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CHAPTER 2: THE MARKET FOR AIR TRANSPORT SERVICES

CHAPTER 2: THE MARKET FOR AIR TRANSPORT SERVICES. What Business Are We In? TRANSPORTATION COMMUNICATION LEISURE LOGISTIC INFORMATION SELLING SERVICES. Do you think transportation is important for social need and why?. What kind of transportation we have now?.

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CHAPTER 2: THE MARKET FOR AIR TRANSPORT SERVICES

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  1. CHAPTER 2:THE MARKET FOR AIR TRANSPORT SERVICES What Business Are We In? • TRANSPORTATION • COMMUNICATION • LEISURE • LOGISTIC • INFORMATION • SELLING SERVICES

  2. Do you think transportation is important for social need and why? • What kind of transportation we have now?

  3. THE MARKET FOR AIR TRANSPORT SERVICES • What Business Are We In? • Transportation • Long haul • Short haul • Door 2 door • Special service • etc

  4. CHAPTER 2:THE MARKET FOR AIR TRANSPORT SERVICES What Business Are We In? • TRANSPORTATION • COMMUNICATION • LEISURE • LOGISTIC • INFORMATION • SELLING SERVICES

  5. Example of communication we have now? • Telephone, • Internet, • Video conference • etc

  6. THE MARKET FOR AIR TRANSPORT SERVICES • What Business Are We In? • b) Communication • - face to face meeting • urgent business deal • day trip • Business Competitor?

  7. CHAPTER 2:THE MARKET FOR AIR TRANSPORT SERVICES What Business Are We In? • TRANSPORTATION • COMMUNICATION • LEISURE • LOGISTIC • INFORMATION • SELLING SERVICES

  8. THE MARKET FOR AIR TRANSPORT SERVICES • What Business Are We In? • c) Leisure & holiday • customers disposable income • disposable time • leisure holidays • Leisure activities

  9. CHAPTER 2:THE MARKET FOR AIR TRANSPORT SERVICES What Business Are We In? • TRANSPORTATION • COMMUNICATION • LEISURE • LOGISTIC • INFORMATION • SELLING SERVICES

  10. THE MARKET FOR AIR TRANSPORT SERVICES • What Business Are We In? • d) Logistics • Air freight • - fast transportation of goods • - meeting dateline any ideas….

  11. CHAPTER 2:THE MARKET FOR AIR TRANSPORT SERVICES What Business Are We In? • TRANSPORTATION • COMMUNICATION • LEISURE • LOGISTIC • INFORMATION • SELLING SERVICES

  12. THE MARKET FOR AIR TRANSPORT SERVICES What Business Are We In? e) Information - moving urgent documents - transportation of news Docs, items, samples, products

  13. CHAPTER 2:THE MARKET FOR AIR TRANSPORT SERVICES What Business Are We In? • TRANSPORTATION • COMMUNICATION • LEISURE • LOGISTIC • INFORMATION • SELLING SERVICES

  14. THE MARKET FOR AIR TRANSPORT SERVICES What Business Are We In? f) Selling services Ground Handling Airport Management

  15. THE MARKET FOR AIR TRANSPORT SERVICES What Business Are We In? f) Selling services Catering In-flight Entertainment

  16. THE MARKET FOR AIR TRANSPORT SERVICES What Business Are We In? f) Selling services Piloting Engineering

  17. THE MARKET FOR AIR TRANSPORT SERVICES What Business Are We In? f) Selling services Cabin services Reservation/ticketing

  18. THE MARKET FOR AIR TRANSPORT SERVICES What Business Are We In? f) Selling services Dubai airport Duty Free Shops

  19. Chapter 2:The Market of Air Transport Services • Who Are The Consumer and Customers? • Market Segmentation?

  20. Who Are The Consumer and Customers?

  21. THE AIRLINE CUSTOMERS The Consumers --- “ARE THOSE PEOPLE WHO ACTUALLY TRAVEL” The Customers --- “They Are The Decision Makers”

  22. CHAPTER 2: 4 CUSTOMER DECISION WHICH MUST BE ANALYSED

  23. CHAPTER 2:UNDERSTAND THE AIRLINE MARKET • The general customer need • Industrial buying behavior • The customers in the “business air travel market” • Leisure & Holiday Travel Market • Customers - Air Freight Market

  24. CHAPTER 2: The General Customers Needs

  25. UNDERSTANDING THE AIRLINE MARKET • The General Customers Needs

  26. The General Customers Needs

  27. The General Customers Needs

  28. The General Customers Needs

  29. CHAPTER 2:UNDERSTAND THE AIRLINE MARKET • The general customer need • Industrial buying behavior • The customers in the “business air travel market” • Leisure & Holiday Travel Market • Customers - Air Freight Market

  30. CHAPTER 2:UNDERSTAND AIRLINE MARKETING 2.Industrial Buying Behavior – DMU(decision Making Unit) • Decider • Gatekeeper • User • Buyer • Influencer

  31. Industrial Buying Behavior – DMU (decision Making Unit) • Decider - he makes the final decision: owner, CEO, Senior Manager, • Gatekeeper – those people who control the flow of information into decision-unit. e.g.: PA protect their Boss from times wasting visit, unwelcome sales people. • User– those people who use the product or service, concern about quality , cost • Buyer – negotiate to get the best deal, expect reward from savings • Influencer– those people who don’t use a product, but who influence the final outcome-e. g: government, civil, • -Please read page:12-14

  32. CHAPTER 2:UNDERSTAND THE AIRLINE MARKET • The general customer need • Industrial buying behavior • The customers in the “business air travel market” • Leisure & Holiday Travel Market • Customers - Air Freight Market

  33. CHAPTER 2:UNDERSTAND THE AIRLINE MARKETING • 3. The Customers in the “Business Air Travel Market” • Secretaries who makes bookings for their bosses – understand the bosses requirements, • Travel agents – 80% of bookings, • Corporate Travel Manager – special task • Customers – who provide feedback • Please read page 15-17

  34. CHAPTER 2:UNDERSTAND THE AIRLINE MARKET • The general customer need • Industrial buying behavior • The customers in the “business air travel market” • Leisure & Holiday Travel Market • Customers - Air Freight Market

  35. 4. Leisure & Holiday Travel Market A) Their Concerned ~Is there other/better mode of travel ~Service and quality Challenges from surface & ground transport B) Children – facilities for children & babies ~women – UK, well plan program C) Travel agent ~ provide package, visa etc D) Tour operators ~ organizes travel in groups E) Consolidators ~bucket shops, block seats to sell on discount CHAPTER 2:UNDERSTAND THE AIRLINE MARKETING

  36. CHAPTER 2:UNDERSTAND THE AIRLINE MARKET • The general customer need • Industrial buying behavior • The customers in the “business air travel market” • Leisure & Holiday Travel Market • Customers - Air Freight Market

  37. CHAPTER 2:UNDERSTAND THE AIRLINE MARKETING • 5. Customers - Air Freight Market • The Freight Forwarders • – 90% of business • b) The Senior Management of • Freight Forwarders • – decides on the airlines carrier • The forwarder’s clerks-decides on the emergency shipment and at late night • The integrator-a complete-services, door to door, FedEx, ups

  38. What are the different between LCC compare with the other commercial Airlines??

  39. Exercise!! • What is the Low cost carrier? • What is characteristic? • What LCC do and DO not do?

  40. CHAPTER 2:MARKET SEGMENTATION Definition 1: ~~A market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs~~

  41. CHAPTER 2:MARKET SEGMENTATION • The Air Passenger Market • Air Freight Market • Selection of Airline

  42. CHAPTER 2:MARKET SEGMENTATION • The Air Passenger Market • a) Journey Purpose - • b)Length of Journey- • c) Country/Culture of Origin of Traveler-

  43. MARKET SEGMENTATION • 1. The Air Passenger Market • a) Journey Purpose • - Pilgrim visits: Mecca, India, Malaysia • - Corporate business travel; services is important • - Independent business travel: cost factor is important

  44. MARKET SEGMENTATION 1. The Air Passenger Market - cont a) Journey Purpose-cont - Leisure holiday: high disposable income to cover accommodation and meals - Leisure travel visiting relatives: lower disposable income

  45. CHAPTER 2:MARKET SEGMENTATION • The Air Passenger Market • a) Journey Purpose - • b)Length of Journey- • c) Country/Culture of Origin of Traveler-

  46. MARKET SEGMENTATION • 1. The Air Passenger Market - cont • b) Length of Journey • - Short-haul-route: • flight time less than an hour, • airport location and service, • frequency and timing • seats accessibility/ticket flexibility

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