WorldConnect 2012 Day 1 session 2 - Vueling Alex Cruz

Page 1

How airlines are utilizing new vs. traditional distribution tools? Alex Cruz, CEO, Vueling APG World Connect 25 Oct. 2012


How airlines are utilizing new vs. traditional distribution tools?

Is it a future of hybrid airlines? What is a hybrid airline? Does it matter? Is there a single formula for everyone?


INDEX

A.

B.

Vueling

Distribution

C.

D.

E.

What do people want?

Moving forward

What are we going to talk about next year?


A. Vueling

1.Who are we? 2.Business model 3.Future


Who are we?

59 aircraft

Only profitable airline south Europe 74 main airports

14 bases

50 million passengers

Connecting at BCN


Who are we?


Business model

Vueling, the 2nd airline with the lower costs in Europe Future . . .

Total CASK ex-fuel 2011 (câ‚Ź) 7,16

6,89

4,18

4,36

4,58

o It is reasonable that this cost line will improve further 20122014

2,22

Ryanair

o Unlike its LCC rivals, Vueling still has several levers to lower its costs further, e.g. fleet costs

Vueling

easyJet

Norwegian

AirLingus

airBerlin

‌ and traditional airline experience!


New Generation business class

Business model

Empty middle seat Extra pitch Reclining seat Guaranteed Rack Space Snack Priority boarding Exclusive counters Total fare flexibility On board trolley + bag


Future

100 Destinations from Barcelona (1st BCN airline)

International expansion with more basis across Europe BCN

Business focus and continuous growth


B. Distribution

1.Best model 2.Historical evolution of channels


Best model For the first time in the history of the awards, one company – Vueling, has won four of the eight Budgie awards

• Best Airline of the Year • Best Business Traveler Offering • Best Sales Strategy • Best Distribution Strategy


Historical evolution of channels Direct / Indirect Sales Mix 100%

50% 50% 2006

2007

2008

2009

2010

2011

2012

Channel Distribution (’12) Direct Channels

Indirect Channels

Mainly web (Price Sensitive Customers)

Agency: (High value customers)

vueling.com Iberia Agency OTAs Special Ops Cust. Care


C. What do people want?

Different things at different times

1. Business 2. Leisure


Business

No hassle

All inclusive

Punctual


Leisure

Price, price, DIY, price ...


D. Moving forward

1.Need to be everywhere

2.Adapting the product to the consumer


Need to be everywhere

Mobile Apps

GDS

Web

Codeshare

Groups/TTOO

Airports

Call Center

OTAS


Adapting the product to the consumer

Bundled fares

Cheap tickets through the web

GDS indirect channels

Guaranteed Rack Space (14Kg) Snack on board included 1st row with extra pitch, reclining seat and free middle seat Preferential boarding

Seat Advance/Standard

Exclusive counters at MAD and BCN

Included baggage (23kg)

Total fare Flexibility

Advance your flight the same day

Refund permitted Included bag (23kg) + on board trolley

Click & Fly Advance your flight the same day

Typical Vueling fare: Free check-in online, free mobile application ...

IB points

Basic Fare

Optima Fare

Click & Fly IB points

Excellence Fare


E. What are we going to talk about next year?


What are we going to talk about next year?

GDS, like every year

Consolidation of intermediates, like most recent years

Google and ITA


Vueling Future

Pan-european, More geographies

Increase connections with other carriers

More premium


VUELING AIRLINES SA | PARQUE DE NEGOCIOS MAS BLAU II - PL. DEL PLA DE L’ESTANY, 5 | 08820 EL PRAT DE LLOBREGAT - BARCELONA· SPAIN


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.