5. Airline e-Commerce

⭐ Key features of e-Commerce (ii)

Benefits of e-commerce
(? help improve how airline works)

Drivers for Change

✏ From LT 10: Supporting Corporate Mission


Long Term


  • Sustainability, strategic decision making
  • Supported by Strategic Report (SR)

Short Term


  • Tactical decision making
  • Supported by Operation Report (OR)

11. Increase productivity


  • B2B e-Commerce streamlines & improve supply chain processes
  • Save time & money
  • Communicate & transact with distributor & cust. in more cost-effective & timely manner

9. Real-time info, Up-to-date

8. Integration


  • Enhance cust. service
  • Single point of access
  • Seamless access & sharing of info
  • Electronic data exchange (EDX)

7. One-to-one + 14. Enhance Biz Intelligence


  • Enhance business intelligence (Data mining, CRM, Profiling)

6. Interactivity


  • Person-to-person
  • Person-to-application
  • Interaction wide-ranging, varied, engaging

10. Reduce costs


  • 9x cheaper than paper tix

⭐ Key features of e-Commerce (i)

4. Digitisation


  • Digitally entered, stored, exchanged
  • Less prone to error
  • Entered by source/provider (Accurate & Up-to-date)
  • Reusable for lifespan of info
  • Real-time information (Flight infos)
  • Seamless integration with other services (Operating/Strategic reporting, Accounts, Marketing, Research)

3. Global


  • Accessible anytime anywhere

2. Ubiquity


  • Available & accessible on all electronic platforms, 24-7

1. Online/Immediate/24-7/Directly connect buyers & sellers


  • Time independence
  • Global presence
  • Overcoming time differences
  • Self-service

⭐ Key features of e-Commerce (iii)

13. Strengthen Customer Relationships


  • Access detailed research reports,
    product specs, price comparisons

12. Improve level of Customer Service


  • Cust. can self-help
  • Complete paperwork online
  • OTOT

15. Increase direct sales of products/services


  • Biz reach out to all via web, 24-7
  • "Self-service" environment for lower prices, provide detailed product info
  • Faster time to new market services

5. Multimedia


  • Personalise
  • Higher cust. satisfaction
  • Selection of meal & seat

16. Generate advertising, sponsorship/brokerage revenue


  • Generate revenue thru advertising/sponsorship with other sites
  • Infomediary acts as springboard for them & earn brokerage fee
  • Technology is pervasive
  • Adoption is high, especially among next gen
  • Cust demand increasing, becoming more complex
  • Penetration of e-commerce in many service sectors
  • User comfortable with e-payment
  • New market segments are IT-savy
  • Cultural habits of country

Why are airline implementing e-Commerce?


  • Need to improve productivity & cost efficiency
  • Reduce dependency on 3rd parties intermediaries
  • Need for stronger & direct connection with cust.
  • Effective use of new media = airlines increase marketing power
  • Airline pricing can be more dynamic, interactive, real-time, and market-focused