Pegasus – Distribution strategy as a Low Cost Carrier Güliz ÖZTÜRK, SVP Commercial October 2012
Pegasus and innovation innovation‌. ‌. New dynamics in the scheduled market First low cost airline in Turkey Low and dynamic pricing model Operational focus on on on--time departures First unbundled product offering in Turkey
Pegasus Model A Network Low Cost Carrier – 24 % transit guests on international flights (2011) Our website - flypgs flypgs..com - is our main channel Pegasus Plus; Plus; Frequent Flyer Programme Ancillary focused approach Codeshares Cargo business
22 domestic destinations...
59 cities, 25 countries‌
Our Distribution Strategy Multi channel distribution strategy Work with all distribution channels in Turkey and in abroad Focus is on “web� flypgs.com flypgs.com High emphasis of flypgs branding in all communication fields Offline communication abroad Push sales through web only promotion mechanism,, SEM, SEO and Google mechanism display network campaigns
Our Distribution Strategy B2B, 50% of our sales are generated through this channel Platforms are: are: Own agency portal GDS Affiliates OTA’s
What is the benefit of Multi channel distribution Strategy ? To reach different customer segments
What about the costs costs? ? Covered by the customers together with the seat fare
Why early predictions of 80% direct sales were not realized? realized ?
Direct sales improvement: improvement: GDS, GDS,travel travel agency
Online travel agencies’ agencies’ efficiency Customers who prefer offline channels Question is how big will be this segment and for how long long??
How will be the equation in 2016? Importance of technological improvement Budgets and affordability Direct sales will grow Future driver: driver: Cost Minimizing costs for AIRLINES
Our business model vs. distribution Continue on multi channel distribution Targeting the customer more precisely and understanding the needs Focus on WEB and MOBILE Unbundled and rere-bundled products
We didn’t start aviation in Turkey, but we transformed it! Thank you