Leveraging sales expertise and agency networks for market dominance
The aviation industry requires both local sales expertise and strong agency networks to achieve market leadership success. The article explains how airline distribution now operates as a complex system which combines advanced technology with personal customer service to generate revenue through relationship building. We look at how strategic airline expansion into emerging regions relies on the trust curated by the trade. The analysis of new route economic patterns enables carriers to teach their partners about selling travel value instead of prices which makes every travel agent become an airline brand supporter for worldwide expansion. High-value complex international bookings require human intervention as their most effective defense because digital noise has reached its highest point. The blog examines how Travesla connects advanced worldwide standards to the specific requirements which exist in different local markets. Our organization delivers direct assistance together with specialized training to airlines which we represent so they become preferred business partners for all members of the trade network. The future sky will belong to those who can merge digital exactness with their ability to connect with people in society.
Table of Contents
- The Foundation of Market Dominance
- The Power of Localized Sales Expertise
- Evolving Airline Distribution Models
- Synergy Between Route Economics and Trade Trust
- Expansion Strategies for Emerging Markets
- The Resilience of Agency Networks
- Travesla: Your Growth Engine in South Asia
- Elevating Your Brand to Global Leadership
The Foundation of Market Dominance
In order to sustain leadership in the market and deliver profitable growth, stability of business in the markets/serves where an airline is operating is most important. The airline CEO faces his biggest challenge in developing a appropriate expansion strategy. The Worldwide marketing approach has not brought the returns on investment that were hoped for. In order to out compete the rivals on the market a strategically aligned, customer relevant marketing concept, split up into individual marketing activities is necessary. Dominance on the competition is won on the ground, for example at the airports, efficient (self-) check-in procedures, well trained employees and partners of airline companies as well as travel trade organizations. Airline brands need to establish an appropriate presence to guests and also be accessible to them. Many of their flight routes compete with low cost carriers for market share and thus they need a solid base in this market to compete effectively in the subcontinent and other countries where they operate.
The Power of Localized Sales Expertise
The Travel Industry needs trained sales professionals to push the airline sales professional beyond the role of account management. To be a market leader in their respective market segments, an airline must be able to identify all the factors which impact customer demand. The airline will use their in-depth knowledge of the marketplace to design creative offerings with value to the customer such as low fares and on-time arrivals. The airline assigned sales teams will become the organization’s intelligence unit gathering vital information in real time to determine the best delivery route and dynamic pricing. In the end, success or failure in the India market will depend on one local trade partner, who speaks the local language as well as understands the India business language. A crucial element of being a successful local travel expert is not only knowing your products, but also understanding how these products can fulfill the needs of the tourists and travel planners visiting and planning to visit your region.
Evolving Airline Distribution Models
The airline distribution industry is currently undergoing its main transformation as NDC technology aligns with the shift towards individualised travel services. The human network is driving this change through technology. Distribution channels today are essentially retail outlets and travel agents need to have a full range of revenue generating capabilities. The airlines’ agency networks must move from utilising legacy GDS technologies to next generation capabilities that not only present products to the customer but also sell to the customer. The industry’s shift to NDC will also require substantial investment in training and support to ensure travel agents are equipped with the skills required to maximise the new systems’ potential. This acquisition will allow us to offer our trade partners a seat, plus associated ancillaries, through our technology platforms once we have demonstrated the ability to load and operate the system. Our constantly updating technology will generate significant revenue from direct flights on competitive routes.
Synergy Between Route Economics and Trade Trust
We also focus on the connection between relevant economic metrics for routes and levels of trade trust based on personal relationships. A route may look good in an Excel sheet, but it is the local agency networks that will really bring out the potential of the route. An airline’s financial resources to secure corporate and premium leisure bookings pre-paid before consumers even start searching online is its trade trust. The airline that best keeps its trade partners informed of the stability of the route and service levels will attract customers first, potentially before consumers compare prices versus competitors. This strong partnership translates into stable revenue which supports the airline’s growth strategy. The trade function exists to ensure that the airline makes money, maximising revenue on high demand routes by smoothing out the peaks and troughs of the year.
Expansion Strategies for Emerging Markets
When entering emerging markets, companies must think big as the first mover and be precise in their execution. Airline entrants will need to understand the travel patterns and aspirations of the developing middle class in these countries. Prior to the first flight, the airline needs a sales force that can create destination awareness in potential customers. This needs to be done through tour operators located in several countries as well as specialty agents with strong relationships with customers who spend the most on travel and are eager to discover new destinations. By focusing on connection prestige and customer service, airlines can grab market share in these markets before the market becomes crowded. To be successful in the travel and international tourism industry you need to build a relationship of trust with your clients.
The Resilience of Agency Networks
The aviation distribution ecosystem includes airlines, global distribution system (GDS) companies, online travel agencies (OTAs), meta search companies, low cost carriers (LCCs), travel agent aggregators, travel agent websites, travel agents, online travel retailers, air travel websites, content management system providers, data management providers, data hub providers, travel search engines, travel comparison websites, mobile applications, social media channels, mobile enabled websites and business-to-business (B2B) websites. The agency distribution networks are the lifeblood of the aviation industry in today’s turbulent world and remain as the backbone of distribution. The aviation distribution ecosystem has not changed much in the digital age and the travel agent is the closest point of sales for an expanding airline. A strong relationship with the trade is the best insurance that an airline could have and the airline invests significantly in developing a successful airline distribution strategy through the trade. Our delayed effect products provide a strategic buffer for retailers so that sales revenue remains positive.
Travesla: Your Growth Engine in South Asia
Travesla is the most powerful growth engine for global travel companies seeking to have success in the South Asian market. Travesla positions its clients as market leaders through innovative sales expertise and provision of trade meetings. We are not just another General Sales Agent. A good GSA is an active business extension of an airline. Travesla identifies and maximizes the profitability of its partners by leveraging underlying economics of routes. Travesla has agency presence in key locations around the world. Travesla provides technology driven distribution solutions for airlines to succeed in the complex Indian market. Travesla assists airlines in their expansion and stabilization of revenue with a fast and efficient approach, leveraging in-depth local market knowledge and proven commercial success. Travesla works as your global business partner, turning your needs into local success.
Elevating Your Brand to Global Leadership
Rather than just focusing on sales performance, we help you become the largest global player in your industry / vertical. By combining our market contacts with our airline distribution expertise we can position you at the cutting edge of industry development. Our total solution includes effective management of GDS sales, achieving penetration of the most profitable corporate accounts and targeted marketing support to deliver on your financial targets. Our team delivers brand compatible and sustainable growth in revenue for our partners by gaining access to the highest yielding segments of the Indian travel market. Following the initial project we have a local team who can continue to provide support in the field. We are proud of our achievements, and they will serve as a good base for active aviation in Lituania.
FAQs
Why is localized sales expertise considered a competitive advantage in aviation?
Having local sales expertise is key for airline success. Local sales experts are better equipped to understand local market nuances than those based in a central office. They have in-depth knowledge of corporate travel policies and fluctuations in traveller volumes by type (e.g. sales and management) travelling to different destinations. This expertise is critical in helping airlines build strong relationships with customers with the greatest potential for growth in local markets, likely to be the airline of choice when those customers are making travel arrangements for other customers. Local sales expertise is also key in optimising route economics by understanding the revenue potential of routes within a geographic region. As a global brand, an airline can become the preferred choice in select markets, delivering long-term growth.
How do agency networks contribute to an airline’s revenue growth?
High-yield sales have the highest yield potential and in many cases are generated from agency networks as business passengers and other high-end leisure travellers research, book and pay for travel on related partner websites. Sales channels involving travel agents generate flights sold with a range of related options such as seat selection, hotels, car hire, package holidays, travel insurance etc. These are often sold to customers on a personal basis and therefore offer consultative sales that a direct to consumer website is unable to offer. Airlines need to continue to be active and visible in these sales channels in order to ensure that they are still considered by the customer when booking complex/high value travel. In addition, sales channels involving travel agents also generate a consistent volume of sales that is less sensitive to price than sales to the general public. For any international airline looking to build volume in order to drive increases in revenue, it is crucial that they remain loyal to securing sales from these sources.
What role does airline distribution play in a successful expansion strategy?
The airline distribution system is the conduit through which an airline’s inventory reaches its customers. How well an airline performs through this system is critical to supporting its growth objectives. A successful distribution strategy enables an airline to present its fares and products through all relevant distribution channels (GDS and NDC). It also enables organizations to determine target market segments for specific products as well as select appropriate business partners to fulfill this delivery function. A non functioning distribution model can make route planning meaningless if it fails to attract sufficient customers. Dynamic retailing is a critical component of an airline’s distribution strategy today and offers untapped potential for additional revenue on every seat.
How can airlines balance aggressive expansion with sound route economics?
Airline operations must leverage data to choose profitable routes for growth instead of making business expansion without mind to route profitability. To enter into a new route successfully, the airline needs to conduct comprehensive market research of the new route, find profitable passengers, and verify route profitability and sustainability. In addition, the airline must select optimal aircraft, create high-class passenger spaces and volumes, and develop trade for the quality service creation. Additionally, collecting and analyzing indicators of operational performance of new routes allows for flexible adjusting flight schedule and pricing in order to increase net margin. This “quality growth” is necessary for effective network expansion. The strategic discipline is a way of organizing a business to make it permanently profitable.
Why is the human element still vital in an increasingly digital airline distribution world?
While technology and customer interaction can both play roles in the booking process for high-end air travel, it is still a high-trust purchase in which the airline must win the booking against competitors, and this is often through the airline’s relationship with travel agents. As specialists with unique skills for problem-solving, travel agents need a human interaction to complete the booking, and it is during this process that the airline can deliver brand value to customers and foster long-term loyalty. However, the digital space can also be a medium through which airlines deliver individualised, high-touch services that enable them to tap into a competitive advantage in the marketplace and win over their most valuable customers.
Salil Nath