentar la primera conferencia en español para la industria aérea latinoamericana sobre “El Nuevo Paradigma de Negocios” donde se presentarán modelos de optimización de ingresos.
Pero, ¿qué es este “Nuevo paradigma de negocios”? Los márgenes de ganancias de las compañías aéreas apenas rozan el 2% en buenos períodos financieros, de manera que transportar a un pasajero de un “Punto A” a un “Punto B” no es suficiente para que una aerolínea sea rentable en el largo plazo. Si bien la mayoría de las compañías aéreas en Latinoamérica figuraban entre las más rentables durante esta última crisis económica, para mantener una constante rentabilidad, las aerolíneas de la región tienen que desempeñar un rol más activo como minoristas, haciendo más eficientes los canales de distribución y atraer la atención de su público objetivo de pasajeros a fin de generar ventas que no se originen solamente en pasajes aéreos.
Algunos de los temas que se presentarán durante CILA incluyen: La generación de ventas que no provengan de los pasajes aéreos; La Generación de ingresos provenientes de honorarios “a la carta”; La reducción de costos a través del uso de formas de pago alternativas; Los productos y servicios que pueden venderse a bordo de los vuelos en el mercado Latinoamericano, Incremento de ventas a través de las redes sociales; La maximización de ventas a través del programa de fidelización y muchos más...
mas información
There is no Substitute for face-to-face Networking
Ai Networking Cocktail - Amsterdam
"The New Business Model: Retailing Beyond Travel"
We live in challenging economic times! The forward-thinking businesses that will grow and prosper in this climate are those that increase face-to-face marketing time with current and potential customers and partners.
However, this same poor economic climate has reduced the travel budgets of airline/travel industry executives, making every networking opportunity more valuable to them. In this context, Airline Information and SeaMountain have agreed with Adyen to co-organise a complimentary cocktail reception and discussion forum for airline & travel industry professionals in Amsterdam on the 11th of February 2010.
The evening event will serve to bring together airline and travel industry professionals for high-level networking, as well as to discuss the critical bottom-line profit issues for a rapidly changing travel industry. This event is part of an ongoing series of “Ai/SeaMountain Networking Cocktails” that are tailored for airline industry executives in major hub cities worldwide.
Registration is completely free of charge but we recommend that you act quickly as our venue is limited in capacity to 50 people. Please limit two attendees per company.
Ai Networking Cocktails are Free!
New Events will be joining our Classic line-up in 2010
Ai Continues it's tradition on "First-Mover" events and unsurpassed value for airlines and suppliers
This year Airline Information will continue an aggressive schedule of events and introduce new conferences and innovative agenda and delegate interaction formats.
Stay tuned to AiGlobal.org for updates on our new 2010 lineup. Classic events such as FFP and ARAC will return under the “Mega Event” banner and so will the unmatched “a-la-Carte Pricing” conference.
Our logistics team has been working overtime during the holidays to design a fresh new approach to conference agendas and onsite room layouts – all in an effort to deliver more quality for less.
