WorldConnect 2012 Day 1 session 2 - United Chris Amenechil

Page 1

25 October 2012

Chris Amenechi, VP Merchandising & Distribution

Annual Airline Distribution Conference

New distribution tools in practice


€€

Cost

2

€€€

Agency/GDS Airline

30 Days

Manage Booking

€€€€

Airline

1 Day

Flight

Cost burden is disproportionate to customer engagement

Ancillary Opportunities

€€€€

Agency/GDS

Entity

Margin

1 – 7 Days

Ticket Purchase

Time Spent

Shopping

Customer Engagement Cycle

€€

€€€

Agency/Airline

5 Days

Post Flight

Distribution needs to be viewed as more than shopping for and selling a ticket


3

Content Provider

Content & Commissions

3RD Party

Travel Agent

Historical reliance on third parties brought customers, but sacrificed brand identity


4

• Hulu • BBC.com • Sky Cable

• • • •

United.com Meta Agency OTA

Content distribution has become more fragmented


5

1980’s

Proprietary Systems

1990’s

Industry Standard

Case Study: Corporate Email

2000’s

Emerging Platforms

2010’s

MultiSource/MultiPlatform

Distributors must evolve to survive in a fragmented world


6

Self Service/Mobile Tools

Social Networks

Payment Platform

Market Places

Content Aggregation

This evolution is occurring in all categories


7

Publisher Control

Limited Publishers/ Distributors

Example: Music Sales

• •

Free Sharing No economics

File Sharing

• Access more users at lower costs and greater control

• •

iTunes Self created content Smaller labels Singles sale

Fragmentation with some boundaries benefits providers and nimble intermediaries


8

Visiting Family & Relatives

Business

Family Vacation

Customer Segment

United.com Agency United Meta Reservations OTA United Airport

United.com United Reservations United Airport

Customer Touch Point

Next Generation Distribution Platform

Cobranded Site:

United Site:

Agency X

Customer Experience

Content must be provided in a structured way to control brand and experience


9

Closed

• Consider how content is re-packaged

• Tailor content by user, not platform

Open Hybrid

Successful content access model creates win-win for users and suppliers


10

Thank you


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