RECITE A PRAYER.. 30s

Course ContentsContent 8 chapter:

Chapter 1:FUNDAMENTAL OF AM.Chapter 2:MARKET FOR AIR TRANSPORT SERVICE.Chapter 3:MARKETING ENVIRONMENT& AIRLINE BUSINESSChapter 4:PRICING AND REVENUE MANAGEMENT--------------------------------Mid-term------------------------------------------Chapter 5:DISTRIBUTING OF THE PRODUCT AND BRANDINGChapter 6:RELATIONSHIP MARKETINGChapter 7:AIRLINES SELLING,ADVERTISING&PROMOTEChapter 8:THE FUTURE OF AM----------------------------------Final exam--------------------------------------

CHAPTER 2:THE MARKET FOR AIR TRANSPORT SERVICES

Learning outcome:Know and understanding about the airline business service.


What Business Are We In?

TRANSPORTATIONCOMMUNICATION

LEISURELOGISTIC

INFORMATIONSELLING SERVICES

Do you think that transportation is important for social needs and why?

What kind of transportation we have now?

THE MARKET FOR AIR TRANSPORT SERVICES


a) Transportation

- Can aircraft gain a profit in transportation?

- Ex: commercial a/c, private a/c , leas a/c..etc

- Short haul(domestic)- Long haul(international)

- Door 2 door service- Special service demand from

customer- ..etc

Page:6




LEISURELOGISTIC


Example of communication we have now?Telephone,Internet,Video conferenceetc



b) CommunicationAirline assisted people to:

- face to face meeting- urgent business deal

- day trip- Advantage for the airline???

Ex: easy to gain a new customer- Disadvantage for the airline???

- No one will travel because customer easy to communicate by using video

conference.

Page:7




LEISURELOGISTIC




c) Leisure & holiday-customers disposable income

- disposable time- leisure holidays

- Leisure activities- Advantage to the airline?

Ex: gain more profit and sale- Disadvantage to the airline?

- No customer if political issues involve such as price of

ticket, natural disaster and BERSIH etc..




LEISURELOGISTIC




d) Logistics

- Air freight, forward company.- Fast transportation of goods compare to the surface transport. - meeting dateline any ideas.-Advantage?-Airline will be well known in the eyes of the worlds-disadvantage?-Competitive with surface transport(car,motor)Page:7




LEISURELOGISTIC




e) Information - moving urgent

documents/newspaper(1980) -Challenge to the airline???E.g: by electronic transmission-fax , email, satellitePage:8




LEISURELOGISTIC


THE MARKET FOR AIR TRANSPORT SERVICES f) Selling services

-airline require many skills to be developed.-e.g.: associated with a/c engineering, airport ground handling and etc to gain more profit

Airport ManagementGround Handling



f) Selling services

Catering In-flight Entertainment



f) Selling services

Engineering Piloting



f) Selling services

Cabin servicesReservation/ticketing



f) Selling services Duty Free Shops Dubai airport

Page:8

Chapter 2:The Market of Air Transport Services

Who Are The Consumer and Customers?

What is the Market Segmentation?

Who Are The Consumer and Customers???

THE AIRLINE CUSTOMERS

The Consumers --- “ARE THOSE PEOPLE WHO ACTUALLY TRAVEL”

The Customers --- “They Are The Decision Makers”

Page:9

CHAPTER 2: 4 CUSTOMER DECISION WHICH AIRLINE MUST BE ANALYSED

Will a trip be made at all?

• Cost of travel is a major item of corporate expense• Firm try reduce expenditure to increase profit

What mode of transport will be selected?

• Railway, bus? Suitable for short haul?• Airplane? suitable for long haul only?

For air trips, what class of service will be purchased?

• First class-customer prefer 1st for long haul?• Business class-major type for all passenger.

Which airline will be selected?

• MAS?• Air Asia?...why choose them?• Firefly?Page:9&

10

CHAPTER 2:UNDERSTAND THE AIRLINE MARKET

The general customer need

Industrial buying behavior

The customers in the “business air travel market”

Leisure & Holiday Travel Market

CHAPTER 2: The General Customers Needs Flight frequency; to allow travel flexibility

Roomy cabin: to permit working during flight

Personal benefits; incentives, frequent flyer program

Pride & ego: special reservation, check in (red carpet), cabin, etc

Lazy to change: stick to existing supplier

UNDERSTANDING THE AIRLINE MARKET

1. The General Customers Needs


http://i116.photobucket.com/albums/o10/9MMAR/Kuala%20Lumpur%2016%20February%202007/DSC00883.jpg

http://i116.photobucket.com/albums/o10/9MMAR/Kuala%20Lumpur%2016%20February%202007/DSC00882.jpg


The general customer need

Industrial buying behavior



CHAPTER 2:UNDERSTAND AIRLINE MARKETING

Industrial Buying Behavior – DMU(decision Making Unit)

Decider Gatekeeper User Buyer Influencer

Industrial Buying Behavior – DMU (decision Making Unit)

a) Decider - he makes the final decision: owner, CEO, Senior Manager,

b) Gatekeeper – those people who control the flow of information into decision-unit. e.g.: PA protect their Boss from times wasting visit, unwelcome sales people.

c) User – those people who use the product or service, concern about quality , cost

d) Buyer – negotiate to get the best deal, expect reward from savings

e) Influencer – those people who don’t use a product, but who influence the final outcome-e. g: government, civil,

Page:12-14


The general customer needIndustrial buying behavior



The Customers in the “Business Air Travel Market”

a) Secretaries who makes bookings for their bosses – understand the bosses requirements,

b) Travel agents – 80% of bookings,c) Corporate Travel Manager – special taskd) Customers – who provide feedback

CHAPTER 2:UNDERSTAND THE AIRLINE MARKETING

Page:15-17

CHAPTER 2:UNDERSTAND THE AIRLINE MARKETING


A) Their Concerned ~Is there other/better mode of travel ~Service and quality Challenges from surface & ground transportB) Children – facilities for children & babies ~women – well plan programC) Travel agent

~ provide package, visa etcD) Tour operators

~ organizes travel in groupsE) Consolidators

~bucket shops, block seats to sell on discount

Page:18-20

What are the different between LCC compare with the other commercial Airlines??

Homework!!1. What is the Low cost carrier?2. What is characteristic?3. What LCC do and DO not do?4. In your words, what the effect of LCC to our

economy?5. What is the schedule flight and non-schedule

flight?6. What is the chartered flight?

Due date:21/07/2011

Or in other words:

~~A market segment is a subgroup of

people or organizations

sharing one or more

characteristics that cause them to

have similar product needs~~

CHAPTER 2:MARKET SEGMENTATION

A market segment is a group of Customers who have sufficient in common that they form a viable basis for a product/price/promotion combination.


The Air Passenger MarketAir Freight Market

Page:22-47

The Air Passenger Market

a) Journey Purpose -

b)Length of Journey- c) Country/Culture of Origin of Traveler-


Page:22

MARKET SEGMENTATION

1. The Air Passenger Market

a) Journey Purpose

- Pilgrim visits: Mecca for hajj for Muslim , - Vatican city (Rome)Christian - other country for specified religions - etc….

MARKET SEGMENTATION

1. The Air Passenger Market - cont

a) Journey Purpose-cont

- Leisure holiday: (Bali , Australia)high disposable income to cover

accommodation and meals(hotel,transport)- Leisure travel visiting relatives:(niece , family)

lower disposable income..(VFR)-(FOC)- - etc…

MARKET SEGMENTATION

1. The Air Passenger Market

b) Length of Journey

* flight length is defined as the time airborne during a flight.

1) Criteria of Short-haul-route: • 1 hour up to 3 or 4 hour• frequency and timing • Punctuality, not delay• Seat Accessibility/Ticket Flexibility-easy to

fly• In-Flight Service seats comfort/food are less

significant

*Regional - anything less than an hour.Short Haul - 1 hour up to 3 or 4 hours.Medium Haul - 4 up to 6 or 7 hours.Long Haul - 7 to about 14 or 15 hours.Ultra Long Haul - anything over 15 hours non stop.

MARKET SEGMENTATION

1. The Air Passenger Market - cont

b) Length of Journey

2) Criteria of Long-haul-route: • 7 to about 14 or 15 hours.• service are important (sleep , a place to do a work)• seating comfort, food must be good for customer satisfaction

Question for you ..: DA)How is long haul and short haul defined? By flying time or mileage?

B)What is the AVAILABLE SEAT KILOMETERS?(ASK)

C)What is the REVENUE PASSENGER KILOMETERS?(RPK)?

D) When an airline to start calculate the revenue in year?

MARKET SEGMENTATION

1. The Air Passenger Market -

c) Country/Culture of Origin of Traveler

1)Airline should offer a free baggage allowance for customer require . Y?[different races have different height/weight body]

2)seating comfort/arrangement, European vs. Eastern traveler(big/small),toilet(western/eastern)

. The Air Passenger Market -

Country/Culture of Origin of Traveler

1. The Air Passenger Market -

Country/Culture of Origin of Traveler

3)food for Muslim and non-Muslim - vegetarian/different suitable breakfast between country.(Nasi lemak VS Spaghetti),(Durian VS Apple)


The Air Passenger MarketAir Freight Market

MARKET SEGMENTATION

Why we are using air freight?a) Emergency traffic: e.g: - fast delivery of goods, door-to-door a.s.a.p, cost is

secondary consideration. 1)- operating emergency occurs when a firm has to rectify an

operational problem.Example: Emergency parts for oil company or ship spare parts ,natural disaster.2)- marketing emergency; Such a situation occurs when a supplier is in danger of missing a deadline or one of its customers has expressed dissatisfaction with service levels.Example : deliver in short time,(pos laju-dijamin sampai esok)

*Carriage paid for goods transported in aircraft. Example: UPS,DHL,TNT ,Fedex

Air freight market??

Air Freight Market

b)Perishability goods: -good with short life span-

(expired)Example : cut flower , soft

fruit, vegetables

Air Freight Market

b) Perishability goods have 2 type:1) Physical Perishability:(describes situations where goods

physically deteriorate)Example : Cut flower and soft fruit.

Air Freight Market

b) Perishability goods have 2 type:

2) Economic Perishability: ( occurs not when goods are prone to

deteriorate physically , but when the life cycle within which they remain saleable is a short one)

Example:

Air Freight Marketc) By Type of Services: 1) Just in time: (JIT)(An inventory strategy companies employ to increase

efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.)

Example : Customer demand the item by 2 day , firm already prepared it before due date.

2) Turnaround time:(TAT)(Period for completing a process cycle commonly expressed

as an average of previous such periods . Example: such as repair or replacement of a component or

equipment),

Summary chapter 2:~~The market for air transport

services.~~

~~Consumer and customer definition~~

~~ Understand the airline market~~

~~ Market segmentation~~

Assignment

EXERCISE!!!!(only point form)1. Please explain the 2 market of air transport services

and give your own example.2. Please state 3 ways how can you improve the market

of air transport service?3. An airline has implemented the type of service which

1st, economic and buss class. As the customer, which one you prefer and explain why.

4. Please explain the definition of Consumer and Customer.

5. As a customer, what are your general needs which an airline need to pay attention?

6. As the airline industry operator, you must know the air passenger Market. Please explain 3 kind of the air passenger market.

Submit :28/7/2011

ASKAvailable Seat Kilometers (ASK) measures an

airline's passenger carrying capacity. It is: seats available ×distance flown This

number should be calculated per plane, but is (at least in an investment context) usually quoted per airline.

A seat-kilometers is available when a seat that is available for carrying a passenger is flown one kilometers. Seats that are not usable for various reasons are excluded.

RPKRevenue passenger kilometer (RPK) is a

measure of the volume of passengers carried by an airline

RPK is a measure of sales volume of passenger traffic.

calculated by multiplying the number of revenue-paying passengers aboard the vehicle by the distance traveled

RECITE A PRAYER.. 30s

Documents

Transcript of RECITE A PRAYER.. 30s