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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…

Otras entradas que pueden interesarte:

• ITurismo – International congress in Innovation&Technology
• symbiosis between airlines and destinations
• the corporate profile
• airlines against high speed trains
• physical brand design

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…

Otras entradas que pueden interesarte:

• mobile marketing and airlines
• airlines and web 2.0
• ITurismo – International congress in Innovation&Technology
• Cross-selling, up-selling, new business opportunities for airlines
• code sharing as a competitive weapon

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…

Otras entradas que pueden interesarte:

• airlines and experience marketing
• ITurismo – International congress in Innovation&Technology
• inflight advertising
• MIC Tourism Technologies by Microsoft
• symbiosis between airlines and destinations

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…

Otras entradas que pueden interesarte:

• MIC Tourism Technologies by Microsoft
• airlines against high speed trains
• ITurismo – International congress in Innovation&Technology
• code sharing as a competitive weapon
• Cross-selling, up-selling, new business opportunities for airlines

Cross-selling, up-selling, new business opportunities for airlines

The use of websites as a sales channel for airline tickets has meant that airlines now have direct access to a target audience with additional requirements for products and services related to the purchase of the flight.

This audience is still climbing. In March 2009 a DBK report on Internet travel sales analysed this segment of the Spanish market through interviews with managerial staff from 45 of the main companies operating in the sector.

This report found that despite a fall in tourism in the second half of 2008 due to the economic crisis, Internet travel sales underwent considerable growth. Total turnover for the final customers of these services from Spanish websites stood at 6,250 million euros, 20% up on the year before. The sale of air tickets was the most important activity, responsible for 39% of total revenue.

Given the large number of customers now accessing airline websites in order to purchase flight tickets, many airlines are now considering new business opportunities that may well contribute to user satisfaction through two different approaches: lee el artículo completo…

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• the importance of websites in the airline industry
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• airlines and web 2.0
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the importance of ancillaries for airports

In recent times airports have started moving away from the mere provision of transport services towards a broader business concept, becoming fully-fledged business centres.

Airport revenue can be divided into two categories, that generated by air traffic and that generated by non-air or ancillary traffic.

Air traffic revenue includes landing fees, aircraft parking fees, fuel supply charges, passenger departure charges and charges for the use of passenger boarding bridges and cargo handling.

Non-air traffic revenue covers the commercial activities taking place within the airport and includes leasing, retail, handling (land assistance to aircraft, passengers and cargo), duty free shops, catering, bars and restaurants, advertising, car hire, parking and others.

In order to attain a clearer idea of non-air traffic services and their importance for airport business some real-life cases have been set out below:

The Spanish airport system is at present composed basically of a network of airports integrated in AENA, a state-owned public company, dependent upon the Spanish Ministry for Public Works.

In 2007 the total amount of ordinary revenue for AENA stood at 3,063 million euros, distributed in the following way:

36% air traffic revenue: landing charges, security charges, passenger fees and charges for the provision of services and the use of the airport

6% non-air traffic revenue: charges for the provision of services and the use of the airport

35% air navigation: en-route and terminal charges.

19% commercial revenue and 4% other revenue: rental of land and premises, vehicle parking and other commercial activities.

As can be seen the proportion of non-air traffic revenue stands at 23%.

Total commercial activities were distributed in the following way: lee el artículo completo…

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• Strategic marketing for airports
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• a wi-fi christmas gift at airports
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Strategic marketing for airports

Although airports are highly regulated concerns, which means that that the concept of serving public interest has tended to be deemed more important than other issues such as profitability, cost-saving or efficiency, it is within the realm of possibility to make improvements in these areas through the application of strategic planning criteria that have proved valid for other types of businesses.

A marketing plan can be prepared for an airport in the same way as for any other business. It is obvious that there are specific issues inherent to airports to be taken into consideration, just as there are peculiarities in the construction, textile, pharmaceutical or any other industry.

The starting point should be an analysis of the internal and external situation of the concern, allowing performance of a diagnosis through which strategic marketing decisions and a plan of action can be defined. This analysis should cover lee el artículo completo…

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• the importance of ancillaries for airports
• managing communication in times of crisis
• the importance of microsegments
• a wi-fi christmas gift at airports
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airlines & co-branding

Co-branding can be a successful strategy as long as the potential alliance takes place between suitably compatible brands, that is to say when the values proposed by each one are related, complementary and capable of generating synergies. The sharing of similar targets is also important, even when some may be closer to one or another of the allied brands, they will still invite the discovery of the others.

An initiative with these characteristics has been carried out by Vueling together with MTV and Custo BCN; that is to say an airline, a TV channel and an international designer. At first sight their objectives may seem disparate and their type of business quite different but if we take a closer look at the orientation of their products and services, the points of union become clearer, given that they are aimed at a similar or potentially similar audience.

[SWF]http://www.youtube.com/v/2AJZGwKt4bk&hl, 500, 404[/SWF]

The brands all share a common identity comprising design, modernity, freshness, liveliness, transgression of traditional concepts, youth, imagination, trendsetting and positioning as love marks.Their initiative has been to propose a unique travel experience. Two aircraft from the Vueling fleet have been personalised with Custo designs and MTV is to provide the in-flight entertainment. lee el artículo completo…

Otras entradas que pueden interesarte:

• is low cost private jet travel possible?
• on-line marketing for airlines
• airlines and experience marketing
• the importance of microsegments
• the importance of ancillaries for airports

the importance of websites in the airline industry

Internet has become a strategic distribution channel for airline ticket sales. For some airlines, especially low cost companies, it can be the only means of distribution.
With over 1,500 million people now using the Internet, it has become crucial for airlines to think about defining their online business as a keystone of their marketing policy.

According to ACEM, the Spanish Association for eBusiness and Relationship Marketing, electronic sales in Spain reached a turnover of 1,327.3 million euros in the third quarter of 2008, a 32.9% increase over the same period in 2007, with a total of 17.1 million operations.  Air transport was responsible for 12.2% of this turnover.

The following key points should be taken into consideration in the conception of an ideal website for airlines. lee el artículo completo…

Otras entradas que pueden interesarte:

• on-line marketing for airlines
• airlines & co-branding
• airlines and web 2.0
• loyalty systems
• a wi-fi christmas gift at airports

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