Easy Jet, apparently one of the most successfull airlines in Europe generates 98% of its flight bookings online. 20% of their customers are business travelers. Last year the airline decided to enter the Holiday business by adding hotel/car packages to its "product line" and launching a new site for the purpose. John Kohlsaat said that the airline wanted to take advantage of their success selling flights online and therefore entered the holiday space as an additional source of revenue. Easyjet specializes in short haul trips all over Europe (except in France where airlines are not allowed to offer package according to a member of the audience). What this presentation reminds me of is the enormous competition that exists online for travellers' attention and share of wallet (the morning session had European Online Travel Agencies discussing their business - OTA business models continue to change both in Europe and the U.S. Transaction commissions and merchant fees are being challenged by a variety of advertising and referral revenue streams.)
-
Here's a video snippet of the Q&A following Mr. Kohlsaat's presentation. I wonder if this is the model that WestJet in Canada is following? Any comments?
regards from Berlin,
Jaime
No comments:
Post a Comment