Thursday, December 21, 2017

Airlines now offer multiple incentives to lure customers to book directly with them

The high costs burden on the airlines for paying the distribution systems and the agents have led to airlines bringing out offers for the passengers to promote direct channel ticketing, reports the Business Standard.

Vistara Airlines offers five extra kilos of luggage to all travellers who book tickets directly from the airline and not from travel agents such as Goibibo, MakeMyTrip, among others.

Even IndiGo offers an in-flight meal at half the price, if the traveller books a seat through the airline's app.

Selling tickets via agents comes with a high cost burden because the airline depends on global distribution systems to provide price and schedule details to flyers. The distribution systems enable the transaction between airlines and agents. Hence, these systems collect a fee from the airlines and then share it with the agents.
Recently, even Jet Airways decided to scrap the basic one percent commission to travel agents, following the footsteps of global airlines to cut costs.

Apart from this, the airlines will also get to know their passengers and this will, in turn, help the airline build customer loyalty, among others, which will help them generate revenue and goodwill.

“There is a direct benefit for the airline and the passenger if the ticket is booked directly with us. Also, we get to reduce our distribution cost, whereas the flyer gets access to our ancillary products,” a senior Vistara executive told the paper.
21/12/17 Moneycontrol

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