cargo airlines-competition beyond price

Most freight carriers, including cargo airlines, have been forced to take part in a fierce price war. Many of them seem to believe that their pricing is their only value for customers and see no way out of this war.
Although to deny the importance of pricing would be absurd, we should not give in to fatalistic ways of thinking that there is no room for manoeuvre for actions to be taken and advantages gained.
Ideally each case should be analysed in order to identify opportunities and make suitable recommendations, but first lee el artículo completo…
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e-mail marketing
E-mailing as a marketing tool can provide highly effective results if the right strategy is employed. Austrian Airlines used this method to boost its sales resulting in the capture of around 11,000 new customers at a crucial time for the company, as the European Commission had just approved its merger with Lufthansa.
The campaign was conducted in two waves, one in spring and summer, to capture customers travelling for work or holidays and was designed to appear to the consumer when really needed, stated Paul Nowestein, founder of www.emailingnetwork.com, the company responsible for the campaign.
Nowestein went on to explain that the goals were the mailing of special offers in order to obtain brand notoriety and boost online sales in Spain as part of a strategy for capturing new niche markets,
The following are key factors in the results: lee el artículo completo…
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the corporate profile
Trying to compete where your product or service is identical to that of the competition is frankly complicated if not impossible. Or at least to do so with a chance of success.
One starting point for a successful marketing strategy is awareness of what makes you different and at the same time attractive and highly valued by your customers. These differential factors contributing to the value of a business are the key to success.
However these factors alone are not enough, you may know about them, your organization may know about them but everybody else may not. This is a problem faced by many businesses that may have the good fortune to be highly differentiated due to one or more of their peculiarities or attributes, but have been unable to get this across effectively.
Their products or services or way of going about things may have won their customers over but the situation is not fully taken advantage of by making it into their calling card. They do not make use of it at all times or with every format employed for reaching their audience.
The approach to organizing efficient communication of these values is through a corporate profile. By defining the profile, the personality of the company is allowed to materialize.
The profile should include: lee el artículo completo…
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ITurismo – International congress in Innovation&Technology

Networking consists in the development of a network of professional and personal contacts, allowing access to like-minded businesses and people as yet unknown by using current contacts to provide access to their social networks.
Online business networks have become popular as a result of the social networking boom that of the last few years but they can also be built up in the physical world. Participation in events for making contacts between companies and people with a common interest in a particular subject can be particularly effective.
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These events all tend to share the common denominator of providing a chance for “players” to get to know each other personally and thereby gain mutual benefit. This may take the form of an exchange of ideas, of different ways of developing a project; but it is also possible reach greater commitments, setting up partnerships for the development of business projects, professional cooperation, research teams etc.
The concept is simple, if two people or companies share the same interests, then it could well be beneficial for them to meet up and perhaps start even working together, increasing the potential that could be developed by each working alone
An initiative of this type aimed at the tourism industry is to take place in Rome on the 1st and 2nd of December: the Congresso Internazionale di Innovazione e Tecnologia per Dirigenti di Aziende Turistiche. This event aims to bring together different business sectors: tourism institutions, airlines, airports and companies working in marketing, technology and other related services. lee el artículo completo…
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mobile marketing and airlines
According to the 2009 Netsize Mobile Marketing Survey: “Can companies and brands rise to challenge and cash in on the mobile marketing opportunity?” mobile marketing is becoming a force to be reckoned with as part of integrated marketing strategies.
56% of the experts surveyed reported that they are already using mobile phones for gaining new customers but the percentage rose to 64% if the goal was to keep customers and promote loyalty.
For airlines this mode of contacting customers is ideal for attaining direct, personalised communication. A simple way of providing services and assistance which at a low cost to the company gives rise to heightened user satisfaction.
Most airline customers possess a mobile telephone and tend to hold on to it both before and during flights which means that information related to the flight or ground services can be easily communicated such as directions to the departure gate, announcements of delays or the confirmation of the availability of other services pre-booked for arrival (confirmation of hotel transfer services or vehicle hire for example).
In this way users’ mobile phones can be used for lee el artículo completo…
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airlines and web 2.0
Web 2.0 has opened up new marketing and communication opportunities for airlines.
Web 2.0 is based by definition on conversation, on direct, personalised contact. Businesses are no longer distant, far-off entities and customers become more than just anonymous voices. Participation in this virtual community boom could mean significant profits for airlines. However, the approach should be significantly different from the criteria employed in traditional websites.
The rules of the game are different here, lee el artículo completo…
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MIC Tourism Technologies by Microsoft
MIC Tourism Technologies by Microsoft is the world’s first technology centre dedicated specifically to tourism and was recently opened at the Parc Bit in Majorca. It was set up through a cooperation agreement with the Balearic Islands Regional Government (Govern Balear). The selection of this location can be put down to the strong links of the area to the tourism industry and specific technological developments for the sector. At present over twenty international airports and airlines, 50,000 marina moorings and half a million hotel beds are managed through software developed in the Balearic Islands. lee el artículo completo…
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loyalty systems
Many airlines now employ loyalty programmes as an incentive for their customers.
These systemss are to be understood within a context where customer relations and care have taken on vital importance.
Leon G. Schiffman, in his book “Consumer Behaviour”, claims that six main factors explain why current consumers tend to be less loyal than in the past:
1. Wide variety of options to choose from.
2. Greater availability of and access to information.
3. Acquired rights. Customers tend to be more critical of how they have been treated.
4. Greater uniformity of products.
5. Insecurity.
6. Lack of time.
In this context, loyalty programmes have become a crucial marketing tool.
The concept cannot be reduced to a simple promotional system where points are accumulated and gifts are handed out in return; in fact such a system is condemned to failure.
Loyalty is a much more ambitious concept and understanding it is the starting point for the creation of a system that is beneficial both for businesses and their customers.
Here are some key observations:
“A 5% increase in customer loyalty could well produce an increase in profits of between 25% and 85%.” (Rank Xerox Carlson Marketing Group)
“A 5% increase in customer desertion could produce a 30% fall in profits”. (Harvard Business School).
“Loyalty programmes should be designed to make differentiated services and products available to customers in accordance with their buying patterns and profitability. If they are based only on discounts for large quantities or payment for sponsorship, then they will not last.” (Joseph C. Nunes, Marshall School of Business, University of California)
A loyalty programme should be designed with a specific organisation or customer in mind. If it is a just a mere copy of a system implanted elsewhere, then there is a high likelihood of failure because specific requirements of the market/product in question are being overlooked. The first step should be the setting of goals and lee el artículo completo…
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physical brand design
Is it possible for airlines to make flying a pleasurable experience even before take-off?
There are ways to make this happen. One example is Virgin Atlantic’s futuristic/retro style VIP lounges decorated by its in-house designer Joe Ferry. Passengers can enjoy a cocktail or a session in the spa while their luggage is taken care of and a chauffer waits at the gate to carry out their check-in procedures.
This environment also provides an ideal opportunity for the airline brand to establish contact with passengers.
With this idea in mind Crea International has defined the concept of physical brand design to designate the creation of spaces as the physical expression of a brand with the aim of attaining sensorial interchange with the audience, thus generating a memory-inducing experience.
The concept goes much further than the creation of meticulously designed interiors: lee el artículo completo…
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symbiosis between airlines and destinations
The travel and tourism industry will represent 9.4% of the world GDP in 2009 according to the World Travel and Tourism Council (WTTC) and although this figure is down on the year before it is still important. For many countries this sector is an important source of revenue and a keystone in economic and social development with capacity for job creation, attracting investment, capturing currency, diversification of the economy and in general generating of economic growth. One growing trend is the expansion towards what could be called emerging destinations; that is to say new geographical destinations and holiday ideas. More sophisticated, discerning travellers are now asking for more than what is available from regular destinations. According to the WTO (World Tourism Organisation), in 1950 97% of passenger arrivals were concentrated in Western Europe and North America – the situation has changed greatly since then. The development and importance of a destination lee el artículo completo…
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