NEO IDEAS AND INNOVATION - BEST PRACTICES IN AIRLINES WEBSITES - Indra

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NEO IDEAS AND INNOVATION - BEST PRACTICES IN AIRLINES WEBSITES - Indra
NEO
IDEAS AND INNOVATION

1. BEST PRACTICES IN AIRLINES´
   WEBSITES
More trips, less money

The travel industry has radically changed during the last 10 years. The
economic context, the technological evolution and the customer’s profile     30% more travellers
have advanced in such a way that they have completely changed how we         2001 		              > 1,640 million passengers
travel, in general, and how we purchase those trips, in particular.          2009 		              > 2,178 million passengers
                                                                             Evolución del número de pasajeros de vuelos comerciales
Suppliers must adapt to this new market in order to become competitive.
                                                                             		                   2004     2005   2006    2007     2008   2009E    2010E
Between 2004 and 2007, the travel industry evidenced a significant           Passengers*          1888     2022   2124    2281     2271   2178     2276
                                                                             Crec. (%)		          14.9     7.0    5.9     5.9      0.8    -4.1     4.5
growth, mainly favoured by the economic prosperity. As an indicator, it is
enough to look at how the commercial flight passenger volume has grown.      Source: IATA. *in millions.

                                                                             Within this growth, the so-called “low-cost” companies gained special
                                                                             prominence so much so that, nowadays, two of the three most important
                                                                             companies per passenger volume at international flights worldwide are low-
                                                                             cost companies: Ryanair and Easyjet. Between 2001 and 2008, Ryanair and
                                                                             EasyJet experienced an average annual growth of their passenger number of
                                                                             30% and 33% respectively, against the 5% of the industry group.

                                                                                                  Airline ranking per passenger number at
                                                                                                  international flights

                                                                                                  Ryanair					                            57,647
                                                                                                  Lufthansa				                           42,151
                                                                                                  Easyjet					                            35,417
                                                                                                  AirFrance				                           32,508
                                                                                                  British Airways				                     29,054

NEO | E-BUSINESS TRAVEL BENCHMARKING RESUMEN
                                     EXECUTIVEEJECUTIVO
                                               SUMMARY
A different customer requires a
different strategy

This market evolution has been closely related to a change in the
customer’s profile.

The customer is getting more and more heterogeneous, dynamic and in-
formed; therefore, it becomes difficult to increase customer loyalty.

Companies (airlines and consolidators) need to make a constant effort to
adapt themselves to new demands, high competitiveness and new infor-
mation tendencies. All that within a common nexus: Internet.

                                                                           NEO | E-BUSINESS TRAVEL BENCHMARKING EXECUTIVE SUMMARY
Internet, the new main sales
channel

During the last years, a transformation within the trip sales         In Europe, on the other hand, Internet has almost doubled its            60% of
channel has been taking place. Internet is every day gaining
prominence as a sales channel and, in the USA, it has already
                                                                      market share regarding trip purchases and it will soon become
                                                                      the principal channel through which purchases can be perfor-             the trip
taken up almost 60% of the purchases.                                 med, as well.
                                                                                                                                               purchases
Percentage of online-gained income upon the total                     The online channel for airlines and consolidators has already            are carried
income amount for the travel industry                                 become part of the lives of millions of travellers all over
                                                                      the world. They use Internet from the moment they begin                  out through
		                 USA       Europe Asia-Pacífic                      thinking about travelling, as they can have access to wide
                                                                      and documented destination and service offerings, up to the              Internet
2006		             49%       23%       9%                             moment of coming back home, when they wish to share their
2007		             52%       27%       11%                            experiences with their friends and relatives.
2008		             51%       33%       14%
                                                                      For this reason, the Web has become one of the main sources
2009E		            56%       37%       18%                            of competitive advantages for airlines, travel agencies and
2010E		            59%       43%       21%                            consolidators. It is a source for saving costs and improving
                                                                      productivity, but, above all, it is a tool for distinguishing oneself.
Source: http://www.newmediatrendwatch.com/world-overview/91-online-
travel-market?start=1

NEO | E-BUSINESS TRAVEL BENCHMARKING EXECUTIVE SUMMARY
How should travel portals be?

The changes in the end
consumer’s needs and          2005                                        Changes within the e-Business Model.
purchase habits frequently
advance at a higher pace                                                  In 2005, we used to say...
than the service and
functionality offering                          How does a user turn into an online customer?
provided by travel portals.

Therefore, which are the
contents, functionalities
and designs that
e-Business portals for
                                            S

                                                           +                                   +              @                       +
airlines and consolidators     Bringing fees                   ... and everything                      ... advantages of                  ... and guarantees
                               closer...                       for the trip...                         online means...                    of a significant
must display?
                                                                                                                                          company.
                               Fee alerts, best price          Multi-product sales for                 Call requests, chatting with
                               search engines, favourite       the whole trip, customer                call centre representatives,       Press kits, image files,
                               destinations follow-up,         loyalty programs with point             guided tours, service              adverts, videoconferences,
                               everything is taken into        redemption calculators and              and product multimedia             virtual tours and online
                               consideration so that the       practical information are               demos, surveys together            merchandising products
                               user counts with fees and       at the traveller’s service to           with usability techniques          contribute to build the
                               destinations at his/her         satisfy all his/her needs.              contribute to a satisfactory       company’s strong corporate
                               fingertips.                                                             user experience.                   image.

                                                                                               NEO | E-BUSINESS TRAVEL BENCHMARKING EXECUTIVE SUMMARY
TODAY                                        New columns of the travel e-business model

                                             With the changes regarding the traveller’s information and consumption habits, it has become
                                             necessary to make improvements on and develop technological tools that take advantage of the new
                                             opportunities generated to promote and enhance new functionalities that help to ensure customer
                                             loyalty. Nowadays, we say:

  How do you attract the online user?

  Bringing information
                                    +                 ... offering new tools...
                                                                                            +                    ... that allow an
                                                                                                                                                    + ... where the customer and
  closer to him...                                                                                               integral management                  his/her experiences are the
                                                                                                                 of the travel...                     centre of the process.

    Boost SEO                                                     New booking tools                                           100% online transactions
    Currently, 40 - 50 % of a travel portal traffic derives
     from generalist search engines (Google, Yahoo,               Offering booking tools that are suitable and customized     Offering all transactions online:
     Bing,...)                                                    to customer’s needs.
                                                                                                                              • Automating modification, change and cancellation
                                                                  Among the new booking tools, we can find: Search            operations.
    It is necessary to “boost the content indexability”:          by budget, experiences, multi-journeys, near airports,
    • Create contents for search engines                          events, destination offerings, flexible dates,...           • Fostering self-management: seat selection, menus, excess
    • Create contents to be found.                                                                                            baggage and special baggage billing, billing requests,...

                                                                                                                              And at the same time, security is guaranteed at Web
                                                                                                                              operations. By means of security measures that protects the
                                                                                                                              user and fights against fraud.

  Global purchase                                                 The customer at the design core                             Socializing
                                                                    Placing the user as starting point for any development.
  Offering solutions that cover all the traveller’s needs                                                                     Including the customer by means of a 2.0 Web model, where
  (transfers, planning, theatre tickets, baggage shipping,          The implementation of usability techniques and            he/she:
  plane tickets, preferred seats, cheap hotel in the centre of       accessible content allows:
                                                                                                                                 • Requests information (reads opinions, comments, blogs,...)
  town, precharged cards through abroad payment,...)
                                                                                                                                 • Is the creator (shares images, videos, experiences,...)
                                                                    • Simplifying processes to the maximum.
  Boosting Cross-selling, Upselling and Upgrading
  techniques in order to offer a model that allows generating       • Offering greater functionality in a simple and          As a result of this model:
  higher incomes, increasing the user’s satisfaction.                 intuitive way.                                            • A customer exercises his/her influence upon other
                                                                                                                                  customers.
  Broadening the methods of payment adjusted to the                                                                             • The customer is my social network.
  customer, exceeding the credit card limits.

NEO | E-BUSINESS TRAVEL BENCHMARKING EXECUTIVE SUMMARY
Evolution tendencies of the future e-
Business

          Everything seems to show that the mobile solution will gain       currently supports. Meanwhile, it is necessary to adapt the traditional processes
          greater prominence. The current model counts with mobile          and contents to this new channel, to offer the same functionality level at the Web
          solutions that complete the services and functionalities im-      and the mobile phone.
          plemented at the Web channel.
                                                                            The social networks and the customer loyalty programs will be used in real time.
          In the future, mobile services shall be one of the columns on     Relationships will count with high mobility content. Offerings and promotions will
          which most of the processes will rest, setting exclusive ser-     be accessed to through the mobile phone.
          vices for this channel, among which we can find: geopositio-
          ning, increased reality, virtual customer loyalty cards, mobile   Nowadays, travel documents (e-Ticket) have already become paper-less and the
          marketing.                                                        billing and passenger-boarding processes are in course of being transformed. The
                                                                            future tendency is that the remaining products and services acquire the possibility
          The mobile phone shall turn into a device through which all       of counting with a mobile digital support: Purchases, discounts, tourist service
          operations can be performed, exceeding the current terminal       bonus.
          restrictions and converging to the presentation that the Web
                                                                            Source: Indra, “e-Business Travel Benchmarking observatory”

                                                                                         NEO | E-BUSINESS TRAVEL BENCHMARKING EXECUTIVE SUMMARY
Internet, the new main sales
chanel

Due to this fast evolution of the industry, we think these are     This study is guaranteed by Indra’s deep knowledge of the in-
critical times for companies. Airlines and consolidators must      dustry, its strong experience in developing Web portals and its
unavoidably undertake the development of an online trade           significant references all over the world.
strategy according to the new market demands.
                                                                   If you wish to receive a copy of Indra’s “e-Business Travel Bench-
Companies must assess if their portals are appropriate for         marking observatory” study, you can request it at the following
the new tendencies in terms of purchase-booking processes,         e-mail address: infobenchmarking@indra.es
mobility, means of payment, customer service, self-service,
practical information, customer loyalty programs, customization,
etc.
                                                                   Over 240 functionalities
In 2010, Indra has published the “e-Business Travel
Benchmarking Observatory”, in which it analyzes the online         4 months of elaboration
functionalities of the industry e-Business portals and offers a
perspective of the current situation of the best online channel    Over 1,000 hours
practices regarding flight and trip sales.
                                                                   12,900 visited pages
                                                                   24 Webs
                                                                   and 2,000 screenshots

                                                                                                                                        Please, send us your comments to:
                                                                                                                                              infobenchmarking@indra.es

NEO | E-BUSINESS TRAVEL BENCHMARKING EXECUTIVE SUMMARY
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