Evolution of distribution 

Todays saturated markets mean there is much more to consider from an airline’s point of view in regards to a distribution conept. If you are to target all the market segments that suit your airline business, you will need to handle multiple distribution channels that meet the requirements of each segment. It goes without saying that this should be accompanied by a maximum reduction in distribution costs. All this points towards the implementation of a distribution system and process which emphasizes cost efficiency and is clearly focused on a cost benefit analysis.
Nevertheless implementing more distribution channels, such as GDS access, and building up a hybrid airline business model by addressing more market segments, such as selling charter (soft) allotments, includes the high risk of building more complexity than an airline can bear.

OUR SUPPORT

PROLOGIS will support you with analysis of your business and marketplace in detail and help you to come to the right decision concerning:

Evaluation of adequate reservation & distribution systems in terms of e.g.

• Reducing distribution costs
• Optimized & lean processes
• Flexibility & capability of handling extreme booking peaks (e.g. online special sales)
• System flexibility and availability to grow capacity together with airline growth

Evaluation of existing and possible future distribution channels with a detailed cost benefit analysis and testing, e.g.

• Costs- vs. additional turnover and proportions of lost vs. gained demand in case of
  
  • Distribution will be focused on one channel (e.g. internet)
  • Possible introduction of different fares per distribution channel
• Introduction of more market segments to address (depending on network and business model)
  
  • Corporates (corporate booking website)
  • Agents (via web/GDS)
  • Tour operators / groups
  • Interlining & codesharing
    
    • Definition of processes to sell each other’s seats
    • Messaging / data transfer
    • Accounting / clearance
    • Liability (e.g. missed connecting flights)
  • e-Ticketing
  • Evaluation of cross-selling potential
    
    • Ancillary products
    • Special services
      
      • seat reservation
      • catering
      • baggage (sport etc)
      • loyalty program (how to handle with codeshare partner?)

PROLOGIS has several years of experience in working with various Reservation and Distribution systems. PROLOGIS supports selection, implementation of systems as well as important preceding tasks like business process optimization and conceptual design to use the system in its best way.

PROLOGIS supported selection, implementation as well as optimization support during productions phase for systems like:

• AirKiosk
• Amadeus
• CranePax
• IBS
• New Skies
• Radixx
• SITA
• Sabre
• TikAero

Do you have any questions or would you like more information? We look forward to hearing from you!

Contact: Gerd Pontius