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Posted Feb 25, 2010
So far, we’ve established that there are a number of opportunities associated with flight merchandising -- new revenue streams, revitalized supplier-customer relationships, and a way for airlines to finally move beyond commoditization and truly differentiate their product. We left off our last installment, however, with an important question: “How will this rapid adoption of airline merchandising be possible, given the complexities that characterize airline and agency operational and technical supporting processes?”
Posted Feb 25, 2010
Ancillary fees have become the Susan Boyle of the travel industry. That’s right, they aren’t sexy, but people still love to talk about them. Plus, nobody agrees on the magnitude of these things, and how could they, when tracking them is such a daunting task. For example: The Beat reported that TRX found that "ancillary airline fees account for between 0.75% and 1.5% of the total air spend."
Posted Feb 10, 2010
Beginning May 1st American Airlines will charge coach passengers $8 for a blanket and inflatable pillow on domestic flights that last longer than two hours. You will have to bring your own warmth and headrest for flights less than two hours if you are in coach. But wait there is more. If you purchase American's pillow and blanket, American will throw in a coupon for $10 off your next purchase of $30 or more at Bed, Bath & Beyond. Goodness, Gracious!
Posted Feb 4, 2010
No more pithy intros or recaps of the last article; it's time to get right into it. Here we go: The search for truths and myths about airline merchandising. For some, the reality of developing, implementing, and distributing an effective airline merchandising product is way too complex to even imagine. This is a myth.
At a macro level, there are really only two major challenges that need to be overcome in order for merchandising to flourish. There needs to be a solid value proposition to motivate buying behavior, and there needs to be operational and technical process to allow the transaction to take place. This is a truth.
Posted Jan 21, 2010
Last week, I introduced a blog series on merchandising. The first installment focused on the fact that there is a wide range of opinions and emotions across the travel industry regarding this new phenomenon called merchandising. I also pointed out that there is a fair amount of misinformation and misunderstanding on the topic, and this often inhibits effective discussion and debate. So, in the hopes of leading to more fruitful and informed discussions for all of us, this second installment is a short primer on merchandising lingo. The intent here is to give us all a baseline understanding about this powerful movement that is unfolding in our industry.
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