|
BLOG - WHO WANTS YOUR BACK-SIDE IN THEIR SEAT?
Airlines' battle of the skies! Price War Pending
WHO WINS? The flying customer of course, but it's a WIN-WIN thing
(continued from homepage...)
We've already seen the introduction of discounted airfares, specials and promotions offering one-way domestic flights for as little as $9. We've also seen a huge number of Low Cost Carriers (LCC) come into the marketplace and we've come to realise that some airlines can operate on minimal profit margins. Now we'll see proven and known (1st tier) airlines go into battle with the LLC's, and with each other, to bolster business as corporate passengers loosen their belts in what can only be hoped to be described as an upturn in the global economy.
| New Airline requests unlimited capacity between Australia & NZ |
| Emirates Air spies Fiji as New destination ex SYD - recently denied |
| Airlines prepare to price-match opposition fares - ex Australia |
| SQ cuts Business & Economy Class fares to Europe & Asia |
| Etihad release new Business Class Fares to the Mid East & Europe |
| Qantas cuts First Class on some fights, lucky J Class get the seats! |
| Delta Airlines plans to shake up the AU/US route with its own flights |
| Blue Pacific (Virgin Blue) to intro flights ex TAS to New Zealand |
| Qatar announces Australian flights commencing 9 Dec 2009 |
| Virgin Blue/Emirates pact for interlined flights |
| QF & BA continue the battle of seats over the kangaroo route |
| Hawaiian Air - 2 for 1 Economy deal to HNL |
| Swiss Air offer unmatched prices & uncompromised service to EU |
| Finnair emerge with One World Fares for Aussie Passengers |
| United Airlines announces "We'll fight to keep the Pacific" fares |
| ...and these are just a few! |
Like I said, the writing's on the wall and it's going to be an I WANT YOU! mentality... particularly as Australia emerges the 'First Eastern' nation to recover from global recession, and more and more international airlines are wanting a slice of the pie.
But don't be totally disillusioned by the carrot waiving advertisements and don't be encouraged by the seemingly exemplary fares that may exclude taxes and other levies.
ACCC requires Australian companies to produce an offer, inclusive of such taxes and levies however foreign operators may very well advertise a fare that doesn't include these. It's the comparing apples with apples exercise; with fares, however with levels of services and logistics as well.
Logistics (connections & layover times, ease of terminal transfers and convenient flight times) is the first most important thing to decide before we offer our customers an airfare. With logistics comes cost effectiveness. ie. Is a $100 saving really worth a twelve hour layover? Or, if a flight is cancelled, what resources does the airline have to reschedule a flight, particularly if that airline flies only twice or three times a week to that destination?
DBT Corporate's equation to offer:
| Preferential brief: 'listen' to customer |
|
Test and compare logistics |
Pricing |
|
Compare with cost effective alternatives |
| Alternative options |
|
Apply BFOD to each air sector and re-examine logistics & savings |
| Engineering |
|
Tailor a travel itinerary that best suits the customer both logistic and cost effectively |
Offer
|
|
Create a speedy, clear & precise written response offer and include alternate options where (a) logistics can be improved (b) further savings can be made, and (c) provide an explanation as to why we feel that in our opinion this or any other offer would better suit our customer's needs. |
It's what we do, and what we're known to do best. It's also what we're known to do better: with the introduction of new airlines and in particular, helping our customers understand the flamboyant advertisement offers made by the 'new players' in the sky.
How ever many new airlines and start-up LCC's plan to operate within our air travel network and how ever many are keen to swipe your credit card and have you aboard as a loyalty member of their FF programs, it's important to remember a few things:
- CHEAP is just that. Inexpensive and cost effectiveness better describes the nature of true savings
- RULES may prevent cheap fares being an affective cost reduction
- SPECIALS may relate to certain flight classes only (at certain times of the year)
- OFFERS may restrict luggage allowances
- 'ALIEN' and 'Once-off' fares might mean luggage can not be checked for the complete journey
- CHEAPEST ISN'T ALWAYS BEST
There are many variables to consider when finding "what's going to be the best" for you. Ask us... we know what it takes to compile a most cost effective travel itinerary bearing in mind savings, airline track record and safety performances, ability to amend flights without harsh penalties and getting you there on time. Its' what we do.
Speak to Stefan on 02 9888 5555 or at stefan@dbt.com.au and talk about how DBT Corporate can work with you and your company to produce benefits that you're not already getting! |
