The Importance of business travellers for Airlines

Résumé du document

We can say that business travellers are people who need to travel as a part of their job to increase their company's revenue or to represent their company in another place. As they travel many times in a year (ten times the leisure traveller in average), they have a high expectancy of the airlines. These travellers are really important for Airlines, the highest revenue part of the margin represent 29% instead of 5% for leisure travellers. And to maintain this profitable niche market, Airlines have to deal with their exigencies and adapt a business model. The Airline Marketing mix (Product, Pricing, Place, Promotions) is really important to attract business travellers who are looking for special features like providing good in-flight services such as meals, internet and so on. Airlines organize themselves as alliances, to attract more number of travellers and increase their incomes by getting more schedule planes by sharing code slots. All these points show us how important business travellers are for airlines.

Extraits

[...] Table of content Executive Summary 2 Table of Figure 3 Introduction : 3 The characteristics of business travellers What is a business traveller ? 4 Price Elasticity High average of travel a year High expectance about the service provided by Airlines 2)The Importance of business travellers for different airlines and airline business models Business Travellers, a profitable market Airlines Business model Airline's Marketing mix and business travellers Products Price Place Promotion Current developments Conclusion : 13 References : 13 Table of Figure Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7 Figure 8 Figure 9 Figure 10 Figure 11 Figure 12 Figure 13 Introduction Business Travellers are essential for Airlines. [...]

[...] 5th ed. Essex: FT Prentice Hall - P. Hanlon (1999). Global Airlines. 2nd ed. Burlington: Butterworth- Heinemann. 181-250. - R. Doganis (2002). Flying off Course, the Economics of International Airlines. [...]

[...] Do Airlines use slots efficiently. In: Czerny, Forsyth, Gillen, Niemeier Airport Slots International Experiences and options for reform. Burlington: Ashgate Publishing ltd . 151-155. [...]

[...] And for a short haul they will mostly buy an economy tickets. But that also depend on the rank of the person within the company. The following table is extract from Pat Hanlon's Global Airlines and shows us the sharing of business travellers within different Class. That was the usual way of booking ticket but since the 2008 recession company think about making people travel twice because it cost money, and now they can't afford this luxury. The characteristics of business travellers What is a business traveller? [...]

[...] "it allows passenger (especially the business travellers) to get accustomed to specific airline schedules, herby reducing passenger search and transaction cost". Jörg Bauer (2008). Promotion Airlines also can propose promotion to their customer on a punctually basis like special offer that can be found in magazines or on a regular basis thanks to the regular flight program. We can give the example of British Airways who passed an agreement with American Express to furnish a special credit card to its best customer, this credit card will permit to get a mile for each spend with the card. [...]