25 October 2012
Chris Amenechi, VP Merchandising & Distribution
Annual Airline Distribution Conference
New distribution tools in practice
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Cost
2
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Agency/GDS Airline
30 Days
Manage Booking
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€€€€
Airline
1 Day
Flight
Cost burden is disproportionate to customer engagement
Ancillary Opportunities
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Agency/GDS
Entity
Margin
1 – 7 Days
Ticket Purchase
Time Spent
Shopping
Customer Engagement Cycle
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€€€
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