When choosing an airline ticket, Russian travelers are increasingly considering factors other than price. The challenge for agencies is to quickly navigate the growing variety of airline products and offer clients the best deal. this is exactly the option for him.
In 2017, the Russian tourism market showed positive growth for the first time in several years. Having adapted to new economic conditions and enjoying relatively stable exchange rates, Russians began to travel more actively both domestically and internationally. With the development of low-cost airlines and the introduction of baggage-free and non-refundable fares, airfares fell, further fueling passenger interest. However, demand shifted, and travelers began to consider factors other than price.
Over the past few years, many air carriers have introduced their own branded product lines and expanded their offerings of ancillary services. The airlines' strategy is clear: with competition intensifying and margins declining, they are seeking to increase their share of non-aviation revenue, driven by growing demand for services that enhance the travel experience and personalize the travel experience. According to Car Trawler, global airline revenue from ancillary services will reach $14.8 billion in 2017, an increase of $26.4 billion since 2010.
The challenge for agencies is to quickly navigate this ever-growing variety of carrier products and offer travelers the most suitable option. Moreover, each person's understanding of the "best fare" is unique and can be dictated by their personal preferences, needs, and type of trip. For example, according to momondo statistics, 181,333 tourists worldwide and 141,333 in Russia consider baggage allowance included in the ticket price an important factor when choosing a flight.
Price remains one of the main criteria when purchasing airline tickets. According to research firm OAG, 371,333 travelers are willing to fly with a layover of more than four hours to save 1,400,000 rubles, while among millennials, this share is 551,333. However, momondo's research showed that price is the deciding factor when purchasing air travel for only half of Russians (511,333). This means that in addition to price, people are beginning to consider other factors, such as baggage allowance, fare flexibility, and flight duration.
In these conditions, when creating a proposal for a client, agencies are forced to rely not just on a couple of criteria, such as price or direct flights, but on a whole host of factors that determine the "best rate" for each traveler. To achieve this, they need a powerful and fast tool for high-quality searches. The question arises: how to navigate the wide variety of technologies available today, and what criteria should be used to select one solution over another?
International players regularly analyze their travel search and booking capabilities. For example, the global technology company Sabre evaluates the effectiveness of its global distribution system (GDS) year after year. An independent study conducted in 2017 in 18 countries by leading marketing and consulting firm Dr. Fried & Partner found that Sabre currently outperforms competitors in every region of the world, consistently offering low fares with a wide selection of attractive options and airline services. In Russia, according to this study, Sabre provides the lowest fare offer 19% more often than Travelport and 10% more often than Amadeus. Furthermore, 84% of content found through Sabre when searching from Russia contains a branded fare or ancillary services. For Amadeus and Travelport, this figure is 74% and 69%, respectively. The top 5 additional services available with Sabre when booking flights from Russia include checked baggage, meals, seat selection, oversized baggage, and unaccompanied minors.
Dr. Fried & Partner's research also confirmed that, while price remains a key factor, demand for higher quality service is growing, with people willing to pay nearly $251,000 more for additional options and convenience. This suggests that with a smart approach to clients, agencies have excellent opportunities to increase average ticket and profitability, including through the implementation of a unified technology solution with powerful analytics. Sabre, for example, plans to launch a new agency platform, New Sabre Red Workspace, this year, which will include functionality to prompt agents about which fare and product, matched to traveler criteria, are more profitable for the agent in terms of revenue.
"The Russian travel market has come a long way, experiencing many ups and downs, but this hasn't made the industry any less attractive. On the contrary, competition is only growing," noted Anastasia Lavrenyuk, head of Sabre's Russian representative office. "At the same time, consumer demands are becoming increasingly complex, which is why we always keep our finger on the pulse, constantly improving our technologies, providing agents with fast, powerful, and reliable tools for success in the new market reality. Sabre's goal is to help airlines and agencies increase conversion and customer loyalty through effective distribution and offering the best fares that travelers will immediately say 'yes!'"
Source: trn-news.ru