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Vitality eats into agents’ business

13 Jul 2016 - by Natasha Schmidt
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BA COMAIR’S bookings

through travel agents

have fallen by around

30% over the past five years,

as a big chunk of these

customers are now booking

through Discovery’s loyalty

programme, Vitality.

This was the word from

Wendy Clausen, Comair’s

senior manager of Selling

Channels and Distribution,

who was speaking at the

Aviation Festival and Airports

Show, held in Sandton from

June 28-29.

Wendy addressed delegates

on the issue of distribution

and how airlines could boost

their competitive advantage

by finding a good mix of

channels coupled with the

right strategy.

“BA Comair and kulula have

come a long way in terms of

developing and optimising

their distribution strategies.

The airlines have learnt from

the retail sector, tailoring

their e-commerce offerings to

customers and finding new

revenue opportunities from

different channels,” she said.

Five years ago, the GDSs

made up about 70% of

BA Comair’s distribution.

This had fallen to 40%, as

more customers were now

booking online, particularly

through Vitality, which had

eaten into a big chunk of

this distribution channel,

Wendy said. The GDS

channel makes up 25% of

kulula.com’s bookings, while

partnerships also make

up 25%. The LCC’s direct

website accounts for

30% of bookings.

However, the trade still

plays a pivotal role as the

highest yielding distribution

channel for both airlines,

as the majority of corporate

business comes via this

channel. “This is the

segment purchasing flexible

fares. We’ve also seen an

increase in government

bookings of late,” she said.

BA Comair’s inbound

international booking

channels also make up

a substantial portion of

its distribution, with 26%.

“Only 5% of kulula.com’s

traffic comes from this

channel but it holds big

potential and is growing

as the airline continues to

establish alliances with other

international carriers,” said

Wendy.

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