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