Airline Direct Sales – What Next? Moderator
Tom Murphy
Yesterday – 1996 IATA AGM • “Distribution costs last frontier in cost reduction” • Full Service Airline Distribution Costs = 20% • Low Cost Airline Distribution Costs = 5% • Direct Sales Target = 80% in 10 years • “Middle Man Toast!”
Today • • • •
Full Service Airline Distribution Costs = 12% Low Cost Airline Distribution Costs = 5% Direct Sales = 40% Middle Man Alive and Healthy
Tomorrow - 2016
• • • •
Direct Sales Target = 60% Full Service Airline Distribution Costs = 10%? Achievable? Impact on Middle Man?
Speakers • Chris Phillips – MD Distribution Strategy, Delta • Dan Greaves – Strategy and Airline Distribution, Amadeus • Aleks Popovich – Senior VP, IATA • Guliz Ozturk – Senior VP Commercial, Pegasus • Jim Davison – CEO, Farelogix