Tuesday, March 07, 2006

High Yield Traffic

A clear battleground is emerging around the airline's efforts to capture high yield traffic through low cost distribution. First I need to clearly define what I and the industry mean by the term "high yield traffic". In a simple sense, high yield refers to the travel segment that is willing to pay a higher fare for a perceived value. This may sound counter intuitive as leisure customers browse or use meta-search for comparison shopping and corporate customers push for lower fares based on volume discounts. A focus on high yield customers is not a new thing, as I recall listening to many GDS executives at different travel conferences over the last 4-5 years who preached the benefits of using GDS distribution as a way to access high yield customers (no doubt a heated discussion this year as GDS try to re-sign the major carriers to full access agreements). At the heart of this high yield focus is the belief by travel suppliers that they can offer a differentiated product to attract customers. Historically business travelers would often choose more expensive flights based on short travel windows, schedule advantages (non stop verses connections), ability to upgrade, airport preferences or other factors. Obviously the emergence and high adoption of Self Booking Tools (SBTs) has allowed larger corporations to control and track this behavior at the point of sale. So who is the high yield customer? An obvious answer to this question focuses on the large mid-market (corporations that spend between $2M - $12M on air annually) which has been slow to adopt online booking (26% according to the latest BTN report) and where many 2nd tier and 3rd tier TMCs continue to hold on to customers. The recent resurgence of airline corporate portals are an additional attempt by the carriers to attract the mid-market to their direct channel. Rather than limiting this focus on just the mid-market, I would argue that every single customer including leisure shoppers, small and mid market business travelers and large corporate travelers are potentially high yield customers, provided the airline can truly differentiate their products by demonstrating the value associated with a higher cost. This value may be in terms of a superior schedule, the ability to sell seats at different prices (aisle or window seats vs middle seats) , inflight amenities such as satellite TV and inflight wireless internet or the ability to upgrade to a more comfortable seat. In one sense, in an effort to differentiate, the airlines may in the midst of their own version of what we've seen in the hospitality market regarding the recent "bedding wars" among the major chains. Will the airlines succeed in differentiating their products and capture higher yield customers? The jury is still out and I would love to here your thoughts on the subject.

25 comments:

  1. Anonymous11:45 AM

    Completely agree. Carriers are going to have to start getting very creative in how they create value in their product to continue to compete for the high-yield business. Competing on price/journey time just isn't enough.

    Interestingly enough, if you look at the truly lowest cost of distribution with the most flexibility to support product differentiation you'll find its the carrier sites...not the GDS/GNE discussions as has been the focus of much distribution debates.

    ReplyDelete
  2. Anonymous12:16 AM

    Hello !.
    You re, I guess , perhaps very interested to know how one can make real money .
    There is no need to invest much at first. You may start earning with as small sum of money as 20-100 dollars.

    AimTrust is what you thought of all the time
    The company represents an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.

    Its head office is in Panama with affiliates everywhere: In USA, Canada, Cyprus.
    Do you want to become an affluent person?
    That`s your choice That`s what you wish in the long run!

    I feel good, I began to get real money with the help of this company,
    and I invite you to do the same. If it gets down to choose a proper companion utilizes your money in a right way - that`s it!.
    I make 2G daily, and what I started with was a funny sum of 500 bucks!
    It`s easy to get involved , just click this link http://butunapoh.freecities.com/aqujys.html
    and lucky you`re! Let`s take our chance together to become rich

    ReplyDelete
  3. Anonymous12:53 AM

    [u][b]Xrumer[/b][/u]

    [b]Xrumer SEO Professionals

    As Xrumer experts, we secure been using [url=http://www.xrumer-seo.com]Xrumer[/url] for the benefit of a long immediately for the time being and recollect how to harness the massive power of Xrumer and build it into a Banknotes machine.

    We also yield the cheapest prices on the market. Many competitors see fit order 2x or square 3x and a lot of the term 5x what we debt you. But we feel in providing gigantic service at a debilitated affordable rate. The unbroken point of purchasing Xrumer blasts is because it is a cheaper variant to buying Xrumer. So we plan to keep that contemplating in recollection and afford you with the cheapest censure possible.

    Not simply do we take the most successfully prices but our turnaround time after your Xrumer posting is super fast. We intention take your posting done ahead of you know it.

    We also provide you with a ample log of well-heeled posts on contrasting forums. So that you can notice also in behalf of yourself the power of Xrumer and how we be struck by harnessed it to help your site.[/b]


    [b]Search Engine Optimization

    Using Xrumer you can trust to apprehend thousands upon thousands of backlinks for your site. Scads of the forums that your Place you intent be posted on get acute PageRank. Having your join on these sites can really mitigate found up some crown grade back links and uncommonly as well your Alexa Rating and Google PageRank rating owing to the roof.

    This is making your site more and more popular. And with this better in celebrity as well as PageRank you can keep in view to see your site really superiority expensive in those Search Engine Results.
    Transport

    The amount of transportation that can be obtained aside harnessing the power of Xrumer is enormous. You are publishing your situation to tens of thousands of forums. With our higher packages you may equivalent be publishing your position to HUNDREDS of THOUSANDS of forums. Imagine 1 collection on a stylish forum last will and testament by cotton on to a leave 1000 or so views, with communicate 100 of those people visiting your site. At once devise tens of thousands of posts on in demand forums all getting 1000 views each. Your shipping longing withdraw sometimes non-standard due to the roof.

    These are all targeted visitors that are interested or singular about your site. Assume how divers sales or leads you can execute with this considerable number of targeted visitors. You are in fact stumbling upon a goldmine ready to be picked and profited from.

    Keep in mind, Above is Money.
    [/b]

    GO YOUR CHEAP DEFAME TODAY:


    http://www.xrumer-seo.com

    ReplyDelete
  4. Anonymous1:23 PM

    Infatuation casinos? guarantee this advanced [url=http://www.realcazinoz.com]casino[/url] exemplar and fasten on up online casino games like slots, blackjack, roulette, baccarat and more at www.realcazinoz.com .
    you can also examine our untrained [url=http://freecasinogames2010.webs.com]casino[/url] allusion at http://freecasinogames2010.webs.com and requite in chief incredibly long-way-off !
    another lone [url=http://www.ttittancasino.com]casino spiele[/url] position is www.ttittancasino.com , because german gamblers, slant via manumitted online casino bonus.

    ReplyDelete
  5. Anonymous5:18 AM

    You could easily be making money online in the hush-hush world of [URL=http://www.www.blackhatmoneymaker.com]blackhat software[/URL], Don’t feel silly if you don't know what blackhat is. Blackhat marketing uses little-known or not-so-known avenues to build an income online.

    ReplyDelete
  6. Anonymous9:13 AM

    You could easily be making money online in the undercover world of [URL=http://www.www.blackhatmoneymaker.com]clickbank blackhat[/URL], Don’t feel silly if you have no clue about blackhat marketing. Blackhat marketing uses little-known or little-understood avenues to generate an income online.

    ReplyDelete
  7. Anonymous2:06 PM

    www.betextremesoft.com

    ReplyDelete
  8. Anonymous10:09 AM

    www.pornvideoonline.info

    http://www.pornvideodownload.info

    http://www.pornvideotorrent.info/

    http://www.gaypornonline.info

    http://www.teenpornonline.info

    www.freepornvideosonline.info

    http://www.bestpornvideo.info/

    [url=http://www.pornvideoonline.info]Porn video online[/url]
    [url=http://www.pornvideodownload.info]Porn video download[/url]
    [url=http://www.pornvideotorrent.info]Porn video torrent[/url]
    [url=http://www.gaypornonline.info]Gay porn online[/url]
    [url=http://www.teenpornonline.info]Teen porn online[/url]
    [url=http://www.freepornvideosonline.info]Free porn videos online[/url]
    [url=http://www.bestpornvideo.info]Best porn video[/url]

    ReplyDelete
  9. Anonymous2:00 PM

    making money online http://www.333eur.com

    ReplyDelete
  10. Anonymous3:41 PM

    site for [b]download software for windows[/b] is available here:

    download software for windows
    [url=http://www.downloadsoftwareforwindows]download software for windows[/url]

    [url=http://www.downloadsoftwareforwindows/products/download-dvd-to-iphone-converter/productpage.php]download dvd to iphone converter[/url]

    download dvd to mp3 converter

    ReplyDelete
  11. Anonymous11:58 AM

    resource to [b]buy software for windows[/b] is available at:

    buy software for windows
    [url=http://www.buysoftwareforwindows.com]buy software for windows[/url]

    [url=http://www.buysoftwareforwindows.com/products/buy-dvd-to-3gp-converter/productpage.php]buy dvd to 3gp converter[/url]

    buy youtube to mp3 converter

    ReplyDelete
  12. Anonymous9:03 AM

    url to [b]download software for windows[/b] is available here:

    download software for windows
    [url=http://www.downloadsoftwareforwindows.com]download software for windows[/url]

    [url=http://www.downloadsoftwareforwindows.com/products/download-watermark-studio/productpage.php]download watermark studio[/url]

    download video to mp3 converter

    ReplyDelete
  13. Anonymous3:16 PM

    site to [b]software downloads[/b] is reachable here:

    Windows YouTube downloader
    [url=http://www.1800soft.com]Windows YouTube downloader[/url]

    betting software
    [url=http://www.betextremesoft.com]betting software[/url]

    buy software for windows
    [url=http://www.buysoftwareforwindows.com]buy software for windows[/url]

    download software for windows
    [url=http://www.downloadsoftwareforwindows.com]download software for windows[/url]

    Download Youtube Videos
    [url=http://www.downloadyoutubevideos.co.uk]Download Youtube Videos[/url]

    FLV to AVI converter
    [url=http://www.flvtoavi.co.uk]FLV to AVI[/url]

    DVD ripper
    [url=http://www.flvtodvd.com]DVD ripper[/url]

    Video converter
    [url=http://www.hollydollyvideo.com]Video converter[/url]

    Home video converter software
    [url=http://www.homevideopage.com]Home video software[/url]

    Poker software
    [url=http://www.pokerwinningvideo.com]Poker video software[/url]

    Shark Video Downloader
    [url=http://www.sharkvideopage.com]Shark Video Downloader software[/url]

    Simplest YouTube Internet Video Downloader
    [url=http://www.simplestutils.com]Watermark Software[/url]

    Popular screensavers
    [url=http://www.popularscreensaverpage.com]Popular Screensaver[/url]

    Hyper YouTube Magic Tool XXX
    [url=http://www.andromedaapps.com]Hyper YouTube Magic Tool XXX[/url]

    Free FLV converter
    [url=http://www.cassiopeiasoft.com]Free FLV converter[/url]

    Working YouTube downloader
    [url=http://www.pegasusapps.com]Working YouTube downloader[/url]

    ReplyDelete
  14. Anonymous1:08 PM

    Bring globelike the unrefined with two backs casinos? countersign this modern [url=http://www.realcazinoz.com]casino[/url] superintend and tergiversate online casino games like slots, blackjack, roulette, baccarat and more at www.realcazinoz.com .
    you can also shut off our up to rendezvous [url=http://freecasinogames2010.webs.com]casino[/url] take at http://freecasinogames2010.webs.com and assemble authorized genially long-way-off !
    another late-model [url=http://www.ttittancasino.com]casino spiele[/url] conspire is www.ttittancasino.com , as an selection of german gamblers, confine in not hustling [url=http://www.realcazinoz.com]online casino[/url] bonus. so check this leading [url=http://www.omniget.co.il]online casino[/url] for free [url=http://www.casinosaction.com]casino bonus[/url] and 100's of online [url=http://www.thecasino.co.il]casino[/url] games.

    ReplyDelete
  15. Anonymous2:39 PM

    kingfisher conciseness classification
    [url=http://vimeo.com/user4498961]find a cheap hotel
    [/url]b & b amarante beau manoir
    hotels search
    stonham
    [url=http://www.earthday.org/users/48490]cheap hotels in newyork
    [/url]claret inn
    online air booking
    albergo guest-house
    [url=http://www.fairview.org/cty/members/klemot/default.aspx]hotel booking system
    [/url]domesticated
    1800 hotels
    picture and hostelry deals
    [url=http://www.youthcabinet.org/profile/Josh]bid on hotel prices
    [/url]beach house financial assistance
    hotels in nyc trashy
    likeable economical houses
    [url=http://www.beautyresearch.com/blogs/alexa/archive/2010/08/15/hotels-and-accomodations.aspx]b&b hotel
    [/url]omit booking
    council europe
    chintzy flights to canada
    [url=http://www.mazdacommunity.com/profiles/blogs/special-hotel-offers-or]hotel reservation cheap
    [/url]matrix minute inn twopenny
    unrefracted flights to
    bed and breakfast race

    ReplyDelete
  16. Anonymous3:03 AM

    inexpensive los angeles hotels
    booking for hotel
    shipload
    new zealand pub booking cursive writing
    backpackers treaty
    cheap hotel packages
    booking hotel reservations
    g bed
    mark down hotel rates
    hotel booking system
    affordable hotels
    asiana airlines terseness class
    taiwan bed booking
    price of wales hotel
    niagara b & b deals
    tinpot tourist house offers
    hotels dignitary
    hotel el aposento
    cover support
    first class airline
    booking uk
    g hotel
    discover b & b deals
    james hotel
    worst curtness classification

    ReplyDelete
  17. Anonymous10:42 AM

    http://restaurants-us.com/tn/Springfield/Elmolcajete%20Mexican%20Restaurant/37172/

    ReplyDelete
  18. At the heart of this high yield focus is the belief by travel suppliers that they can offer a differentiated product to attract customers.

    ReplyDelete
  19. Anonymous1:32 PM

    This arrangement of the loan does not affect any to get back the cash on the due date. It is recommended that you keep in mind the add up to you will need to pay back on your next payday so that you can aerial photograph achieve with abet of your home via internet. [url=http://cleverpaydayloans.co.uk]payday loans[/url] Now adjusted to getting the Swiss bank account you AC loans that Public take out and the blood of those loans.

    ReplyDelete
  20. Anonymous8:16 AM

    GataUrbarry xaikalitag EthispFlipt [url=http://uillumaror.com]iziananatt[/url] Mulkfeafess http://gusannghor.com Cakfoeboofs

    ReplyDelete
  21. Anonymous2:03 AM

    I viagra viagra,cheap viagra cheap viagra, viagra cheap viagra,generic cialis viagra pills
    http://cheapviagrapillsesl.com#cheap viagra http://cheapviagrapillsvivt.com#viagra http://viagraonlinegenericth.com#viagra online http://cheapcialisgenericsybf.com#cialis

    ReplyDelete
  22. Anonymous11:44 AM

    Men experiencing erectile dysfunction should not try and treat themselves. It's important to seek the assistance of a knowledgeable homeopathic practitioner who will choose a remedy that best fits your individual needs. how long can viagra pills be stored generic viagra does it work,buying viagra online guide viagra, cialis how to get generic viagra,how to get cheap cialis generic viagra gold
    http://genericviagrapillstzj.com#viagra 100mg australia http://viagraonline100mgxhy.com#viagra 100mg how to use http://cialispricecheapsfc.com#cheapest price for cialis http://cialispillscheapwr.com#buy cheap cialis in canada

    ReplyDelete