Month: October 2012

Per ARC, YTD Mega agencies are holding steady on Domestic Air Tickets Issued

According to the Airline Reporting Corporation, for all three quarters to date of 2012, Mega Agencies have issued 25% of the domestic airline tickets issued by the agency community. The Online Travel Agencies (OTAs) grew as a percentage of total transactions (42%) in the 2nd quarter, but reverted back to 41% of total agency sales […]

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International gap between travel agents and online grows larger

This is the second in a series of blogs this week about the 3Q2012 Airline Reporting Corporation  statistics.   Today’s topic is the average value of an international airline ticket. This graphic tells several stories.   First, it shows that quarter over quarter, for the first quarter all channels were up as it relates to […]

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Year to date ARC sales are up

According to the Airlines Reporting Corporation, as of the end of the 3rd quarter there are just 13,709 travel agencies in the US.  These agencies have produced air ticket sales of $66.6b year to date, up 3.77% from the previous year to date number.   That $66.6b is broken down as follows: Domestic Fares   […]

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The Online/Brick and Mortar agency gap is widening on domestic ticket sales

As the GDS/Airline battle is being waged in a courtroom in a state district court in Texas, I’d like to take this opportunity to put to rest the discussion about the profitability of airline direct versus the GDS driven agency channel.   This is the first in a series of blogs this week about the […]

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Top 10 Travel Distribution Fallacies – #11 The Air Traveler is where the money is

The Air Traveler is where the money is   This particular fallacy is perhaps the most powerful and disturbing of all. It is one that to this day, still astounds me. Not because it is difficult to prove, which it is not.  But because even faced with proof, the industry as a whole, including the […]

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Top 10 Travel Distribution Fallacies – #1 Consumers will purchase how and where I want them to

Consumers will purchase how and where I want them to Although this seems hard to believe, there are still suppliers and intermediaries who believe this to be true. They are myopic in their approach to customers and do not believe the power has shifted to the consumer, nor do they understand the role that this […]

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Top 10 Travel Distribution Fallacies – #2 If distribution costs come in line, the industry will be healthy again

If distribution costs come in line, the industry will be healthy again Distribution is a portion of marketing, and marketing is a key cost component for suppliers, but other costs (like labor and capital) have a much greater impact on the bottom line, as does revenue. In many sectors of the industry, pricing and yield […]

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Top 10 Travel Distribution Fallacies – #3 Revenue is King

Revenue is King All revenue is not good revenue. As you operate on a Profit and Loss (P&L) basis, if your costs constantly exceed your revenue, you will eventually fail. Top line growth may appear beneficial, but cost (versus revenue) as part of the success equation cannot be denied. Profitability is king, long live the […]

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Top 10 Travel Distribution Fallacies – #4 A customer is a customer is a customer

A customer is a customer is a customer Customers come in all shapes, colors and sizes and like it or not, they are multi-channel. Once you think you know your customer, they change behavior [and channels] without notice. Sometimes it is a shift due to a change in purpose of trip or who they are […]

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Top 10 Travel Distribution Fallacies – #5 Technology is a business driver

Technology is a business driver I have made my living as a technology strategist.  So trust me, I am not anti-technology.  In fact, I thrive on innovation and have often been caught ahead of the curve, or as we say “on the bleeding edge”. In the travel industry, technology may be an enabler, but it […]

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