TravelBizBuzz

Today's guest blogger is Glenn Hasen, CEO of Seattle-based QL2 Software

Whether analyzing fare prices on a transcontinental route or changing car rental fees based on specific market conditions, having access to the latest market intelligence, exactly when you need it, is both trickier than ever and one of the most important factors in staying competitive.

In the past, pricing and revenue managers used expensive and time-consuming methods for gathering market intelligence: purchasing syndicated market research, commissioning custom studies, or conducting manual price checks. In recent years, two things simultaneously occurred to render traditional market intelligence methods obsolete. First, the number of suppliers skyrocketed — regional airlines, niche car rental agencies, boutique hotels, etc. Second, a plethora of travel data has come online as the industry has built out its websites and e-commerce capabilities. Today, if gathered and analyzed appropriately, real-time data from the web provides an unparalleled market-intelligence resource; however, it changes rapidly and can be cumbersome to acquire.

This transparency of travel-related market intelligence makes it even more imperative to have access to data that is continuously updated. It’s important to understand what and how your competitors are really selling across all distribution channels. And knowing, for example, precisely when your competitor is out of seats or rental inventory provides an opportunity to further optimize revenue.

Here are some real-world examples of the rewards of real-time market intelligence:

• Carriers A and B go head-to-head in the competitive New York-to-Los Angeles route. Carrier B files a deeply discounted fare. Before matching, Carrier A uses market intelligence tools to “shop” the web and discovers that Carrier B is only offering the sale fare on a late night flight on Tuesdays. Carrier B then decides the sale fare is not significant enough to match and minimizes revenue dilution.

• Car Rental Company A and B compete in various cities. Obtaining and quickly analyzing online data, Company A notices that Company B does not have anymore Economy size cars (ECAR) and Standard size cars (SCAR) available for rent over the next few days. Company A seizes the opportunity by raising rental rates for ECAR and SCAR at same location.

• Hotel A and B compete in a specific location. Hotel A’s automated daily analysis of online pricing and availability information reveals that Hotel B is offering lower room rates for check-in dates 21 days out. Hotel A adjusts to remain competitive and thereby prevents Hotel B from increasing its market share.

Bottom line: All of these examples illustrate the tremendous benefit market intelligence access can have on a company’s revenue stream. These days, having the best and most up-to-date information can often mean the difference between staying ahead of the game — or falling way behind.

Posted by TDR at 01:13 PM | Permalink | Comments (0)

While many Americans were filling up on turkey and watching football this Thanksgiving weekend, JetBlue Airways was busy hammering out the details of its agreements with online travel agencies.

In what is a sign of the new low-cost carrier presence among OTAs, JetBlue has announced partnerships with Priceline.com, Orbitz Worldwide and Travelocity. All three sites will have full access to the airline's published fares, schedules and inventory.

Friends with benefits: In addition, JetBlue will be added to the OTAs' travel-package options. Orbitz will distribute JetBlue fares through its new Orbitz for Business site as well as its CheapTickets brand, while Travelocity reported that JetBlue will soon become part of available Travelocity vacation packages.

JetBlue's emphasis on passenger extras -- satellite television and radio and name-brand snack selection among them -- may have helped the LCC appear more attractive to the sites. "JetBlue offers great in-flight amenities and additional options for our customers," said Travelocity's VP of flights Simon Bramley.

The terms of the agreements remain undisclosed, although Priceline revealed its deal with JetBlue is a multi-year one. JetBlue bookings will be available on all three sites effective immediately.

-- Scott Walker, Editor in Chief, TDR

Posted by TDR at 02:17 PM | Permalink | Comments (0)

Tongues are wagging about the prospect of a United-Delta merger that emerged from the rumor mill last week. And while there are good reasons not to believe this particular deal will actually move forward, you should expect some merger action among major carriers -- and a significant shift in the marketplace in the near future.

Of course, merger rumors have been rampant for quite a while. “Most pundits have been saying that we have a capacity problem: too many seats,” Eric Smith, co-chair of the aviation practice group at Schnader, Harrison, Segal & Lewis in Pittsburgh, tells TDR. Continental Airlines has been the focus of merger rumors for over a year, Smith points out.

But the United-Delta chatter has been the loudest. So what’s it all mean?

For the LCCs, there's potential for pricing flexibility, if not much new market share. Meanwhile, the GDSs had best prepare to face a negotiation batter, and travel agencies should get ready for some puzzled customers. Want more details on these coming industry changes? Read the cover story in TDR Vol.15 No.25. Not a subscriber? Sign up here.

-- Scott Walker, Editor in Chief, TDR

Posted by TDR at 02:09 PM | Permalink | Comments (0)

Southwest Airlines is out to win over suits with some changes to the way it serves them. Announced Nov. 7, a new "Business Select" fare guarantees customers will be first to board the plane, promises a free onboard cocktail and bestows extra Rapid Rewards credit for the flight.

"We know that our true road warriors want to make traveling on Southwest Airlines as quick and easy as possible, and providing the choice to be among the first to board is key," said Kevin Krone, Southwest's VP of of marketing, sales and distribution.

Recent changes to the Rapid Rewards program also cater to travelers looking for special attention. Now members who have flown 32 one-way flights or 16 roundtrips in a year will gain a spot on the airline's "A-List," which offers them automatic check-in in advance of flight departure, thereby giving them a fighting chance to grab an "A" boarding pass. Plus, a new "Freedom Award" promises travelers a chance to book a rewards flight with no blackout date restrictions.

"As promised Southwest has made value added improvements that will differentiate our product without changing our core business," said Gary Kelly, Southwest CEO.

-- Scott Walker, Editor in Chief, TDR

Posted by TDR at 02:08 PM | Permalink | Comments (0)

The International Air Transport Association (IATA) has established a global standard for mobile phone check-in using two-dimensional bar codes, according to an Oct. 11 release.

The innovation will allow airlines to send codes directly to passengers' phones (or other handheld devices). The code becomes the boarding pass, and a scanner can read it directly from the mobile device's screen. IATA's standard uses codes that are already used extensively in Europe, North America and Japan.

Next step: IATA plans to create guidelines for implementing the standard. The industry deadline for 100 percent bar coded boarding passes is 2010.

Challenge for mobile marketers: The mobile phone check-in will be a "tough sell" because no one wants (to see or pay for) advertisements on his or her cell phone, Diane Clarkson, a JupiterResearch analyst, tells TDR. This innovation has taken off in some international markets, but it will be slow in the U.S., she predicts.

-- Kimberly R. Gilbert, Managing Editor, TDR

Posted by TDR at 01:02 PM | Permalink | Comments (0)