Upload
others
View
4
Download
0
Embed Size (px)
Citation preview
THE FUNDAMENTALS OF
ROUTE DEVELOPMENT
MARKETING TO AIRLINES AND THE “PERFECT” PRESENTATIONMODULE 10
asm-global.com
MODULE 10 S
AIRLINE FEEDBACK
asm-global.com
MODULE 10 AIRLINE FEEDBACKS
“We gather much of the airline-related data (e.g. pax profiles by route, airline schedules) from our own sources and
don't necessarily need them from airports”.
“A profit/loss assessment is least important because the airline will calculate this on its
own, using internal data; the airport or consultant's data will not be as accurate, so it's
better for the airport to focus on and share other data about its market that is not
generally available to the airline route planner.”
“Legal aspects of international operations, e.g. intergovernmental air traffic
agreements”.
“Information about leakage and transfer versus point to point very useful”.
“The key consideration is airport needs to make a case on traffic segmentation to ensure viable service vis a vis
airline competitiveness and positioning”.
asm-global.com
MODULE 10 AIRLINE FEEDBACKS
“Information about leakage and transfer versus point to point very useful”.
“When an airport proposes a new route to a city that is not one of the airline's hubs, it usually means they have not
done their homework”.
“A crystal clear understanding of our business is not required, but should be inherent in the nature of business
proposals - i.e. do not suggest something which based on information reasonably available to the public would not
be in scope.”
“Knowing if there are marketing/advertising/incentive funds available to support new routes (how much and in
what form) is helpful”.
asm-global.com
MODULE 10 AIRLINE FEEDBACKS
“Information about leakage and transfer versus point to point very useful”.
“Airports need to understand better airlines' different business models and
suitability to the routes they are proposing”.
“Continue to approach in a collaborative effort along with ways in minimize startup
costs”
“For full service airlines seeking to attract corporate passengers, a partnership with the local business
community and attendance at some Routes events could be interesting for airlines”.
“Route analysis with proposed schedule, economics of the flight, incentives scheme, contact of local
tourism organizations and big corporates, and legal study of the route”.
“Work as a destination rather than individual
entities in a location”. “Better understanding of what the Airline's Network Strategy is to be able
to present clearly what will attract the airlines attention”.
“Identify opportunities to reduce airport costs for
airlines and customers”.
asm-global.com
MODULE 10 AIRLINE FEEDBACKS
Airline Survey: If Route development were perfect what would it look like?
“Information about leakage and transfer versus point to point very useful”.
“Airports need to understand the small profit margins airlines obtain and how
these margins are placed under severe pressure with a slight increase in costs” .
“Identify opportunities to reduce airport costs for
airlines and customers”.
“A positive outcome (meaning profits) for every new route, with honest and open
collaboration along the way”. “It would be fully in sync with what airlines are seeking to
do”.
“A detailed accurate set of numbers in a business case covering all risks to airline should a new route be introduced”.
“Tourism would fund 50% of route marketing, airport charges are abolished and instead airport drives revenues from non aeronautical
revenues”.
“More balanced profits for both airports and airlines”.
“Increased willingness to participate in the financial risk of launching and successfully maintaining a new
route”.
“Understand our priorities - ideally get a pretty good idea from publicly available sources/consultants. Reach out to us in advance for quick pointers
on our priorities pre-meeting. Present clear succinct information to us. We need sustainable long term cost base which includes certainty from our
airport partners and rewards ongoing growth with declining year on year costs”.
asm-global.com
MODULE 10 S
“Perfect Presentations”
Are about…
asm-global.com
MODULE 10 “PERFECT PRESENTATIONS”
Numbers
asm-global.com
MODULE 10 TRAFFIC FORECAST
Example illustrates the depth
of detail airline will want to
see.
Network carriers consider the
breakdown by segment type.
For point to point carriers can
focus on local traffic only.
Airlines will do their own
forecast, but this gives the
pitch credibility and
demonstrates that a scientific
approach has been taken to
show that the opportunity is
viable.
Beyond/Behind Passenger Forecast
Detail relevant for network carriers.
Statement about strength of forecast and view of resultant market share. If perceived
weakness relative to other choices then mitigation measures need to follow.
asm-global.com
MODULE 10 MARKET SIZE DATA
• How big is the
market today?
• Which airlines are
carrying the
traffic?
• How much is
direct vs. indirect?
• Through which
hubs are indirect
passengers
connecting?
asm-global.com
MODULE 10 MARKET SIZE COMPARATORS
• What are our
largest unserved
markets
• What are the
largest unserved
markets for our
target airline
asm-global.com
MODULE 10 AVERAGE FARE COMPARATORS
• How do the
average fares in
our market stack
up against others
in the region, and
others in the
airlines’ network?
asm-global.com
MODULE 10 INCENTIVES AND TRAFFIC DELIVERY
Address how route will be supported to ensure traffic and if necessary to move
opportunity up the ranking of choices for the airline
Marketing plans
Stakeholder support
Outbound/Inbound/Connectivity traffic driving plans
Yield improvement plans, through high value passenger customer engagement
Corporate sales brokering
Route incentive programmes
asm-global.com
MODULE 10 “PERFECT PRESENTATIONS”
Listening
asm-global.com
MODULE 10 Q & A/ SALES DISCUSSION WITH AIRLINES
Example questions:
- How does the opportunity sounds to you?
- What would it need to look like to be seriously considered?
- What needs to be done next to move the opportunity forward?
Establish objections (reasons why they wouldn’t operate the route)
- E.g. low yield. Counter through examples, comparison stories, or agree to revert back post
meeting.
Establish obstacles (reasons why they can’t operate the route)
- E.g. bi-lateral restriction. Agree action plan to address and revert back post-meeting. Agree
position with airline assuming obstacles are removed in the future.
- Ask for agreement of next steps. How can this opportunity be moved forward?
asm-global.com
MODULE 10 “PERFECT PRESENTATIONS”
Conciseness
asm-global.com
MODULE 10 “PERFECT PRESENTATIONS”
Being remembered
asm-global.com
MODULE 10 APPENDIX
Support Information
To answer questions, not to be presented
asm-global.com
MODULE 10 APPENDIX
Airlines take little notice of catchment since most airports overstate it.
Include ONLY if needed to illustrate that current traffic is understated due to leakage, as airlines use
traffic data to assess market size, not catchment.
If being shown, needs to be realistic and consist of population for whom our airport is the most
accessible for travel to their destination.
Catchment areas can vary by destination depending on the routes served by competing airports in the
region. Show catchment area as it relates to the airline/route being targeted.
Compare to catchment areas of competing airports
Catchment Size
asm-global.com
MODULE 10 APPENDIX
Catchment Characteristics
Key information about the strength of the catchment, for example:
• GDP Growth/Economic Performance/Investment information
• Hotel stock/development information
• Diaspora information
• Corporate information if relevant: e.g. Fortune 500 companies in the area with travel requirements
relevant to the airline
asm-global.com
MODULE 10 APPENDIX
Current Air Service Network
Background Information Only
Include ONLY if airport is not known to the airline.
Provides airline with some perspective about the destination's potential
Identifies for the airline if there is existing service to markets that are comparable to their home market.
Identifies for the airline a potential connecting network that they could access.
asm-global.com
MODULE 10 APPENDIX
Point of Origin and Purpose of Trip Info
Our Market
XX%
Airline’s Home
Market XX%
Tourism
XX %
VFR
XX %
8%
Business
XX %
Point of
Origin
Purpose of
Trip
Useful to an airline to know if this airport is primarily
a destination vs. origin market.
Provides insight into yield potential, and level of tour
operator involvement required.
asm-global.com
MODULE 10 APPENDIX
Fees and charges
Key is comparison with alternate choices for airline
Compare airport fees and charges with competitors for proposed aircraft