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The retail industry has shown repeatedly that online advertising and marketing initiatives positively influence offline behaviors and sales at the bricks and mortar level. A similar opportunity now exists for airlines to influence onboard consumer behavior and sales through their web sites. Since the Internet is always open it presents an ideal platform to introduce new onboard initiatives in the booking path. that can enhance travel experience by focusing initiatives on specific destinations.
The Internet is one of the key sources of growing revenue for the travel industry and airlines in particular. According to comScore Media Metrix US airline sites attract approximately 30 million unique visitors monthly (out of a possible 75 million online travel visitors) and they generate, on average, approximately US$4B in online travel consumer sales monthly. Even in a down economy travel e-commerce spend is showing signs of life for carriers. Many of them have established in-house e-commerce teams to manage full-board web retailing operations. All in all, airline web sites are quickly becoming some of the most popular travel destinations on the web today. As a result, airlines have experienced higher dollar per average transaction growth than any other online travel category this year. And, it looks like this traction will continue.
While more consumers begin their travel shopping with sites like Expedia, Orbitzand Travelocity because they seek the least expensive flight, branded airline sites have the advantage of offering reward miles, pre-ordering meals and other services, and with the integration of onboard retail technology and merchandising, they now have the potential to deliver a brand new onboard experience thereby relegating the cost of an airline ticket to less influence in the purchase decision.
To achieve this buying behaviour, airlines must think about all their customer touch points beginning with their web sites and build meaningful value in context of travellers’ destinations and their return home. This way, carriers can capture additional sales through offers advertised on the airline site that are transacted and consumed onboard or potentially elsewhere. During an average flight of 3.5 hours travelers can get the most of their time and their trip by purchasing ground transportation to their hotel, tickets to the theatre, museum or a sporting event, gifts for that special someone; or even renting a mobile phone with discounted long-distance, for example.
Web site traffic provides the least cost route to building broad consumer awareness of the products and services available onboard on any particular flight. The confirmation and itinerary print out can reinforce the availability of these options in-flight. The onboard transaction technology serves to fulfill those products or services, while the integrated onboard merchandising service can be used to up-sell and-cross sell buying interests established in the booking path. With the GuestLogix OnTouch™ service, carriers can even continue to support their passengers by fulfilling their travel wants and needs once they departed the aircraft.
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