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Repositioning AKL – Growing High Value Customer Base

Repositioning AKL – Growing High Value Customer Base . determi nation nz. Routes – Competition for aircraft is fierce. Routes “speed dating” for airlines/airports. Facts 2 Days 350 Airlines 750 Airports 2300 Attendees 28,000 Meetings. Market Development Loop. Market Development Model &

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Repositioning AKL – Growing High Value Customer Base

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  1. Repositioning AKL – Growing High Value Customer Base determinationnz

  2. Routes – Competition for aircraft is fierce Routes “speed dating” for airlines/airports • Facts • 2 Days • 350 Airlines • 750 Airports • 2300 Attendees • 28,000 Meetings

  3. Market Development Loop Market Development Model & Techniques Target growth market segments through considered and detailed analysis of markets. Learning from results to improve our knowledge and develop sustainable market structure. 5. Results Analysis 1. Opportunity Analysis 4.Capacity Growth Securing capacity growth is a fundamental outcome of the demand stimulation. 2. Key Influencer 3. Market Stimulation Work with key influencers for the route and market. This can be industry partner, airline, airline executive, politician, consumer opinion leaders or distribution agent. Stimulate through influencers, remove impediments to growth (Visas etc), create market segmentation, building high value markets, develop market structure.

  4. Need to stand out from the crowd Routes “speed dating” for airlines/airports

  5. In Guangzhou previously limited promotion as less capacity

  6. Develop programmes to advance capacity

  7. Guangzhou Daily Travel session: 4th Jan 2011 GZL & AIAL JV adverts about CNY and high season products

  8. Build the alliance connections and advance the market.

  9. Develop greater connections and more capacity

  10. 34 international destinations 10

  11. We have already gained commitment to an extra1.5 million seats in the last 2 years.

  12. Population size of countries accessed by direct flight

  13. If we target high net value passengers

  14. Asia is NZ Tourism’s growth engine

  15. Asia for Building India Traffic Volumes

  16. Competing with Australia – International Arrival Forecasts

  17. AKL’s existing First & Business Class demand generates a 42% loading in Premium Seats

  18. However, AKL has approximately the same number of premium seats as MEL

  19. Over the coming year, premium seats at AKL are expected to rise by 113k, or 11% Overall international seat capacity at AKL is expected to rise 9% to YE April 2012

  20. CZ has a very high proportion of premium cabin seats in the AKL market It is expected that 15.8% of the UA AKL-IAH service seats will be in premium cabins

  21. Singapore and London have the highest proportion of premium cabin demand

  22. China is scarily big with massive wealth! • 1.34 billion people • China replaced the United States as NZ's second-largest export market at US$2.66 billion. • 57 million outbound trips in 2010 • NZ currently 0.2% of market. • One in every 175 people in Shanghai has personal wealth of US $1.5 Million. • Estimated 4,000 RMB billionaires in China. • 30% of London luxury good sales made to Chinese travellers.

  23. Get ready for the growth Outbound growth of 77% over next 10 years to over 100 million Growth of 77%

  24. Targeting the wealth and social media • 30 % of London premium goods sales sold to Chinese travelers. • By 2015 China will be No 1 market for luxury goods, with annual sales of $14.6 billion • Mercedes Benz report 128 % growth in first 10mths of year. • “ • Facts • Internet users in China 420 million • 19.8 hours per week per user • USD 36.5 billion online shopping • 176 million social network users • 265 million on online gaming

  25. Development of high value travel from China

  26. There are 1.2m O/D passengers per year between Asia & Latin America.

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