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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.
Posted Jan 13, 2010
There, we said it! The question everyone always has but seldom asks in public--what's in it for me?--is now out in the open, so we can talk about it more freely. We can finally begin to have some much-needed, intelligent conversation and debate about airline merchandising, without hiding behind fear, apprehension, or lack of understanding. We can begin to address questions such as these: What is it, really? In what shape and form will this new industry beast show itself? What are the technological, commercial, and adoption implications? Why is it so scary? And yes, we can even address the big question: What's in it for me?
Posted Sept 24, 2009
Sabre Holdings Chairman and CEO Sam Gilliland, speaking at The Beat Live in Austin Wednesday, suggested that airlines need to appoint a Chief Merchandising Officer in order to manage the continued onslaught of new fees (or revenues depending on your perspective) that the airlines themselves are developing.
We agree and think this is a great idea.
Posted Sept 3, 2009
... and maybe trips on the way.
Now here is a turnaround. Instead of being the innovator, Southwest is taking a leaf out of the European LCCs and charging for an ancillary service--namely early boarding.
Southwest's new "Early Bird" check-in product sounds simple enough, but wait ... hold on there pard'ner, not so fast.
Posted Jun 9, 2009
Since I retired from my previous role (Sabre Travel Network president) in early 2008, I've watched with interest as "merchandizing" has become quite the buzz phrase in the travel space. In some ways, it seems it's the new slang term for airline "pay for seats" and other things that you might consider as ancillary sales items for a reservation.
This subject has been viewed as a "savior" for airlines in search of new revenues or much needed brand differentiation ... and viewed by some "industry experts" as the Achilles' heel of the global distribution systems that are often painted as not being able to accommodate "merchandizing."
Posted Feb 26, 2009
RECAP: Sabre Travel Network claims nearly 100 participants in its authorized developer program, which requires fees for certain services. The program recently lost a member when Sabre expelled Farelogix for "actively encouraging fragmentation." American Airlines wants Sabre to play nice because AA said Farelogix is "developing" merchandizing technology for diversified airfares and ancillary products. Pioneered by the likes of Air Canada and Ryanair, such unbundled pricing is found on an increasing number of airline Web sites. Sabre, too, is working to enable such functions in its agency interfaces and thus far has activated a limited set of fare flavors with a short list of airlines. That list as of this week includes United Airlines, which is offering the extra-legroom Economy Plus seats to users of Sabre's MySabre and Turbo Sabre interfaces. In the midst of all this, a column by the head of a third-party developer that works with Farelogix raised ire in the GDS community. Travelport responded last week with a piece in The Beat and here's a comment from Amadeus ...
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