Ai Video: Time for airlines to look beyond the “Where to Go?” option

First Published on 13th August, 2018

Be it for having a bigger say early on in the booking funnel to targeting the second wallet of the traveller, airlines are looking at transforming themselves to make the most of every interaction on their digital assets.

One of the relatively higher margin products that has gained traction in the recent past is the tours and activities segment. “When you think of your last vacation, (in all probability) more than the airline you flew with or the hotel you stayed at, you tend to think of what experiences you indulged in or the activities you enjoyed while being in the destination,” says Shane Mayer, Director of Business Development and Partnerships at GetYourGuide.

From financial gains perspective, Mayer added that this segment can result in “hotel-like commissions” for a travel e-commerce player (coming around a net margin of 15%). Around $130 billion in spent annually on tours and activities. As for selling options for airlines, they can opt for a white-label solution, opt for API connectivity or use widgets. “We on an average drive €10-15 to our partners per transaction,” shared Mayer, who also added that the company runs their customer service department in-house to serve the travellers.   

More than revenue generation, destination discovery is being seen as a big opportunity for airlines to overcome commoditization of their core offering. Airlines need to increase the width of their funnel to allow for a higher quality of user engagement. This can happen earlier on in the booking process by focusing on destination content and related inventory (be it for tours, activities transportation etc.), and via a layer of intelligence that ensures that airlines understand the preferences of travellers. “(It is about) extending your brand into a destination and shaping a trip into an amazing experience,” said Mayer.

 

 

Hear from experts about targeting the `second wallet’ at the upcoming Mega Event Asia-Pacific (Ancillary, Loyalty and Co-Brand Conferences) to be held in Bangkok, Thailand (28-30 August, 2018).

Follow Ai on Twitter: @Ai_Connects_Us

 

 

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