1 / 9

Airlines and The Bid Process

Understanding the bid process in the airline industry can help consumers secure better deals. Airlines offer static and dynamic pricing, with clubs entertaining 2-6 bids. Supplier offers play a key role. United Airlines faced issues in the 2013/14 season with double bookings. Operators can influence pricing strategies, benefitting both airlines and consumers. Multi-bid concepts aim to balance demand and pricing. Discounts for Frequent Fliers can significantly impact ticket prices, depending on miles saved. Creating a Multi-Bid Proposal can enhance collaboration in the industry.

ingraml
Download Presentation

Airlines and The Bid Process

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Airlines and The Bid Process

  2. Airlines and The Bid Process Average Ski Club Trip = ~$45,000 If you buy a $45,000 car How many dealers will you visit Club often entertain 2-6 bid

  3. Airlines and The Bid Process Supplier offer Static and Dynamic Pricing Resorts are Static Airlines are Dynamic To bid seats must be booked

  4. Airlines and The Bid Process United Airlines in the 2013/14 season Booked 94,341 club seats Flew 15,997 passengers Had 78,344 excess seats Estimated 47,000 seats are double booked.

  5. Airlines and The Bid Process Tour Operator A that controls the air, control the game Airlines only allow a club to hold one block of seats Operator B, C, D, E book under fake names or change dates A defense against excess demand is excess pricing In May RM is counting their Christmas bonus September “what the hell happened” Prices then drop with more availability Club members then find cheaper seats

  6. Airlines and The Bid Process Change the consumer to one bid---Never Change the airlines--Possibly

  7. Airlines and The Bid Process Multi Bid Concept Airlines know when a group is booked Advantage Airline Better grasp of demand Book more groups Advantage Consumer Levels playing field Reduce Fire Sale Lower Prices

  8. Airlines and The Bid Process Next Step By myself or w/industry write a Multi Bid Proposal NSCF submits to Revenue Managers at United American Delta Endorsed by tour operators & ski resort

  9. Delta Frequent Flier Policy Discounted Ticket 25% of the normal FF credits Discounts are as follows assuming a two segment flight. $303.20-394.57 3% $394.58-690.19 7% $690.20+ 10% Assume average ticket price is $475.20 Discount is $28 on base fare Actual price $445.10 Miles flown ~4,000 25,000 miles = $380 should you buy the ticket Value depends on how many miles you have saved 25,000 might equal $700 3,000,000 might equal $100 4000/25000 x $380*75% (still get 25% of miles)= $45.60 in lost FF value in exchange for a $29.90 in group savings Value is only for those that have Delta FF account

More Related