Bachelor Thesis - AACC thesis ferdinand geisselhofer... · Bachelor Thesis International University of Applied Sciences Bad Honnef Bonn ... Scheduled Final Destination Traffic on

Bachelor Thesis

International University of Applied Sciences Bad Honnef Bonn

Aviation Management

Qatar Airways in Vienna:

The Necessity of an Integrated Marketing Approach for Convention Travellers at a City

of Political Importance for Airlines and the Arab World

Ferdinand Geisselhofer

Student ID: 9087687

Trauneggsiedlung 30

4609 Thalheim bei Wels / AUT

Supervisor: Professor Dr. Vogel

Date of Submission: January 5, 2012

Qatar Airways in Vienna ii

Dedication

This thesis is dedicated to my family and friends at Qatar Airways.

Qatar Airways in Vienna iii

Acknowledgement

Herewith I would like to thank the supervisor of this thesis, Professor Vogel for his

consistent support and guidance during, but especially before the writing phase of this paper.

Moreover, I am grateful for the courtesy of all colleagues at the Qatar Airways town

office in London, hereby especially to Ms. Moore and Ms Kavanagh for the collaboration

during the internship and their valued assistance to make this thesis possible.

I am much obliged as well to Mr.Cusmano (Former Commercial Manager Austria &

Offline Eastern Europe at Qatar Airways), to Mr. Edlinger at the Society for Austro-Arab

Relations (Secretary General), and to Mr. DI Khouja at the Austro-Arab Chamber of

Commerce (Secretary General) for their insights and time to conduct the respective interviews.

Thank you all for your endeavour!

Qatar Airways in Vienna iv

Abstract

For around 40 years the Republic of Austria has hold positive relationships to the

Arab World and earned the predicate of being an adquate place for conflict mediation. This

factum attracted many International Organizations to open branches in Vienna. Qatar Airways,

the national carrier of Qatar, is serving Vienna since 2004 to offer transfer connections via its

hub in Doha. At the example of Vienna, the market segment of convention travellers of

International Organizations is categorized and explained. Beside some descriptions of the

current market situation at Vienna Airport, this thesis primarily aims to point out the necessity

of an integrated marketing apporach to address the particular market segment of convention

travellers from an airline’s point of view. The author provides an understanding of several

ways to organize strategic business approaches for airline. Through a deductive, qualitative

approach to the topic, by the interpretation of several studies of consultancy companies and by

the usage of case-related literature, a solid base of information is created. The data gathering

process is supported by in-depth interviews with experts from Qatar Airways, societies and

chambers. Out of historical connections, the thesis applies and raises common methods in

relationship marketing and in destination marketing. A broad understanding of the parties

involved, and their individual marketing strategies is given. At last, the author discusses

practices needed for an integrated communication process, such as brand building or

networking. This is done to positively influence corporate traffic on the Vienna-Doha route,

which is the ultimate objective of this paper.

International Organizations Qatar Airways Convention Travel

Travel Policy Relationship Marketing Destination Marketing

Integrated Marketing Communication

Qatar Airways in Vienna v

Table of Contents

Acknowledgement iii

Abstract iv

Table of Contents v

List of Figures viii

List of Tables ix

List of Abbreviations x

List of Appendices xii

1. Introduction 1

2. Literature Review 2

3. Research Methods 4

3.1. Research Approach 4

3.2. Research Strategy 4

3.3. Research Methods 5

4. Austria’s Relationship with the Arab World 6

4.1. Austria’s Prepetual Neutrality and Pro-Active Politics with the Middle East 6

4.2. Political Relationships between Austria and the Middle East Nowadays 7

4.3. Qatar’s role in today’s globalized world 8

4.3.1. Commonalities between Austria and Qatar 8

5. Convention Travellers in Vienna 9

5.1. Size of Convention Travellers as a Dedicated Market Segment 10

5.2. The Potential of International Organizations for the Austrian Economy 11

Qatar Airways in Vienna vi

5.2.1. Private Spendings 11

5.2.2. Corporate Expenditures 12

6. Vienna International Airport 13

6.1. Facts and Figures 13

6.2. Airport Marketing at Vienna International 16

7. Qatar Airways 18

7.1. Qatar Airways Status-Quo 19

7.2. Qatar Airways’ Business Model 19

7.3. Air Service Agreement between Qatar and Austria 21

7.4. Passenger Flows 22

7.4.1. Passenger Figures Vienna-Doha (Total Route Passengers) 23

7.4.2. Passenger Figures Vienna-Doha (Final Destination) 24

7.4.3. Passenger Figures Doha-Vienna 24

8. Challenges: Airlines in the Corporate Travel Market 25

8.1. Customers versus Consumers 26

8.2. Decision-Making Units 27

8.2.1. United Nations Travel Policy 27

8.2.2. Application of the Decision Making Unit to International Organizations 28

8.3. Characteristics of Convention Travellers 29

8.3.1. Travel Pattern 29

8.3.2. Corporate Travel Survey 30

8.4. Key Account Management 31

9. Combination Relationship Marketing & Destination Marketing 32

9.1. Relationship Marketing 32

9.1.1. The Inevitability of Relationship Management 33

Qatar Airways in Vienna vii

9.2. Relationship Marketing Tools Applicable for Qatar Airways 34

9.2.1. Total Product Concept 34

9.2.2. Customer Typology 34

9.2.3. Customer Management Tools 35

9.2.4. Service Operations Management 35

9.2.5. “Flight Product Experience Diagram” 36

9.2.6. Customer Lifetime Cycle 36

9.3. Destination Marketing 37

9.3.1. Destination Marketing at the City of Vienna 37

9.3.2. Destination Marketing at Airlines 38

9.3.2.1. Qatar Airways as a Global Corporate Brand 38

9.3.2.2. Price Setting According to Yield 39

10. Recommendations 41

10.1. Integrated Marketing Communication Process 41

10.1.1. The Eight-Steps Communication Process 41

10.1.2. Corporate Branding 42

10.1.3. “Marketing Communciation Process” 43

10.2. Practical Solutions 44

10.2.1. Package Selling 44

10.2.2. Austro-Arab Chamber of Commerce 44

11. Conclusion 45

References 47

Appendices 57

Declaration of Authenticity 100

Qatar Airways in Vienna viii

List of Figures

Figure 1: Worldwide Passenger Traffic per Continent 1

Figure 2: Comparison of National and International Participants per Organization 11

Figure 3: Scheduled Traffic at Austrian Airports in 2009 13

Figure 4: Market Share per Carrier at Vienna Airport 14

Figure 5: Scheduled Traffic to the Middle East at Vienna Airport 15

Figure 6: Catchment Area, Vienna Airport 18

Figure 7: Traditional Airline Model 20

Figure 8: QR's Passenger Number on DOH-VIE 24

Figure 9: Worldwide Traffic per Travel Purpose 30

Qatar Airways in Vienna ix

List of Tables

Table 1: Airline Frequencies per Destination 16

Table 2: Time Schedule, Qatar Airways Vienna Operations 22

Table 3: Annual Average Seat Load Factor VIE-DOH 23

Table 4: QR's Market Share on VIE-DOH, Final Destination 24

Table 5: Annual Average Seat Load Factor DOH-VIE 25

Table 6: Different Sectors in Business Travel and Tourism 26

Table 7: Number of Meetings at the VIC 29

Table 8: QR 'Corporate Identity Policy' 42

Qatar Airways in Vienna x

List of Abbreviations

3W Freedom Airways

AACC Austro-Arab Chamber of Commerce

AMM Amman International Airport

ASK Available Seat Kilometers

B2B Business -to-Business

B2C Business - to- Customer

BCG Boston Consulting Group

BGB Austrian National Law “Bundesgesetzblatt”

BGW Bagdad International Airport

CEE Central and Eastern Europe

CEO Chief Executive Officer

CTBTO

PrepCom

Preparatory Commission for the Comprehensive Nuclear-Test-Ban-

Treaty Organization

DAM Damascus International Airport

DOH Doha International Airport

DXB Dubai International Airport

e.g. Example Given

EBL Erbil International Airport

EK Emirates Airlines

EUR Euros (currency, European Monetary Union)

FFP Frequent Flyer Program

IAEA International Atomic Energy Agency

ICCA International Congress and Convention Association

IO International Organizations

IR Iran Air

LCC Low Cost Carrier

LY El Al Israel Airlines

Qatar Airways in Vienna xi

M. English Abbreviation for Million (GER: mio.)

NGO Non-Governmental Organization

O&D Origin & Destination

OFID OPEC Fund for International Development

OPEC Organization of Petroleum Exporting Countries

OS Austrian Airlines

OSCE Organization for Security and Co-operation in Europe

Plc. Public Limited Company

POS Point of Sale

PWC Price Waterhouse Coopers

QR Qatar Airways

RJ Royal Jordanian Airlines

ROCI Return on Customer Investment

SAAR Society for Austro-Arab Relations

SLF Seat Load Factor

SPOE Sozialdemokratische Partei Österreichs

TEH Tehran International Airport

TLV Tel Aviv International Airport

UN United Nations

UNCITRAL United Nations Commission for International Trade Law

UNHCR United Nations High Commissioner for Refugees

UNIDO United Nations Industrial Development Organization

UNODC United Nations Office on Drugs and Crime

UNOOSA United Nations Office for Outer Space Affaires

UNOV United Nations Office in Vienna

UNWTO United Nations World Tourism Organization

USP Unique Selling Proposition

VFR Visiting Friends and Relatives

VIC Vienna International Centre

VIE Vienna International Airport

VIP “Very Important Person”

Qatar Airways in Vienna xii

List of Appendices

Appendix A: Interview, Mr. Cusmano 57

Appendix B: Interview, Mr. Edlinger 66

Appendix C: Interview Mr. Khouja 70

Appendix D: Total number of convention days and total number of participants (2008) 74

Appendix E: Employee Categories at International Organizations 75

Appendix F: Participants’ Annual Contribution to Austria’s GDP 76

Appendix G: Expenditures of Employees at IAEA (in M. €) 77

Appendix H: Number of Staff (2008) & Disposable Salary (€) 78

Appendix I: Air Transport Value Chain 79

Appendix K: Inbound and Outbound Wave Pattern, Qatar Airways, Doha 80

Appendix L: Official Statement on new Air Service Agreement 82

Appendix M: Scheduled Total Route Traffic on Qatar Airways (Vienna-Doha) 83

Appendix: N: Scheduled Final Destination Traffic on Qatar Airways (Vienna-Doha) 83

Appendix O: Scheduled Final Destination Traffic on All airlines (Vienna-Doha) 84

Appendix P: Inbound/Outbound Traffic on Qatar Airways, Vienna-Doha 84

Appendix Q: Delegates Attending a Professional Association Conference 85

Appendix R: United Nations Quarterly Travel Report 86

Appendix S: United Nations Form for Exception at Air Travel Occasions 87

Qatar Airways in Vienna xiii

Appendix T: Ascend Corporate Travel Survey 88

Appendix U: Total Product Concept 89

Appendix V: Customer Typology 90

Appendix W: Customer Management Tools 91

Appendix X: Transactional versus Strategic Business Relationships 92

Appendix Y: “Flight Product Experience Diagram” 93

Appendix Z: Customer Lifetime Cycle 94

Appendix A 1: Planning Strategy to Market Destinations 95

Appendix B 1: Passenger Growth Figures in the Middle East 96

Appendix C 1: Profitability of Middle Eastern / European Destinations 96

Appendix D 1 Integrated Marketing Communication Process 97

Appendix E 1: “Marketing Communication Process” 98

Appendix F 1: The Four Key Elements of the Organization 99

Qatar Airways in Vienna 1

1. Introduction

The aviation industry undoubtly belongs to one of the most vibrant businesses

worldwide. The growing worldwide population, the increase in globalization and the mass-

marketing of tourism to make travelling in general affordable has lead to the public’s settled

approach of taking product of flying for granted, at least in the western civilized world.

Because of the aviation industry’s positive internationality the base for all those developments

is seen to be underlying political stability, liberalization, and huge investments in

infrastructure over decades to cope with the increase in people travellingof various purposes in

different classes.To follow this logic, Europe comes up with the largest share in international

traffic, followed by the Asia-Pacific Area and North America, as shown in table 1.

Since the beginning of the 1970s, the city of Vienna, Austria represented a safe

neutral spot for bilateral conventions of International Organizations and many referred smaller

organizations. This resulted in the country’s positive border-crossing image. Today, Austria

and therefore especially Vienna, belongs to the most popular places when it comes to

headquarters of International Organizations. Beside of New York, Geneva and Nairobi,

Vienna hosts the headquarters of OSCE, OPEC or the OFID (“Ernst&Young”, 2009, p.5).

Including other larger organizations being based in the Vienna International Centre (VIC) like

the IAEA, UNIDO, UNODC, CTBTO and the UNOV in total around 30 organizations create

an enormous positive effect on Austria’s macroeconomic situation due to corporate and

private investments by the organizations themselves but as well by the private consumption of

Figure 1: Worldwide Passenger Traffic per Continent

Source: Teyssier, 2010, p. 6


the respective employees. In total the VIC gives work to over 5,500 employees coming from

more than 110 countries, holding around 2,000 conferenes per year (“UNIS”, 2011).

According to the latest ICCA statistics report with 159 meetings in 2009 and 154 meetings in

2010 Vienna still is the city holiding the most international associations meetings, coming

before Barcelona and Paris (ICCA-Report, 2011, p. 20).

In the course of this paper, particularly in chapter four, Austria’s way of politics with

the Arab World, implemented by the former minister of foreign affaires Bruno Kreisky

(SPOE) during the 1970s, is highlighted in a retrospective way to familiarize the reader with

the overall context of this paper. In chapter 5, the author analyses the economical effects of the

International Organizations based in Vienna on the city’s attractiveness for airlines and the

aviation business. Following in chapter 6, attendents and visitors to the conventions of

International Organizations being held in Vienna are analysed in terms of their characteristics

and typology.This is done in order to identify this, from an aviation marketing point of view,

sparsely adressedmarket segement.

Chapter six and seven describe the airline itself, its operations in Vienna on an O&D

level together with the current situation at Vienna Aiport in terms of passenger flows. In

parallel the descriptive part ends at this point. The following chapters are of investigative

nature. As a consequence in chapter 8 the attractiveness and as well the avionic challenges

airlines have to face on the corporate market. Chapters nine and ten finally include

recommendations and diverse marketing tools how airlines, in particular Qatar Airways, can

take benefit from this unique target group right. In chapter 11, the thesis ends by a

comprehensive conclusion. As the author leads the reader through seven mutually exclusive

chapters of the thesis’s body, the inimitable chance to serve this market segment through an

individual integrated marketing approach should become evident and emphasized.

2. Literature Review

The author divided the research paper in eleven main chapters whereas chapters four

to ten do represent the body of this academic paper. Within the body each chapter is described

and analyzed individually in order to form a coherent conclusion providing the reader with a

comprehensive and broad understanding. Due to this fact, various data in form of secondary

data as well as primary data in form of expert interviews were used in regard to the chapters

concerned.


The following seven chapters (chapter 4 to chapter 10) include in particular various

literature describing past and current political situations between Austria and the Arab

countries (Kreiskys Außenpolitik, Kreiskys Nahostpolitik, Die Golfstaaten – Wohin geht das

neueArabien, Internationale Organisationen in Wien), books outlining the principles behind

Destination Marketing (Destination Marketing, Business Travel and Tourism, Airline

Marketing and Management, Management von Destinationen), and as well books explaining

what Relationship Marketing is all about (Communicating Globally, Airlines: Managing to

Make Money, Handbuch Kundenbindungsmanagement, Service Operations Management,

Services Marketing), books on the corporate market segment (Business Travel, Flying Off

Course) and at last, books about Airport Marketing (Managing Airports, Introduction to Air

Transport Economics, Luftverkehrsmanagement). In addition the author used magazines

(Airliners, Business Traveller),expert testimonies on behalf of the Austrian Department of

Foreign Affaires (PriceWaterhouseCoopers, Ernst&Young, Report on Europe’s Exterior

Politics), one law gazette (bilateral air service agreement, BGB 315/1991, BGB 710/1994),

secondary data collected by the Federal Statistical Office of Austria (official statistics on civil

aviation and the correponding database) and the United Nations Documentary Service as well

information on Qatar Airways itself when it comes to service attributes, status-quo reports and

service commitment. Internet websites on international organizations and official institutions

(United Nations Information Service Vienna, City of Vienna, Vienna International Airport,

Ministry of Exterior Affaires Austria, Federal Chencellary) have been accessed as well. The

secondary data mentioned above will be cited throughout the entire thesis and is listed in an

alphabecial order under the references section.

The author collected primary data by conducting threeexpert interviews (Mr. Fritz

Edlinger: Secretary General, Society for Austro-Arab Relations, Mr. Joseph Cusmano: Former

Commercial Manager Austria & Offline Eastern Europe, Qatar Airways, Mr. DI Mouddar

Khouja: Secretary General, Austro-Arab Chamber of Commerce). All interviews including the

questions and answers have been taped and typewritten attached under the appendix section.

At the end of this section it needs to be mentioned that all data raised above is being

analysed to links to the Austrian aviation market, to Qatar Airways’ activities in Vienna and

finally to the former and the current Austria’s diplomatic relationships to Arab countries.


3. Research Methods

3.1. Research Approach

In order to justify historical facts, current situations and the consequent issues one has

to cope with in regard to the convention sector in Vienna the author used a combination of a

deductive and of an inductive approach. The deductive approach is being emphasized by a

hypothesis in the working title stating that, there was a need for a dedicated marketing

approach for convention travellers in Vienna. To start with, “there is the search to explain

causal relationships between variables” (Saunders, Lewis, &Thornhill, 2000, p. 87) in this

case between the number of convention travellers and the possible impact on the aviation

market and its marketing strategy by collecting data and presenting the respective findings.

The deductive approach is as well constituted by the “collection of quantitative data”

(Saunders, Lewis, & Thornhill, 2000, p. 88) by “a highly structured approach” (Saunders,

Lewis, &Thornhill, 2000, p. 91) and the “necessity to select samples of sufficient size in order

to gernalise conclusions”. This is applicable with the interpretations of the studies by

consultancy companies. By doing so, figures mentioned are characterized by validity as well

as by reliabiliy.

The inductive research approach is justified by the completion of three qualitative in-

depth interviews in form of a face-to-face conversation (Saunders, Lewis, &Thornhill, 2000,

p. 244) relevant to areas of interest correponding to the responsibilities and tasks of the

interviewee. This results in “a close understanding of the research context” (Saunders, Lewis

&Thornhill, 2000, p. 91). Conducted in a qualitative way, the rich and detailed answers make

it possible to understand the matters in the interviewees’ viewpoint, unless this factum allows

a flexible arrangments of the questions. The inductive conclusion is the “necessity of an

integrated marketing approach”, a refutation of the research question in the working title.

3.2. Research Strategy

On the one hand the author states the former political activities and the actual

situation on Austria’s aviation and convention market. This refers to the conduction of

desriptive studies. Thus, the collection of qualitative information through books, expert

interviews, internet websites and other official data let “the focus be initially broad and it

becomes progressively narrower as the research progresses” (Saunders, Lewis, & Thornhill,


2000, p. 97). The author leads the reader through a broad description of comprehensive issues

on Austrian exterior politics and the current business travel situation at first, and then ending

up to an integrated marketing approach for airlines, possibly tailor-made for Qatar Airways.

Through such a way of increasing the qualitative specification the author establishes the basis

for a detailed exploratory study in the form of a case study design at the example of the

convention travellers in Vienna. Through the broad overview and the details predicted, overall

objectivity is given to the case study.

3.3. Research Methods

Regarding this diversified structure of the underlying problem statement and the

different parties involved the author’s ambition was to take usage of different ways of sources

in order to provide the reader with a thesis being rich in content. In case of chapter four the

author procured insight to employ the interview made with Mr. Fritz Edlinger, furthermore the

content in this chapter was derived from two books specialising in Austria’s former way of

construing exterior poltitics, respectively on current information from the United Nation’s

internet website.

In the upcoming four chapters the author elabortes reliable secondary data including

scientific literature, magazines, journals, officially collect data, expert surveys and published

information on Vienna’s business tourism strategy belonging to the respective organizations

being involved in the convention business. Moreover the author takes usage of published

Qatar Airways’ product and service descriptions as well as of another expert interview with

Mr. Joseph Cusmanoon the standards Qatar Airways is working with corporate customers in a

relationship perspective. The interview with Mr. Khouja outlines diplomatic and economical

links between Austria and Qatar. Additionally, content from university’s lectures has been

used incooperating slides from the lectures in Aiport Marketing and topics from the lectures in

Airline Marketing and Yield Management. Supplementary, certain content from aviation

courses being held for the employees at Vienna International Airport through the Vienna

Airport Academy have been used.


4. Austria’s Relationship with the Arab World

4.1. Austria’s Prepetual Neutrality and Pro-Active Politics with the Middle East

Herewith the author is refering to the activities conducted by Mr Bruno Kreisky

(SPÖ) as former Austria’s minister of exterior affaires from 1959 to 1966 and as chancellor

from 1970 to 1983 (Brockhaus, 1990, p. 469). Some years before Kreisky’s duty time as

minister, on 26 October 1955 the Republic of Austria ratified a federal act incooperating

Austria’s perpetual neutrality on example of Switzerland’s implementation and interpreation

of neutrality (Röhrlich, 2009, p. 120).

The agreed perpetual neutrality built a solid base for the creation of Austria’s

reputation on a worldwide diplomatic level in future. Mr Kreisky was convinced that an

actively conducted way of neutreal politics should associate positive values to Austria’s

international significance (Röhrlich, 2009, p. 240). “As the Republic of Austria joined the

United Nations as a member state in year of 1955, the organizations’ regulations stipulated

that every member state should participate in the establishment of peace-keeping processes in

regards to the conflict in the Near East, so Austria’s contribution in that was highly valued”

(Thalberg et al, 1983, p. 293).In this context, Mr.Kreisky’s time as minister of exterior affaires

was extensively affected by state visits to Arab countries located in the gulf region and in

Northern Africa. The minister’s idea behind has been to use the state’s neutrality in the way of

establishing Austria, moreover Vienna, as a central point of international understanding.By

organizing state visits and extending invitations to many of the state leaders to come to

Vienna, Kreisky’s diplomatic efforts left deep positive impressions with the leaders in the

Arab World.

In case of Austria, these facts lead to a well-established diplomatic relationship with

many countries in the Orient region (F. Edlinger, personal communication, September 30,

2011). Naturally most of the developments during the times desribed above had positive

affects on the aviation business in Austria. This is justified best by listing Mr. Kreisky initiated

bilateral air service agreements rather early with countries like Iraq on 30/07/1971, Jordan on

19/07/1977, Syria on 19/12/1978, Kuwait on 24/04/1980 and Turkey on 20/12/1974 and Lybia

on 13/05/1984 (Federal Chancellery of Austria , 2011). From the mid-1940s onwards, each

country negotiated a series of bilateral air service agreements, [...] with other states, aimed at

regulating the operation of air transport service between them [referring to the Geneva


Conference of ICAO in 1947] (Doganis, 2002, p.31). It can be anticipated that since then the

national carriers of the states in question have been serving routes from their respective capital

city to Vienna.

Today many countries sign air service agreements together with airlines to faciliate

growth, good connections and potentially profitable passenger flows. In contrast, it seems that

air service agreements those days were set up as a sign of expression of good political

relationships and friendship between two nations.

4.2. Political Relationships between Austria and the Middle East Nowadays

Mr.Edlinger (2011) analysed that Austria’s current relationship with Middle Eastern

countries is very much based on the establishment of economic interests on both sides.In

contrast, headded that Kreisky’sobstrusions to act as abilateral agent had deeply been drilled

by Mr.Kreisky’s personal interest (F. Edlinger, personal communication, September 30, 2011).

Compared to today’s situation Mr.Edlinger stated: “Currently the presentrelationships are

more driven byinitiaties of privatized companies than of diplomatic relations. Unfortunately,

diplomatic relations are nowadays subject to some kind of a cost and benefit calculation, this

holds true as well for the deceleration in expansion of Austria’s embassies or honorary

consulates in the respective countries”, (F. Edlinger, personal communication, September 30,

2011).

Hereby it needs to be mentioned that according to the latest Report of Exterior and

Political Issues in Europe 2010, Austria’s exports to Qatar were calculated to be up to 71.970

Million Euros. On the contrary, imports have risen extraordinary by 103.1% up to 3.043

Million Euros (Federal Ministry of Exterior and Political Affaires, 2011, p. 376).

In January 2011, during a state visit to Vienna by HH the Emir Sheikh Hamad bin Khalifa Al-

Thani and this wife, the Emir said: “We remember with respect the important role played by

the former chancellor Bruno Kreisky and the efforts he exterted to bring about peace in the

Middle East [...] and initially opted to recognise the rights of the Palestinian people [...]

expressing his hope that Austria would continue this role” (“Gulf Times”, 2011).This holds

true Mr.Edlinger’s statement, saying that Kreisky’s ambition was highly driven by his

personal interest. Beside of this visit, the two nations signed a double tax agreement and the

agreement for setting up a new air service agreement (Federal Ministry of Exterior and

Political Affaires, 2011, p. 369).


4.3. Qatar’s role in today’s globalized world

Regarding the latest political activities within the region and its overall global image,

the State of Qatar has become one of the Middle Eastern diplomatic key players. “Economic

power now turns slowely into political power” (Hermann, 2011, p. 300). Meanwhile Doha has

become arecognized neutreal spot for important conventions and summit being of vital

importance for the region1, (Hermann, 2011, p. 301). Rockover (2008) additionally says:

“Most importantly, Qatar serves as a good example how public dimplomatic tools and

instruments can serve to amplify public diplomacy strategies like niche diplomacy and nation

branding; Qatar has managed to gain major public diplomatic capital” (pp. 25-26).

Moreover, Qatar’s ruler family is taking benefit of its location and through conflict

mediation it tries to give its country globally accepted image by shifting its reputation from a

raw material supplier towards a well establishedindependant state being strong in the

education and in the convention tourism sector. This should be the strategy to overcome the

future decrease in revenues of petro-dollars (F. Edlinger, personal communication, September

30, 2011). In a summarizing perspective, through a wise strategy Qatar uses its success in

diplomatic ambitions as a tool to positively influence its national development and therewith

spreads its engagements in various production and service sectors. According to this

development, Qatar will be established as the convention center for issues in the Arab world

(Hermann, 2011, p. 300).

4.3.1. Commonalities between Austria and Qatar

Having discussed the two small countries’ efforts in exterior politics one can clearly

make out distinctive commonalities which are influencing their relationship to each other. For

sure, they build the basis for further negotiations and for further collaboration between one

country’s airline serving two points on both countries’ territory. These developments may help

an airline in a large extent to further justify future investment into the market concerned.

Having International Organizations as a very consensus and relationship concerned business

partner involved can be of relevance to let relationship marketing efforts be successful much

easier. Within a short period in time, both countries became important keyplayers in the

regions, where they are located.

1 E.g. governmental crisis in Libanon in 2008, mediation processes conducted in cases of Yemen and Sudan,

Doha Development Round in 2001 (F. Edlinger, personal communication, September 30, 2011).


Both, Austria and Qatar used their neutral attitude as an intelligent marketing tool to

give their small states a new profile in order to increase its weights on global diplomacy. Now,

during a relatively stable period in time the two states attract the attention for convention

travel of International Organizations and local summits. Successful diplomacy in this regard

incooperates huge potentials for the convention related aviation business between Vienna and

Doha. This awareness is seen as a basis to the integrated marketing approach being discussed

in the following chapters.

5. Convention Travellers in Vienna

While it is hard to categorize participants at IO’s meetings they are better comparable

to “association meetings”. According to ICCA (2011) association meetings are conducted by

“International Governmental Organisation” and “International Non-Governmental

Organication” (p. 7). Nevertheless, from an aviation point of view, they share different

characteristics than meetings of medical or scientific reasons, as described in the following.In

specification to the presence of International Orgnanisation (IO) in Vienna and its possible

potence as an individual market segment for airlines is decribed by Stermann (1974) that “the

question of location at IO is a political rather than an economic one, considerations and

convenience are also playing an important part” (Stermann, 1974, p.XX). Nowadays around

thirty international organizations have their official residence in Austria (UNIS, 2011). In May

1987 the ACV2 has been opened to expand the conference and convention facitlies in Vienna.

The main shareholders are:

Republic of Austria

Ministry of Finance and National Economy of the Kingdom of Saudi Arabia

Kuwait Investment Authority for the Government of Kuwait

Abu Dhabi Government, represented by the Abu Dhabi Fund for Development

(Davidson & Cope, 2003, p.145).

In this regard Mr.Cusmano from Qatar Airways reports, that there is no statistics

available about the IO’s travel intensity in Vienna and if Qatar Airways is chosen as a

2 ACV = Austria Centre Vienna, Austria’s largest convention centre (R. Davidson, B.Cope, 2003, p. 145).


preferred carrier, “unless there is a direct phone call from the secretary” but this isunfrequently

done (J. Cusmano, personal communication, August 16, 2011).

5.1. Size of Convention Travellers as a Dedicated Market Segment

Ernst & Young found out that in 2008 around 3.456 persons have been working for

bilateral institutions like embassies, 5.397 employees have been working for multilateral

organizations like the UNIDO or the OPEC. Among those around 3.312 employees were

honored by a diplomatic status (“Ernst&Young”, 2009, p. 4). The IAEA holds the most

convention days in 2008 (3,372 convention days) and the UN/UNDC came up to 540 days of

conventions in 2008. Regarding the total number of participants the OSCE is absolutely top

ranked with 52,000 persons. The UN/UNIDC hold conferences with around 15,880 persons

attending conferences, the IAEA, lists around 13,655 participants (“Ernst&Young”, 2009, p.

27). A graph to visualize the figures is shown as appendix D. Airlines in this context should be

very much interested in convention days as this is probably indicator for the travel demand of

international attendees and their respective share. After further investigation of the data

provided by the Ernst&Young study the number in international attendees remained relatively

stable in 2006 (40,272), compared to 2008 (40,416). Contrary, around 13,992 national

attendees in 2006 and 57,690 national attendees in 2008 have been counted (“Ernst & Young”,

2009, p. 28). Therefore, figure 2 shows a total market potential of 40,416 of total employees in

2008 at the larget organizations based in Vienna.

Appendix E provides the reader with an indication about the diversification in

hierachy ranks applied at staff employed at “International Organizations” and about their

respective share of total people employed. “Executive Diplomats”, “Diplomatic experts”,

“Office Managers”. In 2008, again at the example of the IAEA, the first two staff categories

come up to share of 2,281 persons employed (98.06 %), in case of the UNOV and the UNIDO

this would be 98.04 % and 97.45 % respectively (“Ernst&Young”, 2009, p. 14).

The graph in appendix E clearly marks as well that the United Nations comes up with

the highest number in all three employee categories. To follow this logic, this organization

should be put in the limelight of all business acquisition procedures. Nevertheless, it is

probably the “office managers” and the “diplomatic experts”, who are the most profitable

passenger segment for an airline, due to the frequent representative functions they have to


fulfill.“Executive Diplomats” most likely are using private business jets for their duty travels

and would probably prefer individualized avionic services.

5.2. The Potential of International Organizations for the Austrian Economy

In this regard, the IO’s contribution of international convention participants in 2008

has come up to 131,90 M. Euros, what makes up roughly 2.25 % of the national participants’

contribution (58,60 M. EUR) (“Ernst & Young”, 2009, p. 30). This fact is illustrated by

appendix F. In 2008, the International Organizations contributed 190.50 M. EUR to Austria’s

Gross Domestic Product. This identifies international participants to be the most profitable

customers. Based on people working for multilateral organizations, Ernst & Young’s study on

the value added of International Organizations in Vienna counted 5,397 employees in 2008 of

which around 1,442 were Austrian citizens. In addition around 767 diplomats were based in

Vienna in that year as permanent residents (“Ernst&Young”, 2009, p. 13).

5.2.1. Private Spendings

By checking the study for spending on aviation related services by the attendees at

the IAEA privately, presumeably it should be found under the material expenditurtureof

“transport” making up 6.9 % or 17,9 M. EUR for diplomats and executives, and 8,7 % or 10,9

M. EUR for office staff (appendix G). This was calculated on the basis of 379,70 M. EUR

being paid in total to employees from International Organizations (“Ernst & Young”, 2009. p.

7923 1501 1643 161

44000

2462

7957 713

794

13494 8000 9458

0

10000

20000

30000

40000

50000

UN/UNODC UNIDO CTBTO IAEA OSCE Others

Members AUT

Members INT

Figure 2: Comparison of National and International Participants per Organization

Source: “Ernst & Young”, 2009, p. 28 (illustrated by author)


19). As shown in H, it is incremental for airlines to mention this factum, unless diplomats and

executive staff as employees of IOs are much better paid indiviually per year: € 120,637 and

€ 96,909 respectively. Unless, there is more money to spare in the case of diplomats or

executive staff the willingness to travel is higher by 1.8 % with office staff members,

measured according to private salary spent per reason for transport issues. Another study by

PriceWaterhouse Coopers (2002) calculated that the private spendings on aviation related

products by non-Austrian citizens has been around € 330 thousand in contrary to about € 6

thousand by Austrian citizens (PWC, 2002, p. 98).This can be justified simply by the fact that

non-locals usually arrive by plane in contrast to Austrian citizens usually are living within

Vienna’s metropolitan area. Domestic flights for business reasons in Austria are rather

unusual, as indicated by the factors.

5.2.2. Corporate Expenditures

In contrast, Price Waterhouse Coopers’ study (2002) divided those expenditures in

operating expenditure for the entire and the private spendings on airline services by the

employees and the spendings of additional conference attendees should be of relevance for the

following section (p. 98). Therefore a total amount of € 25,236 (thousand) has been spent on

avionics in the year of 2002, which is representing about 5.52 % of the overall amount spent

on goods and services used in Austria (€ 456,415 thousand). In even more detail it can be

stated that the organizations themselves declared around 71 % (€ 18,134 thousand) of aviation

related expenses as “their” operating expense. Thus, the avionic expenses made by attendees

of conferences for business reasons came up to around 24 % (€ 6,063 thousand) in relation to

the entire expenses for aviation services (PWC, 2002, p. 98).

Seen from a summarizing perspective, aviation is playing a vital role in the

convention business of International Organizations in Vienna. The overall figures for the

expenditures per required goods and services make clear that aviation is ranked under the top

five elements of expenditure, when it comes to the total amount of money being spent on

services. Therefore in 2002, all seven organization declared avionic services in total for €

11,210 (thousand), including all other International Organizations in Vienna this total would

rise up to € 18,134 (PWC, 2002, p. 82). As mentioned above the transport sector together with

the aviation industry contribute a lot to this development.


6. Vienna International Airport

6.1. Facts and Figures

The Austrian Aviation market is highly driven by the operations at the country’s

largest airport. Thus, Vienna has counted around 19,691,206passengers in 2010; which

represents an increase by around 8.71 % in comparison 2009.According to the latest available

figures on passenger numbers regarding all international and regional airports in Austria,

table…shows a market share of 80 % in the case of Vienna, directly being followed by

Salzburg with 6.6 % and Innsbruck holding a market share of 4.2 %. Linz Airport together

with Klagenfurt Airport comes up with low share figures of 2.8 % and 1.7 % respectively

(“Albatros”, 2011).

Figure 3 clearly presents on the left diagram that Vienna’s increase in passenger

numbers in the year of 2009 dramatically contributed to the total passenger numbers in Austria

taking into account as well passenger shares from all other regional airports. In this context a

high importance should be put towards Vienna’s transfer passengers. Under the regional

airports Salzburg is performing best, what is justified by a strong winter business. The same

reason should apply to Innsbruck. All other regionals come up with a low share and are

fulfilling a local infrastructure task. Hereby, around 5.9 % of the entire number of passengers

used the airport as a transfer destination, which is an increase by 8.6 % in comparison to 2009

(Vienna Airport, 2011, p. 2).

Figure 3: Scheduled Traffic at Austrian Airports in 2009

Source: “Statistik Austria”, 2010, p. 26


In fact the transfer passenger rate at Vienna Airport of an average of 30.57 %

remained relatively stable over the last four years, mostlikely being produced by Austrian

Airlines operations (Vienna Airport, 2011, p. 11). Generally speaking, around 172 destinations

can be reached ex Vienna. Important to mention hereby is the relatively high amount of 40

destinations located in Eastern Europe (Vienna Airport, 2011, p. 7). Graham (2005) described

that key prerequisites for a hub were a central geographic location and adequate runway or

terminal capacity to enable a ‘wave’ system of arriving and departing flights to take place

(p.165). This lead to the result of a 13.6 % increase in traffic to destinations in CEE. Passenger

traffic to the Middle East and Near East increased by 10 % in 2010, in comparison to 2009


Austrian Airlines as being the market share leader in Vienna (50.90 %) is followed by

NIKI (10.80 %) and by Air Berlin (7.1 %) and therefore clearly dominates the Vienna

operations. (Vienna Airport, 2011, p. 73).

It becomes as well evident, that the share of LCCs in Vienna is rather small and the

focus is more set on International O&Ds either transferring directly in Vienna or at another’s

FSNC’s hub.

Figure 4: Market Share per Carrier at Vienna Airport

Source: Vienna Airport, 2011, p. 73


Figure 5 demonstrates and analyses further the market development on routes to the

Middle and Near East strong increase can be recognized as well, especially on routes to Dubai

(+ 14.60 %), Tel Aviv (+6.1 %), Damascus (+19.20 %), Doha (+18.6 %), whereas the highest

growth rates can be fined at Amman, Jordan with (+53.3 %) (Vienna Aiport, 2011, p. 19).

Giving a reference to the points mentioned in chapter four, the increase in passenger number

to this region can be argued due to as a positive development for the hub-and-spoke concept of

the constantly growing Middle Easter Carriers as Emirates, Qatar Airways, and in case of

Vienna as well with Royal Jordanian Airlines. This stands in strong contrast to destinations as

Damascus or Tehran which represent most likely VFR traffic as well as leisure routes for

higher yielding explorer tourists on an O&D basis. Nevertheless political relationships as

previously mentioned play a major role to have these destinations at least served from Vienna

Airport. The same rules should apply to routes to Erbil, Baghdad or Aleppo. Austrian Airlines

holds various constent weekly frequencies to destinations in the Middle East. In many cases,

national carriers of the countries concerned are as well serving Vienna, but at a lower

frequency rate (Table 1).

Figure 5: Scheduled Traffic to the Middle East at Vienna Airport



Table 1: Airline Frequencies per Destination

Airport Frequency Airline 1 Frequency Airline2

AMM OS: 2 RJ 5

EBL OS: 6 -

BGW 3W: 6 OS 3

DAM OS: 7 -

TEH OS 4 IR: 3

TLV OS: 15 LY: 5

DXB OS 7 EK 13

DOH QR 7 -

The Boston Consulting Group study (2009) classifies Vienna as a “Secondary Hub”,

having characteristics like “medium share of transfer passengers”, “a diverse carrier mix”, and

“a growing number of LCCs”, which is all the real case with Vienna. The relatively low share

in transfer passengers together with the high market share of Austrian Airlines qualifies

Vienna as a “Secondary Hub and O&D airport” (BCG Study, 2009, p.4). This fact should be

seen in reference to the other two Lufthansa hubs in Frankfurt and Munich. Transfer passenger

wise Vienna holds a stable average transfer passenger rate of 30.58 % over the last four years


6.2. Airport Marketing at Vienna International

Airport marketing in a classical approach very often assumes an airport’s economic

importance for its environment and its region, where it is located and discusses the tasks which

need to be fulfilled by an airport. It is seen whether as a pure matter of infrastructure or as a

“high utilization asset, in use 365 days a year, providing a complete range of essential services

to a broad customer base” (Vogel, 2010, p. 20). “In most cases the airports thought, it was

solely the role of the airline to identify opportunities for new or expanded services and airline

routes” (Graham, 2001, p. 161).

The airport herewith is seen as a mean of infrastructure, purely because of the fact

that convention travellers attend a certain event or convention in the city in question and do

this, as discussed above by the travel expenses, quite frequently.Airlines and airports are all

serving the same travel segments, whereas the airport is the player at the interface, which

needs to satisfy most likely all customer segments belonging to its customers, the airlines.

So,“passengers are the consumers’ of the airports’ services and airlines should be its direct

Source: Vienna Airport, 2011 (own illustration)


customers” (Vogel, 2010, p. 79). Aspointed out by appendix I the airline “produces” demand

for airports in form of passengers, whereas passengers can be seen as the end-consumer of the

services provided by the airport as well as by the airline. The air transport value chain refers to

the end consumer as the customer of the airline, the travel agencies and tour operators. In

parallel the airport is seen as the the equipment provider, whereas the airline consequently is

situated at the intermediary point between between the airport and the passengers, serving and

being responsible for both. Graham (2001) describes that airports have two different

customers with two different kinds of requirements towards an airport: Passengers would

require a convenient destination mix, attractive flight fare, flight availability and timings,

frequency of services or fast-tracks for security control in case of business travellers. Airlines

usually do have completely different requirements, as marketing support, slot availability,

airport fees, competition or the catchment area. (Graham, 2001, p. 167).

The airport of Vienna is facing these exigencies by applying B2B and B2C marketing

(Vienna Airport Academy, n.d, p. 15). B2B marketing is primarily conducted in the form of a

tariff and incentive scheme for airlines flying to specific destinations at specific amount of

frequencies. This is done to keep good relationships to airlines, to maintain good hub

connectivity and attractivity for passengers. So, every airline “producing” a transfer passenger

receives € 8.21 per passenger as an incentive (Vienna Airport, 2010, p. 2).

In order to expand on this point, for Qatar Airways the so-called “High Frequency

Incentive” should be of relevance, where at 7 weekly frequencies to an

intercontinental destination a 40 % refund in landing fees for one schedule period is

applicable. The percentage in refund is rising if frequencies are increased. Moreover,

the agreement, which includes for example details on the aircraft type used and on the

current frequencies, is established between Vienna Airport and the airline in question.

In this context evidence by the airline about the current number of frequencies and by

a complete collection of invoices issued by the airport of Vienna should be presented

(Vienna Airport, 2010, pp. 3-5).

As an additional B2B activity, an airport’s committee visits travel related conferences

and exhibitions regularly in order to promote the airport’s ad-on services for airlines in traffic-


rights or infrastructure related issues as well.(Vienna Airport Academy, n.d., p. 16). B2C

marketing with Vienna Airport meanwhile is characterized by media campaigns in the

catchment area, and the organization of media campaigns on certain O&D markets is

organized (Vienna Airport Academy, n.d., p. 15).

Airports apply certain tariff incentives comparable to Vienna in order to attract

intention and build up customer loyalty towards the airlines. According to the airport’s annual

report of 2010 (2011) the B2C marketing is said to be concentrated on establishing Vienna as

a convenient transfer hub to Eastern European and Middle East, hereby meant in particular

transfer passengers from the Near East to Eastern- or Western European destinations (p. 106).

As it is common practice in aviation, the industry’s development is correlated to the GDP’s

development. After Vienna Airport’s annual report (2010), since 2000, the increase in

passenger number constantly has been higher than the annual GDP growth (p.70).”The

downturns in the years 2001, 2002 and 2009 probably had their roots in the financial crisis as

well as in the SARS epedemy” (Vienna Airport, 2011, p. 70).

7. Qatar Airways

According to C. West Qatar Airways has originally been set up as a budget carrier

focusing truly on leisure routes to London, Mumbai, Amman, or Chennai. Since its re-launch

Figure 6: Catchment Area, Vienna Airport



in January 1997 the airline has grown steadily focusing on business travellers as well as on

leisure travellers, so does the selection of the destinations served (2011, p.90). “In this highly

competitive environment, we have undergone a phenomenal expansion, with an average of 30

% growth per year”, says Qatar Airways Chief Executive Officer, Akbar Al-Baker (West,

2011, p.90).

7.1. Qatar Airways Status-Quo

Being the national carrier of the State of Qatar, Qatar Airways grew from four aircraft

serving thirteen destinations in its re-launch year in 1997 up to over 102 jets in 2011 flying to

over 110 destinations worldwide having transported around 16 million passengers in the

2010/2011 financial year (“Qatar Airways”, 2011a, p 1). Among many other awards as

“World’s Best Airline 2011”, or “Leading Business Class Airline in the Middle East”Qatar

Airways itself has been awarded as a “Five-Star Airline” by SKYTRAX 3among five other

airlines, for a third time in a row since 2008.This award holds true Qatar Airways’

commitment to provide all travellers with the highest quality of service in the air and on the

ground – whether business or leisure travellers (“Qatar Airways”, 2011b, p. 6). At the moment

Qatar Airways holds orders for around 232 aircraft achieving an average fleet age of 3.2 years

and employs 14.000 people (“Qatar Airways”, 2011a, p. 1).

7.2. Qatar Airways’ Business Model

At last, the airline of Qatar Airways is part of the “Qatar Airways Group”

incooperating subsidiaries as the Al Maha Services, Qatar Aviation Services, Qatar Aircraft

Catering Company, Qatar Duty Free, Qatar Distribution Company and Internal Media

Services. Sub-brands like QR Cargo, QR Holidays, QR QBiz, the Premium Terminal or the

Privilege Club are completing the entire Qatar Airways Holding (“Qatar Airways”, 2011c).

With all its sub-brand and its group Qatar Airways is forming and shaping Qatar’s aviation

scene truly from scratch and growing hand in hand with all the infrastructure involved. Akbar

Al-Baker adds further that one of the reason for the airline’s success is “the diversification and

expansion in other business areas” (West, 2011, p. 90). Figure 7 refers to such an “in-

sourcing” of several aviation business functions as the “traditional airline model”, having the

3 SKYTRAX is a London based professional Research Advisor to the air transport industry. It conduct

sindividual airline and airport passenger reviews on a regular basis to ensure consistent operational quality

(“Skytrax”, 2011)


advantage of an optimal level of adjustment and self-controlling of every single department

for guaranteed harmonized operations in the cargo and passenger sector (Vogel, 2009b, p.7).

From an airline business model point of view, Qatar Airways fulfills most typical

criteria of a Full Service Network Carrier, except of flight only for tour operations. It’s

business model is overlapping into other customer segments. Business travellers as well as the

leisure segment are attracted (Vogel, 2009a, p. 23). By operating a four waves hub and spoke

network at its base in Doha, Qatar as mentioned before, and by offering a competitive

schedule including high-frequency routes for business travellers in its intra- gulf network, the

airline stringently follows its focus on the two market segments of business and leisure

customers. In contrast, VFR and holiday traffic is attracted by the diversified destination

portfolio and a huge variety of pre- and after-flight service offered at reasonable prices (Vogel,

2009a, p. 52). This justifies that Qatar Airways intentionally serves overlapping markets

offering amenities and conditions being attractive for both target groups. “As point-to-point

demand between most destinations all over the world is usually low, however, hubbing is the

only way of offering services between most O&Ds” (Vogel, 2009a, p. 61).

Figure 7: Traditional Airline Model

Source: Vogel, H.-A. , 2009b, p. 7


7.3. Air Service Agreement between Qatar and Austria

According to issue 115 of the “National Law of the Republic of Austria” from 25

June 1991 this air service agreement went into force on 23 July 1991 (BGB 315/1991, 1991,

p. 1473)4. So the commercial services by Qatar Airways are originally based on this

agreement. In Articlethree5 the agreementstates:”Each country should have the right to name

oneparticular airline to operate commercial flights between the two countries", (BGB

315/1991, Section 3, 1991, p.1462). “Pursuant to Article 3 of this agreement, the Government

of the State of Qatar hereby designates Gulf Air Co. as the designated airline”. The State of

Qatar was a 25 % shareholder of Gulf Air, at this point in time, reports Craig West (2001, p.

60). The Republic of Austria has entitled Austrian Airlines for this reason, at this point in

time. In July 1994 a verbal note as an amendment of the existing air service agreement from

1991 followed by an additional condition:”Each Contracting Party shall have the right to

designate in writing to the other Contracting Party one airline or several airlines… for the

purpose of operating the agreed services on the specified routes” (BGB 221/1994, 1994, p.

5686). Since then Qatar Airways as a further airline has been entitled to enter the Austrian

market, beside of Austrian Airlines and Gulf Air Co as named before. All those named airlines

automatically enjoy the following rights:

“to fly without landing across the territory of the other Contracting Party;

to make stops in the said territory for non-traffic purposes; and

to take up and to put down passengers, cargo and mail at any point on the

specifiedroutes” (BGB 315/1991, Section 2(1), p. 1461).

Additionally, flights and frequencies have to be planned in a sufficient amount to

local and international demand and what is necessary to assure a continuous business

operation (BGB 315/1991, Section. 9 (4a), (4c), p. 1466).

4 In deviation to the APA citation style, the author cited the wordings of the law, as the numbers and articles of

the law would be the author. By doing so the tracking of sources is made easier. Within the reference section the

Republic of Austria is named as the author of these gazettes. The same procedure applies to the UN’s travel

policy discussed later in this paper. 5Furthermore Annex I specifies allowances to operate flights vice-versa from any point in the Austria to any point

located in Qatar (BGB 315/1991, 1991, p. 1473).


7.4. Passenger Flows

The airline has been serving Vienna since the year 2004. At that time the route

Vienna-Doha was operated via Munich four times a week. In 2006 daily operations Doha-

Vienna-Doha were introduced to ensure optimal connectivity at QR’s hub in Doha and as a

consequence seamless traveling for the passengers (H. Vystoupil, personal communication,

November, 3, 2010). In the current season6Qatar Airways uses an Airbus A320-200 with 144

seats, being equipped with 12 seats in Business Class and 132 seats in Economy Class

(“Seatguru”, 2010).

Table 2: Time Schedule, Qatar Airways Vienna Operations

Dep. Time

Dep Apt

Arr Time

Arr Apt

# Ops Days

Acft Stops Travel Time

11:20 VIE 18:35 DOH QR 094 3,5,7 320 Non-Stop 05:15 14:55 VIE 22:10 DOH QR 096 1,2,4,6 320 Non-Stop 05:15

Source: Vienna Airport, 2011 (own illustration)

In relation to the four hub waves, Qatar Airways has established the Vienna flights

having arrival times between 2200 and 2259 fitting for onward travel to destinations being

located in Asia / South East Asia, partly in Africa and other places in the Middle East having

departures between 0000 and 0259. In detail, flights from Vienna to Doha on Monday,

Tuesday, Thursday and Saturday are falling under the first large wave in the morning in Doha

(table 2). Flights operated on different days do offer the possibility to connect onwards to

other destinations leaving between 1800 and 2159 local time in Doha, which is belonging to

the fourth wave in late afternoon. Appendix K represents the respective departures in Doha,

ranked per hour and region together with the point in time of arrival and departure of the

Vienna flights (“Anna.Aero”, 2011). After further investigation one can come up with two

major and two minor waves operated by Qatar Airways in Doha. This makes it possible for

Europeans to travel through Doha, further on to their final destination located in Asia, Africa

or in the Middle East.

6Current flight plan season is the winter schedule 2011/2012.


As mentioned above, Sheikh Hamad bin Khalifa Al-Thani has signed a new air

service agreement during his last visit to Vienna7 (Foreign Ministry for European and Exterior

Affaires, personal communication, October 7, 2011). Furthermore, the currently valid

agreement says additionally, “each contracting party shall cause its designated airline to

provide to the aeronautical authorities of the other Contracting Party statistics related to the

traffic carried on the agreed services showing the points of embarkation and disembarkation.“

(BGB 315/1991, 1991, p. 1467). According to this, the following sub chapters describe the

passenger flows between Vienna and Doha in detail.

7.4.1. Passenger Figures Vienna-Doha (Total Route Passengers)

Appendix M gives insight about the passengers having travelled on the route Vienna-

Doha on Qatar Airways only, meaning that Doha might have been the end destination. While

presumably the financial and economic crisis would have been the reason for the decline of

around 85.60 % from 2007 to 2009. By taking into account recent variations but overall rising

figures, the calculated least squared trend projections foresee around 43.991 passengers for

2011 and around 49.018 passengers for 2012. Calculations start at the time of official records

in 2004.8 When using an Airbus A320 with 144 seats between Vienna and Doha, one comes

up with a SLF of 77.15 % in 2008 and 83.39 % in 2010, rising regularly, as shown in table 3.

Table 3: Annual Average Seat Load Factor VIE-DOH

Year SLF, VIE-DOH

2008 77,51 %

2009 70,39 %

2010 83,39 %

7Until the writing date of this paper information about the new air service agreement was not made available to

the public (see appendix L) (Federal Federal Ministry for International and European Affaires, personal

communication, October 7, 2011). 8The variable X should indicate the number of years after the initial year of 2004 (e.g. 7 = 2011). The method as

well as the least squared trend equation is applied on content from the Yield Management lecture by Mr. Leibold.

The same method applies to the following calculation with the final destination passengers.

Least squared trend equation: 8,799.4285 + 5,027.3214 x = (Route Passengers)

Source: Statistik Austria, 2011 (own illustration)


7.4.2. Passenger Figures Vienna-Doha (Final Destination)

On the other side of the spectrum, passenger numbers indicating Doha as their

possible end destination have been counted as well. Passengers arriving in Doha would have

entered the State of Qatar as their final destination. Herewith Qatar Airways holds an average

market share of around 96.92 % over the last seven years, as seen on table 4 below. The

underlying calculation was made by comparing the figures concerning all passengers flying to

Doha with those ones doing the same way onboard Qatar Airways only. Finally this means

that the preferred airline to visit Doha ex Vienna remains the national carrier of Qatar (see

appendices N and O.). Talking about Doha as a final destination, the trend projection precribes

25,795 passengers for 2011, and around 29,022 passengers for 2012, when starting at 2004.

Table 4: QR's Market Share on VIE-DOH, Final Destination

market share = 678.42 % / 7 = 96.917 %

7.4.3. Passenger Figures Doha-Vienna

Year Market Share (%) final destination

2004 98.32

2005 98.74

2006 98.55

2007 98.74

2008 94.84

2009 94.64

2010 94.59

Figure 8: QR's Passenger Number on DOH-VIE

0

10,000

20,000

30,000

40,000

50,000

2006 2007 2008 2009 2010

25,134

39,029 39,220 35,656

40,637

Source: “Statistik Austria”, 2011 (own illustration)


Least squared trend equation: 3,203.9999 + 3,227.2142 x = (Final Destination Passengers)


Table 5: Annual Average Seat Load Factor DOH-VIE

Year SLF, DOH-VIE

2008 81.06 %

2009 73.69 %

2010 83.98 %

Concerning the route DOH-VIE it is important to mention, that Qatar Airways comes

up to a market share of 100 % since 2006, as being the only carrier serving this route. By

taking into account the total number of passengers travelling on the route DOH-VIE and

comparing this by the incoming passenger numbers from Qatar; Qatar Airways seems to be

the preferred carrier to visit Austria ex Doha (passenger numbers are indicated by figure 8).

This development indicates that most of the people travelling to Vienna are going onboard

Qatar Airways, whereas Vienna might be their final destination. By operating this route by an

Airbus A320 these figures would assume seat load factors of constantly over 80 % as

indicated by table 5. Appendix P compares the number of inbound and outbound passengers to

and from Doha and shows nearly balanced sums in all observed years. In total, passenger

numbers on the route DOH-VIE are slightly larger in four out of five cases.

8. Challenges: Airlines in the Corporate Travel Market

In a broader sense, conference attendees of International Organizations are counted to

the Meeting, Incentives, Conferences and Event (MICE) market; whereas the composition of

all parties involved is not that complex as with “classical” conference attendees. Meetings and

conferences are mostly organized by their own on an ad-hoc basis. Furthermore, the planned

venues are fixed and services and product needed are acquired on an organization wide basis.

The facts and figures already raised should give an airline an impression about the potential

and the necessity to cope with convention travellers in Vienna as an individual customer

segment calling for separate relationship and promotion tools on a corporate client and key

account management level. To do this, the following is divided into “Relationship Marketing”

and “Destination Marketing”. Airlines themselves can only prepare for the dedicated

destinations served and the way how customers are treated by the application of an effective



key account management. Table 6 describes the common way how business travel is

organized and hereby raises in parallel the airlines’ role. Airlines as the pure suppliers of

transport services in this business travel segment need to adopt themselves to the special

requirements of the relevant market (incentives, trade fairs, etc). This can be done individually

or in cooperation with event companies or others. Weber and Chon (2002) hereby say: “The

reality is that political considerations often play an important role in the strategies and tactics

adopted by the various convention destination marketing organizations“ (p. 72). The author

will follow this aspect as a major corner point in the following analysis.

8.1. Customers versus Consumers

The crucial point in this regard is the differentiation between the “consumer” and the

“customer”. By definition the consumer is the person, who is actually travelling and

consuming, using the onboard product. At the other side of the spectrum, customers are those

who need to be convinced by an airline’s advantages, not only by the on - board product, but

as well on a corporate contract level. Whereas the decision with consumers remains at one

person or instance in the case of leisure customer going on holidays, or “independent”

business travellers, decisions with customers often go through variable instances in the form of

an in-house travel department or a dedicated travel manager. This is where effective

Relationship Marketing comes into play. Appendix Q clearly lists the supply side of business

travel in the case of delegates attending a professional association conference. Here it becomes

evident, that suppliers for transport services are operating in a “transit zones”, at the

Source: Swarbrook & Horner, 2011, p. 71

Table 6: Different Sectors in Business Travel and Tourism


cornerpoint between direct sales and indirect sales to conference organizations or to travel

agents. Furthermore, it points out the possibility of direct sales to the passengers in contrast to

sales via intermediaries as travel agents or a company wide travel departments in form of

quotas.

8.2. Decision-Making Units

So called “Decision Management Units” are an accumulation of decision takers in

large companies who usually take the purchasing decision. “This is usually done by corporate

executives either acting as the ‘Deciders’ [making the final purchasing decision in the firm’s

interest] or by ‘Gatekeepers’ [secretaries or Personal Assistant coordinating appointments]”.

Furthermore, “Buyers” who are by definition “those who negotiate the final deal with the

different suppliers” (Shaw, 2009, pp. 12-13). They usually are as well in the position to

negotiate contractual conditions, discounts or mileage bonuses (Shaw, 2009, p.14). At last,

“Influences” are working in collaboration with the buyers and may influence the final

purchasing decision and may occur in an interior or exterior way (Shaw, 2009, p. 15).

“At first instance, Qatar Airways is talking directly to the travel secretary, followed up by a

seminar pointing out features about QR’s service to convince the responsible persons. If the

process was successful, a so-called “full-access proposal” a certain discount rate is applied

according to the predicted volume. This rate is then included in the agreement with Qatar

Airways” (J. Cusmano, personal communication, August 16, 2011).

8.2.1. United Nations Travel Policy

Budget-constraint and globally acting organizations as International Organizations

are funded by member states’ annual fee. The above discussed instances travel decisions need

to go through are applicable travel policies. The steady increase in employees traveling for

those organizations calls for dedicated travel departments being in charge to overlook the

travel expenses. In this regard, R. Davidson and B. Cope (2003) explain: “Such documents

provide staff with a vital point of reference for determing their company’s policy on business

travel … (p. 41).

To provide the reader with a snapshot in this regard, an administration instruction for

official travel document ST/AI/2006/4 from 27 November 2006 states in relation to the

standards at air travel, that economy class should be the preferred class, unless for the Deputy


Secretary-General first class travel is applicable for official business travel (ST/AI/2006/4, 4.2

(a), 2006, p.2). Furthermore, “For Under-Secretaries-General, Assistant Secretaries-General,

… the class immediately below first class shall be provided for travel of official business”

(ST/AI/2006/4, 4.2 (c), 2006, p. 3).

8.2.2. Application of the Decision Making Unit to International Organizations

The description raised above gives insight about the fact, that International

Organizations are mostly organizing the conventions themselves by having access to own

facilities and venues. Having analyzed the United Nation’s official travel policy “Buyers” and

“Gatekeepers” would be characterized by the “Executive or the Administrative Office of the

Secretary General” (or the respective heads of department for Secretary General Assistants) to

which the travel reimbursement claims should be submitted to (ST/AI/2005/7, 3.2 (a), 2005, p.

1). Under Section 11, staff members are asked to submit a “completed travel reimbursement

claim to the executive or administrative office” (ST/AI/2006/4, 2006, p. 8). So travel expenses

under the given standards are reimbursed. The respective travel form, which needs to be

completed on a quarterly basis and to be submitted to the Executive Office of the Secretary

General is shown in appendix R.

Following this article, the administrative instruction amending administrative

instruction ST/AI/2000/20, prescribes that official travel by senior officials at the Under-

Secretary-General levels shall be reported to the Executive Office of the Secretary General,

while special requirements have to be fulfilled (ST/AI/2005/7, 3.2 (a), 2005, p.1). When it

comes to the money spent on official travel, the executive office to the secretary general needs

to be informed twice a year, every half-year time (ST/AI/2005/7, 3.2 (b) 2005, p.1).

As the travel policy prescribes, employees need to look themselves for the least

expensive and the most economical air transport solution. The end-users of the flight are

indeed the “Deciders” and the passengers eventually combined in one person. “Influencers” in

this case could be at least colleagues of the respective employee or potential passengers

recommending a particular airline by word-of-mouth and by the travellers’ own experiences.

For official business trips, travel in economy class is prescribed (ST/AI/2006/4, Section 4(2),

2006, p. 2). In the case of Deputy Secretary-General, travel in first class is permitted during all

occasions. Nevertheless, the same applies for the Secretary-General’s and Deputy’s staff

(ST/AI/2006/4, Section 4 (2) (a,b), 2006, p. 3). For official business travel by Assistant


Secretaries-General and family members as well as by staff members, travel class under first

class should apply (ST/AI/2006/4, Section 4 (c,d), 2006, p. 3). Therefore, members belonging

to such a hierarchy are asked to conduct air travel at the most economical rate available,

meaning as well possible discounts available (ST/AI/2006/4, Section 4 (3), 2006, p. 3).

Exceptions to the class in air travel under certain circumstances can be grated, which are in

correlation to medical issues or the transportation of VIPs. The form to be completed then is

shown under appendix S and gives further insights.

8.3. Characteristics of Convention Travellers

8.3.1. Travel Pattern

Convention Travellers attending conferences for International Organizations are

characterized by internationality, by high professionalism and by a constant travel pattern

attending ad-hoc conferences in frequent cases. Furthermore, International Organizations tend

to hold conferences even during tough economic times, so good relationships to such kind

organizations can pay off very likely once in a while. These statements can be justified by

table 6 below, listing the amount of meetings per month over the last few years in the VIC,

Vienna:

In fact, the number of meetings still holds to be high even during the economic crisis

in the years of 2008 and 2009. While there is no official data available on meeting patterns at

other places of International Organizations in Vienna the situation is assumed to look similar

there. As shown in the diagram meeting patterns are highly influenced by seasonality. The

Table 7: Number of Meetings at the VIC

0

50

100

150

200

250

Jan

/08

Mar

/…

May

/…

Jul/

08

Sep

/08

No

v/…

Jan

/09

Mar

/…

May

/…

Jul/

09

Sep

/09

No

v/…

Jan

/10

Mar

/…

May

/…

Jul/

10

Sep

/10

No

v/…

Jan

/11

Mar

/…

May

/…

Jul/

11

Sep

/11

No

v/…

Source: United Nations Vienna, 2011 (own illustration)


number of planned meetings declines during Christmas time and in the summer months during

annual leave from June to August. Conference activity peaks in March, Mai, March and

September. “Leisure travellers are as well accepting connection times of 2-4 hours. At a share

of 60 % leisure travellers at Vienna, Qatar Airways also wants to put high-yield business

customers into the limelight”, says Cusmano (J. Cusmano, personal communication, August

16, 2011). Seen from a global perspective in figure 9, this factum deduced from the relatively

high percentage of leisure travel of around 49 %, followed by VFR travel with 27 % and only

17 % for business travel (Teyssier, 2011, p. 8).

It can be assumed that travelling in the case of convention participants mainly occurs

during working time from Monday to Friday. Additionally, people would be of a relatively

high educational, managerial level in the age-group from 40-65 years and would frequently be

accompanied by colleagues from the same organization.

8.3.2. Corporate Travel Survey

While there are differences between “independent business travellers” and convention

travellers when it comes to distribution channels, they most likely share the same opinion on

suggestions and critical points, airlines should improve before and during travel. The Ascend

corporate travel survey 20119 reveals, that on the one hand “crowded planes”, the “increase in

security queues”, and the “decline in airline service board”, were among the top three issues

9 Ascend is an aviation intelligence company having branches in London, Hong Kong, Tokyo and New York, and

conducts corporate travel survey since 1990 .More than 380 respondents from different companies worldwide

frequently travelling by air were survey in February 2011 (Ascend, 2011, p. 2).

Figure 9: Worldwide Traffic per Travel Purpose

Teyssier, 2011, p. 8


gone worse over the last two years (Ascend, 2011, p. 6). On the other hand, elements like

“greater efficiency in check-in” and “pre-flight services”, “more choice of LCCs” and

“cheaper fares more available” have become better over the last two years (Ascend, 2011, p.

7). These responses make clear, that airlines are forced to keep up service orientation at a

reasonable price and cost structure (see appendix T).

What holds against the trend is the cognition that the majority of respondents is flying

in “business class”, being followed by “economy class” and “premium economy class”

(Ascend, 2011, p. 10).

8.4. Key Account Management

Despite of the well-known business traveller requirements during air travel such as

frequencies, punctuality, ticket flexibility, airport location and access, and in-flight services,

special customer requirements need to be prioritized and be put in the limelight of the entire

customer service processes. Key Account Management aims at a diversification in distribution

channels to serve dedicated customers and has a network of several contact points at its

command to satisfy the customers’ wishes (Johnston & Clark, 2008, p. 98).

Customer Expectation

The satisfaction level of a customer is usually influenced by many different

components, as satisfaction is temporary intuitive personal well-being, according to one’s

expectation of a service. Airline service can make a difference in various points, such as the

right price, followed by a good personal pre- after- and on-board service, and by the marketing

which is applied. The key is not to deliver just a satisfactory or the at least desirable service.

Especially in an ever changing and highly competitive environment, airlines need to go the

extra mile (Johnston & Clark, 2008, p. 119). While onboard service is more or less equivalent

to “mass-marketing” depending on the respective booking class, the real customization is only

possible before and after the flight.

The subject of customer expectation is therefore an issue being most influenced by

many aspects beyond the transport service. In order to balance expectations and perceptions

about the onboard service key account management therefore need to encourage potential

customers about the awaiting experience and concluding satisfaction (Johnston & Clark, 2008,

pp. 108-109). According to Qatar Airways’ positioning as a “Five-Star Airline” customers’


expectations qualifie to be high on the airline’s but as well on the customers’ side. Related to

this fact the author describes relationship marketing and destination marketing tools for this

purpose in the following chapter.

9. Combination Relationship Marketing & Destination Marketing

9.1. Relationship Marketing

“No longer, is an international trip solely seen as one across the Atlantic or the

occasional business trip to Asia or the rare government trip to the developing world[…]

Transport has become both a need and a want, and it is critical to human interaction,

development and the increase in work-live-balance.”, tells Akbar Al-Baker, CEO of Qatar

Airways (as cited in West, 2010, p. 44).Airlines nowadays are investing fortunes into targeted

and non-targeted marketing activities in order to acquire new customers and to increase

market share on relevant markets. Having in mind growing customer expectations and an ever

changing business environment it is very often the solid and satisfied customer base becoming

frequent passengers who make certain routes and markets worth to serve and necessary to

focus the marketing activities according this segment’s situation and requirements.

Especially in the airline industry, the techniques of relationship marketing enjoy more

enhancement than ever before, because of the fact, that marketing activities can be bundled

and created in a more effective way in order to get in touch with the most profitable customer

group. Shaw (2009) describes, “Relationship Marketing is a marketing philosophy whereby a

firm gives equal or greater emphasis to the maintenance and strengthening of its relationships

with its existing customers as it does to the necessary search fornew customers” (p.241).

As Qatar Airways is a rather young company, the airline is still in the process of building up

its own solid customer base and needs to look for various ways how to persuade potential

customers about the airline’s commitment to service, quality management and on-time

performance. In times of competitors entering and leaving markets the on-ground and on-

board service is the only way how to stand up from the crowd. This is the point where

relationship marketing comes into place as a kind of “value-added” services being provided to

the customer. “Relationship Management, the corresponding customer retention together with

customer loyalty can be a much promising contribution to a brand’s equity, only measurable


by the airline’s goodwill as a valuable asset. Brand Management has much to do with a

customers’ lifetime value”, (Baker et al., 2006, p. 97).

If an airline intends to serve this market segment one is speaking about “Relationship

Exchange” as they “try to build explicit relationships with their core, high value flyers and

corporate accounts in particular”, so says S. Holloway (Holloway & Horner, 2002, p.199).

Moreover the intention is driven to customer retention and the creation of partnership by direct

communication with individual branding. “In the industry, service is called the ‘true face’, it is

what ‘makes and breaks the customer’ ” reveals Mr. Cusmano (J. Cusmano, personal

communication, August 16, 2011).

9.1.1. The Inevitability of Relationship Management

“In today’s customer retention plannings, the single customer transaction is replaced

by a constant well-established customer commitment programme” (Bruhn & Homburg, 2005,

p. 161). The operations of airlines are traditionally influenced by many factors, let it be

governmental restrictions, technical restrictions, infrastructure restrictions, labour restrictions

and the fictional restriction of demand between the two points of service. Therefore it makes

sense to distinguish between demand-related relationships and a management-related

relationship to relevant customers (Bruhn & Homburg, 2005, p. 149). In the sense of corporate

accounts, both aspects should be taken into account. Airlines in particular are serving many

transactional contracts, meaning simple flight bookings by persons travelling one or two times

a year, of which target it is to convince the customer to re-consume the product. According to

appendix X serving corporate accounts is comparable to a strategic relationship, being

dominated by a long-term, close and co-operative customer relationship, seen in contrast to a

transactional relationship.

Beside of the generating full attention towards the most relevant customers,

relationship marketing efforts include all other aspects involved being of relevance for a

successful operation (Bruhn & Homburg, 2005, p.149). Therefore the author has mentioned

political and diplomatic relationships between Austria and Qatar. The outlined travel policy

should present the typical situation at travel-budget constraint firms; airlines find themselves

on a path between the “preference strategy” and a “price-quantity strategy”. On the one hand,

employees are asked to keep travel costs low, on the other hand, the airline has to cope with

customers’ expectations. “The majority of leisure travellers is not that much brand conscious


and therefore is not extensively quality conscious” (J. Cusmano, personal communication,

August 16, 2011).

9.2. Relationship Marketing Tools Applicable for Qatar Airways

9.2.1. Total Product Concept

The situation is further illustrated by the “Total Product Concept” (appendix U) by

Theodore Levitt (Baker et al, 2006, pp.74-75). The flight as such is categorized as the “generic

product”. It is the reason why the service is purchased, namely because of the transport;

“Expected Products” together with “augmented products” clearly represent add-on features as

onboard service and other amenities offered. So-called “Potential Products” describe “future

plans and strategic adjustments and transformations”, (Baker et al, 2006, pp. 74-75). Exactly at

this stage for the most airlines the possibility is given to make a difference against its

competitors. The more adjustments and strategy copies are conducted among airlines, the

higher the expectations of customers may get, making it even harder for real comparisons.

Following the “Total Product Concept” the author categorized Qatar Airways’ positioning as a

“Five-Star-Airline” with the “Augmented Product”. By doing so, the airline sets high

standards to even increase the service- and connection reltated gap between competitors and

the airline itself. The author adopted the “Total Product Concept” according to Qatar Airways’

situation by raising the one or the other possibility for further service expansions, especially in

the upper levels. The “Total Product Concept” has been adopted and amended in order to

visualize a general product description in the industry.

9.2.2. Customer Typology

Following the subject of customer and market segmentation the author adopted the

“Customer Typology Matrix” according to Qatar Airways’ business situation in Vienna. The

matrix classifies corporate clients’dependant on their satisfaction and loyalty (Faltermaier,

2011, p. 27). This model implies certain price consciousness and a relative freedom of choice

concerning the airline (appendix V). Implementing this on the situation with the UN’s travel

policy the models builds a mission in customer typology which needs to be reached. The

potential or current corporate clients can be divided into “Mercenary”, “Terrorists”,

“Hostages” and “Apostles “. The highest in investment and attention is to be put in the last

group. While the probability of people becoming “Terrorists” is relatively low with the


United Nations, the edges marked with “Focus” should represent the customers being most

relevant for the airline. Moreover it describes the troublesomeness to cope with clients

constantly being on the border line to become less loyal or less satisfied with the service

provided and therefore being classified differently. The author included possible scenarios

during the customer relationship period with International Organizations.

9.2.3. Customer Management Tools

Having understood UN’s travel standards and the total travel expenses by

International Organizations the next chapter focuses on the operations and delivery systems.

Hereby the author refers to certain tools of the relationship management possibly required for

successful customer retention, divided into a transaction-wise, a relationship-wise and a

contract-wise management of customers. They are applied in several ways in the sense of

price, distribution and the right communication channel. Bruhn and Homburg (2006) describe

them as “Groups of tools for customer management” (appendix W), where the choice of tools

used should be in line with the status quo of the above described customer life-time circle.

Implemented in the best way, a mixture of all three types should be applied, according to the

quality of the relationship to the customers (Bruhn & Homburg, 2006, pp. 242-243).

9.2.4. Service Operations Management

Relationship Marketing and Destination Marketing, both are clearly linked to Service

Operations Management. It is seen as a “term that is used to cover the activities, decisions and

responsibilities of operations managers in service organizations” (Johnston & Clark, 2008, p.

4). Since the aviation industry is a very service driven line of business, very much needs to be

focused on service experience and expectations. Whilst Mr. Cusmano (2011), does not see the

necessity to establish a dedicated sales team in Vienna, since the volume of business

customers (40 %) would be too low to justify such a decision, personal relationships through a

task-crossing sales force would be advisable (J. Cusmano, personal communication, August

16, 2011).

Contractual agreements or partnerships are based on “personal relationships” and a

less accurate formalities and do belong to transactional relationships. In contrary, the strategic

relationship seems to be more important in this context, as it is driven by “shared long term

objectives […]” and “a close working relationship” based on each other’s partner selection


criterias (Johnston & Clark, 2008, p. 95). Appendix V is listing the most important

characteristics of those two approaches and makes clear why those two approaches need to be

balanced in order to stay successful in the corporate business.

9.2.5. “Flight Product Experience Diagram”

Regarding Services Operations the author produced a dedicated chart (appendix Y) is

roughly indicating the time needed per party involved in relation to the total time needed for

the entire customer retention process. To do so, the author divided the time line into eight sub-

points, from the business approach, to the monitoring and the assessment of performances.

Therefore the first two steps are mostly airline driven and put the customer in the limelight of

all actions. Hereby the author put the focus either on the “customers” or on the “consumers”

depending on the case related intermediary. In contrast to the following four steps being

dominated by the airport as well as by airline operations, the last two steps concerning after

the flight services and performance measurement need to be implied by the customer as well

as by the consumer. Then the airline is in the position to review the entire process in a

retrospective way and can evaluate expectations and current performance levels. In this

diagram the airport and the ground handler are working only on behalf of the airline, whereas

it is the airline as such setting the standards for their work. Following this logic, actual- and

after flight activities together with the performance assessment are those steps being under full

control of the airline again, as indicated in the appendix.

The most critical phases are seen during the business approach and during

negotiations. At these stages, an airline must take full usage of its promotion activities and

abilities. The author adopted this model in regard to the customer lifetime cycle, broken up

into the sequences of an individual flight per employee. For the airline then it is advantageous

to follow the lifetime cycle when planning actions in this regard.

9.2.6. Customer Lifetime Cycle

C. Homburg and F.G. Sieben (2005) explain that, “The purpose of a customer

lifetime cycle is to project the actual line of business relationship against the planned one”

(p.450). Nevertheless, individual contact options between the airline and the potential or

regular customer should be assuredat each stage of the cycle. Therefore, C. Homburg and F.G.


Sieben (2005) herewith refer to the necessity of pro-active communication at the beginning of

the business approach and to a kind of reactive communication in the case of a saturated as

well as of a decline line (p. 451). Consequently, the author presents an amended relationship

life cycle for Qatar Airways’ situation in Vienna as shown in appendix Z. A possible approach

strategy and customer treatment strategy together with tactics and certain communication

methods are pointed out. The intensivity of customer care is depending on the phase and the

actual development of the lifetime cycle. Focusing on the customer life cycle in particular, M.

Bruhn and C. Homburg say that the diversification of a relationship into several phases may

help to establish a starting point for the identification of future potential and negotiations

between the airline and the future customer (2005, p. 451). The author raised the method of

the customer lifetime cycle at this early stage, as it provides a good overview of the necessary

steps which need to be undertaken.

9.3. Destination Marketing

R. Davidson and B. Cope (2003) explain that preferred places should have a positive

image, should be easy accessible on an international level and located in a politically stable

area by as well ensuring certain living standards for employees in order to ensure effective and

discrete meetings and conventions (pp. 109-112). According to J. Swarbrooke and S. Horner

(2001) the role of a destination is varying between the several types of business trips (p. 37).

So, the impression of a destination of such convention participants may vary individually,

compared to pre-organized group travel conventions.

9.3.1. Destination Marketing at the City of Vienna

Undoubtly, Vienna as a city as such is seen as an internationally recognized tourism

and business destination. J. Swarbrook and S. Horner (2001) refer to a destination as a

conglomerate of various elements from transport networks, number accommodations, various

indications for living standards to convention centers and tourist attractions (p. 60). Some of

those elements could be the service quality at an airport, a high-quality accommodation, and

centers for research and education. Regarding the establishment of IOs in Vienna one can say,

that the city’s management has undergone a phase of partial adoption to the requirements of

IO’s employees. Cities usually have the chance to adopt and change current assets and some

image perceptions according to its plans in terms of investments into new real-estates or other


projects. In this regard it is important to find out, how a city is marketing itself and which kind

of visitors it would like to attract. For Vienna, a dedicated policy document gives more insight

on the city’s border-crossing image strategy conducted. Vienna’s location at the edge to

Eastern Europe should play a role at the city’s image for the financial and the insurance

business and economics which should be strengthened (City of Vienna, 2011).

The statement of “Vienna as one of Europe’s most important metropolis” and its

positioning as a “place for global communication”, refers to the city’s international political

competence and its function as a place for conflict mediation. The plan hereby includes

several promotion activities to attract further NGOs to come to Vienna (City of Vienna, 2011,

pp. 5-11). According to this marketing plan, cooperations with those countries on the medical

and tourist sectors are planned (City of Vienna, 2011, p. 9). Bieger (2005) reports, that

marketing a destination is managed by bundling relevant services as a product to attract

various but special target groups (p. 157). Destinations are therefore sharing similar

characteristics as the airline product, as the experience of a city is created as the same time it is

consumed. Bieger (2005) divides this into political institutions being responsible for strategic

mission statements and development plans, into tourism organizations who are working on the

marketing strategy of a city, and in the suppliers working on the implementation of the

strategy (p.285). Appendix A 1 lists “politics”, “tourism organizations” and the “individual

suppliers” as the relevant components of destination management. So politics are pre-

determing the image a destinations is going to have, being followed by destination marketing

organizations to be responsible for the right promotion acitivities. Suppliers, as airlines and

hotels are working purely as implementive instances in the marketing communication concept.

9.3.2. Destination Marketing at Airlines

9.3.2.1. Qatar Airways as a Global Corporate Brand

Unless, there will be a dedicated paragraph on “corporate branding” in the next

chapter the author would like to raise this theme already at this stage in connection with

destination marketing. A common practice of Gulf carrier’s over the last few years has been to

establish airlines as a “promoter” not only in their own interest, but as well for their nation

they are operating for. In a broader sense, beside of the economical value, both Qatar Airways

and Emirates have been used as an “ambassador” for the transmission of images of a positive


development in the states in question (Sohail, n.d., p. 1). The airlines of the repective countries

intentionally are positioned as a tool to promote the home countries gobally by incooperating

traditions and stereotypes (e.g. Arabian hospitality and luxury) in their service concepts.

By acquiring leading sport events like the soccer world cup 2022 or the Athletics

World Championship 2012, the airline is put in the position of being a driving force for the

country’s incoming tourism development. In parallel Qatar hosted 13 association meetings in

2009 and 2010, respectively (ICCA, 2011, p. 57). Eventually, Qatar welcomed around

964.000 visitors in 2007, whereas still around 95 % were coming out of business reasons

(“Qatartourism”, 2011). In contrast, the UNWTO says in its last report,” The success of

Qatar’s hosting of the World Cup in 2022 would lead to a boom in the travel industry and an

unprecented number of tourists and travellers to the Middle East. Additionally, Qatar currently

hosts more than 35 exhibitions and events in the Doha convention centre, e.g. the‘20th

Qatar

Petroleum Congress […]”, (as cited in “Qatartourism”, 2011). Therefore, Sohail (n.d.)

explains that Qatar Airways’ positioning is dominated by the “living of cultural awareness,

providing the values of hospitality of Qatar, but understanding and caring for people from all

cultures and backgrounds” (p. 11). This internationality helps to be applied in the leisure as

well as in the business segment. In collaboration with the in-house tourism travel agencies of

other NGOs in Vienna Qatar Airways is in the position to gain share to get those travel

agencies selling a certain amount of seats in a dedicated period of time.

“The airline calls these activities a ‘targeted point of sale promotion’. This strategy

fits to untargeted investments as the ‘performance linked bonds’; whereas a lump sum

is paid to one of the most important tour operators, who are then distributing parts of

the sum among them” (J. Cusmano, personal communication, August 16, 2011).

9.3.2.2. Price Setting According to Yield

With network carriers, destinations are as well analyzed according to their

contribution to the overall airline’s network. From a bid-pricing point of view Vienna is

contributing a majority of its passengers into the network, transporting only a minority only

between Vienna and Doha. While O&D demand within the gulf region is still in the growing

phase, feeder flights are definitively under a bit-price investigation in the airline’s yield

management. Maurer (2003) explains that the “customer value” depends on the price paid, on

the customers’ data available, on the POS, as well as on the itinerary booked (p. 318).


Following the travel policy’s logic and Mr. Cusmano’s answers, it would not be worthwile to

introduce a dedicated booking class for diplomats in Vienna (J. Cusmano, personal

communication, August 16, 2011). Unless a few booking classes can be blocked on the O&D

VIE-DOH, while others for onward travel still remain open, the international relations of IOs

can be an advantage for airlines since the long-term impact on the network could partly

outweigh the lower-yielding leisure tourists’ contribution. Also, the importance of the POS

regarding International Organizations should not be underestimated and higher capacity on

short notice could be needed. Nevertheless, according to the Boston-Consulting-Group Study

from 2011 the European routes belong to the most profitable ones within the network of

Middle Eastern carriers, making O&D traffic from Europe to the Middle East even more

attractive. Appendix B 1 indicates an overall growth by 9.4 % in Europe from 2005 until 2010

together with growth rates of more than 10 % in Southeast and Northeast Asia. Routes to these

regions play a key role for sales activities in Vienna. They seem to be most appropriate by

minimizing the detour factor by flying via a Middle Eastern hub.

The Boston Consulting Group found out that especially direct routes from a European

destination to a Middle Eastern hub remain to be the most profitable ones according to the

yield, depending on the kilometers flown (“BCG”, 2011, p. 7). As a result, real-long haul

flights to Asia via a hub in the Middle East are faced with lower yields and profits generated.

Furthermore, European routes show up with a share of 35 % from the overall ASKs and much

higher profitability, followed by the South-East Asia routes having a share of 45 % (“BCG”,

2011, p. 7). “The price should always correlate to the product an airline is offering, which is

constantly benchmarked pro-actively against those of the competitors“ (J. Cusmano, personal

communication, August 16, 2011). While the connections to destinations elsewhere in the

Middle East show relatively stable profitability figures intercontinental connections seem to be

rather unattractive (Appendix C 1).“ In all cases, the competitors’ prices need to be double-

checked constantly. Neverthless, in the sense of prices, the product as such needs to be valued

and not underestimated” (J. Cusmano, personal communication, August 16, 2011). When it

comes to the route Vienna-Doha on occupancy related revenue management, Qatar Airways

could offer the service at a higher or even equal price against its competitors, willing to protect

its home-market in Qatar. This is as well to avoid further competitors to step into the market,

trying to acquire feeder traffic (Leibold, 2009, p. 27). Consquently, exclusive inofficial market


prices offered via dedicated (corporate) distribution channles to specific target groups, not

being accessable for every customer segment, as backend or upfront incentives, can be a

solution for authorized passengers. On the one hand, a sustainable O&D traffic is hold; on the

other hand, the airline can count on VFR traffic from Vienna to South East Asian destinations.

The POS in case of such organizations should be prioritized to ensure a strategic business

relationship. In priority to that, examinations on the most popular itineraries ex Vienna should

be conducted.

10. Recommendations

10.1. Integrated Marketing Communication Process

Political leaders used their own network and specific abilities to communicate

advantageous sides of their country to build up a dedicated global image. With an integrated

marketing approach (Appendix D 1) all parties and business procedures are taken into

consideration.

10.1.1. The Eight-Steps Communication Process

The Eight-Step Integrated Global Marketing Communication Process by Kitchen and Schultz

(2000) summarizes roughly the steps necessary to “lead the planner through the various steps

involved in developing a successful communication program” (p. 67). While it is possible to

apply individual, single steps rather than the entire cycle, the author guided the reader through

thesesteps in a relationship marketing and destination marketing point of view.

Initially starting at step 2 “Customer/Prospect Valuation”, as a reasonable customer

database is to be set up right after the agreement for a corporate contract has been

made. Steps 3 to Step 5 are dominated by evaluating possible promotion activities,

contact points and brand development. These activites are conducted during the

approach and at the starting phase of the business. The “estimation of the ROCI” (step

6) is to be made during the business phase and at end of each contract period, what is

of extensive importance with convention travellers of IOs. Eventually, the airline

decides if it is worth to further invest into this kind of market segment. “Market

Measurement” (Step 8) describes the market’s attractiveness and assesses the

performance of all activities in the cycle. Finally, valuable information for the database

in step one is delivered (Schulz & Kitchen, 2000, pp. 77-85).


The airline as the initiator is dependent on institutions like the IOs themselves, the

city of Vienna and the airport of Vienna at the same time, while putting all those together in a

sequence of being advantageous for Qatar Airways.

10.1.2. Corporate Branding

Having said that, airlines can achieve this status through an “Integrated Marketing

Communication”, where the creation of brand awareness and brand loyalty are in the center of

all efforts. “ ‘Corporate Identity’ aims to create a positive image among the public […] and

has the task of co-ordinating and integrating the different possibilities of communication in

order to achieve a certain identity specific to the enterprise” (Baker et al, 2006, p. 168).

Branding is not only used to stay out from competitors, but as well to create some kind of

public’s assimilation to a certain company, which has much in common with the company’s

origin country. Schultz and Kitchen (2000) therefore say: “Undoubtly, the brand has become

or is becoming the dynamic hub around which all marketing efforts and communication

revolves” (p. 55). All the mentioned components (table 8) are forming the corporate strategy

of Qatar Airways10

, which are used to make the airline a global player, and to influence the

perception of the State of Qatar positively. The target is to provide each target group the same

impression of corporate identity in-cooperating relationship tools tailor-made for each

segment. In order to achieve this status, an integrated communication in all elements of the

airline is necessary to better understand customer behaviour.

Table 8: QR 'Corporate Identity Policy'

Corporate Communication

Sponsorships & Co-Branding, CRM Product Development

Advertising, Direct Marketing & PR Website, E-Commerce, Online reservations

Merchandising, duty-free shopping, … Literature, stationery, leaflets, brochures,…

Corporate Behaviour, Corporate Design

Environment: livery, exhibitions, trade shows Corp. Behaviour: uniforms, customer care

10

The author divided the content of table 8 through the application of an Corporate Identity overview table into

“Corporate Communications”, “Corporate Behaviour” and “Corporate Design”. Adopted from Baker et al, 2006,

p. 169.

Source: Sohail, 2004, as cited of Kaur, p.4 (own illustration)


Following up on corporate identity, the “The Four Key Elements of the Organization“

by Schultz and Kitchen (2000) (appendix F 1) describe a brand to be the driver in order to

become a valuable corporate asset with a high brand equity (pp. 56-57). This chart shows a

snapshot in which areas of an organization “corporate communications”, “corporate

behaviour” and “corporate design” (see table 8) is organized, having the brand as such in the

center of the efforts. According to the author’s view, this “lived” corporate identity is mainly

invented and implemented by internal forces such the employees or owners of the airline.

More important than that is the positive effect such activities do have to external forces

including the customers of Qatar Airways, equipment suppliers and media partners; therefore

influencing the overall image building process.

10.1.3. “Marketing Communciation Process”

For a better illustration of the entire situation, the author expands on the diagram in

appendix E 1. It prescribes the major players involved in the process, which need to be

adopted in the IO’s way – as they are the final customers - but as well in the airline’s way as it

is the initiator in this activity. From the author’s point of view the airline represents the

smallest and must influential player in the case of Vienna. The arrows at the bottom clearly

indicate the directions and the origins of the marketing communications. Qatar Airways as the

geographical-wise most flexible, but in the others’ opinions most exchangeable party is forced

to convince the other instances about its intention to serve a new market segment. This should

be conducted in a coordinated way, primarily in favour for the airline, Qatar Airways.

Relationship Marketing is not only an airline’s task then. As mentioned within the first

chapters, International Organizations themselves need to be looked after by the Republic of

Austria on a diplomatic level. For serving a special customer as the IOs the entire process now

goes hand-in-hand with others involved; the city of Vienna, the airline as well as the airport

are not mutually exclusive segments any more. Politics still plays a major role in every four

parties involved, as indicated in the graph. On the other hand, destination marketing as such is

an activity where airlines do not have that much influence on.


10.2. Practical Solutions

10.2.1. Package Selling

Basically, at the beginning of the approach phase the relationship is mainly based on

public relations and below the line activities including sending out brochures, collateral and

product information followed by direct marketing activities as the presence on trade shows or

direct electronic marketing. Important to mention hereby is the ability to sell packages of

services rather than one single service, this could possibly include:

Contractual flexibility: in-cooperating a clause making possible a “sale on trial basis”,

such as “product experiences”

Collaboration between Qatar Airways and the VIP service offered by Vienna

International Airport / VIP service at a reduced price. Authorized access to current

lounges, regardless of the booking class

Investigate possibility with Vienna Airport to shift from current Terminal 2 to the newly

built terminal “Skylink” and negotiate access to the new lounges operated by AUA

(“AustrianAviation.net”, 2011).

Make partners offering augmented products to the flight of FFP partners

collecting and redemption of miles possible at Vienna-based hotels

Fixed discount rates for managers of employees showing their staff voucher

Get in negotiation with the city of Vienna: Include sight-seeing packages or dedication

hotel stays from Vienna Tourism or Convention bureau in correspondence with a Qatar

Airways itinerary (Point-of-sale activities, on-sight seminars & targeted marketing

investment) (cited as of J. Cusmano, personal communication, August 16, 2011).

10.2.2. Austro-Arab Chamber of Commerce

Institutions set up by diplomatic and exterior politics related forces can help to

establish routes to attract a certain market segment within a dedicated market environment.

The Austro-Arab Chamber of Commerce has been established in 1989. Based in Vienna, the

non-profit orientated association tries to positively expand on the Austro-Arab economic

relations and therefore emphasizes diversified collaboration in cultural, scientific, commercial

and social issues (M. Khouja, personal communication, December 2, 2011). It intends to

achieve this as “a service agency, a lobbying agent, as the promoter of appropriate events,


commercial and social contacts between two business partner between the two states in

question ” (Statutes of the AACC, 2011, p. 1). Many airlines being active in both markets have

joined the Association as an active member. Among them are Saudi Arabian Airlines, Tunis

Air, Emirates Airlines or EgyptAir (AACC, 2011). Qatar Airways has joined the association

lately. Through contributing to the association’s activities airlines do have the possibility to

enjoy support, mediation and help in any kind to successfully step into the market11

. Mr.

Khouja reports that this can as well include support in avionic issues, for example landing

rights or conflict mediation in issues between the airport and the airline concerned. Services

being of relevance for airlines include as well information about commercial trade conditions

and trends in Austria and the Arab countries (AACC, 2011). “According these supporting

efforts, regular flights between two countries based on air service agreements are definitively a

sign good diplomatic relationships” (M. Khouja, personal communication, December 2, 2011).

So AACC’s work is based on such values of goodwill. While airlines are joining the

association, the strategic goal they want to achieve is to build up business intentions and

approaches to State Organizations and International Organizations to make business customers

of those to strategic and loyal passenger as well in their leisure time. Mr. Khouja explains,

“by focusing more on a high- level customer segment, it may happen that a business partner

one day becomes a private customer. Through other AACC members we try to sensitize the

potential market for the product offered in order to attract attention; this should result in a

positive market environment Our services help to bring the two parties together, on an

economic and diplomatic level. Therefore our chamber is seen as an intermediary for

networking purposes” (M. Khouja, personal communication, December 2, 2011).

Herewith, the importance to partly integrate such associations in an airline’s operations

on new but as well as on established markets becomes evident.

11. Conclusion

One can see that Destination Marketing and Relationship Marketing mainly

originates at a city as such or at its belonging management and may spread into several

11

“Qatar Airways and the AACC both are currently working on the establishment of a ‘Memorandum of

Understanding’ for future collaboration to foster diplomatic relations and trade exchange.” (M. Khouja, personal

communication, December 2, 2011). Furthermore, Qatar Airways helped organizing the latest field trip to Doha

from 10-13 December 2011. At this occasion, Austria opened an embassy in Doha. Delegates and officials was

given the opportunity to experience the airline’s product extensively. This is one of the goals, which wants to be

achieved (AACC, 2011).


directions. This management turns out to be a leading force, many other providers seem to be

dependent on. In contrary, relationship marketing is a process being of core interest for all

instances, as each single instance involved, the International Organizations themselves,

Vienna Airport, a full service network carrier needs to look after its respective “customers”

and “consumers”. IOs possibly are more open to get into business with countries where they

can make sure relationships beyond the business with each other are well developed, namely

on national state level. The political efforts on both sides should be interpreted as an asset

rather than as a liability. Qatar Airways in this regard can take extensive benefit from this

situation. Having amended and analyzed relevant management tools in the relationship

perspective, a coordinated communication between the airline, the airport, and the city of

Vienna is an inevitable issue. Pro-active marketing activities with the different parties

involved may help an airline to reach a premium position in contrast to other competitors. The

recommendations raised should achieve a shift in the airline’s impression of cities in general,

namely from a feeder-destination into its own network towards an agglomeration of

components being of relevance for a strategic market positioning on an O&D basis. Therefore,

the thesis pointed out the importance to evaluate markets in a broader marketing and

macroeconomics related sense. The implemented methods demonstrate a successful strategic

presence on further market segments. Beside, the author emphasized the usage of brands as

valuable strategic assets; let it be with airlines, with foreign states or with the airline’s home

country. Bearing this in mind very probably helps an airline to start-up successfully with this

new business project. If the chance to step into this unrevealed market is taken early enough,

Qatar Airways could be in the position to act as a forerunner serving International

Organizations on a large and sustainbale scale. During this process one could follow the

central theme by Schultz (2000): “The brand is the key to integrated marketing [...] and is the

center of what consumers want“ (p. 55).


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Appendices

Appendix A: Interview, Mr. Cusmano

Sales Manager Austria, Qatar Airways 16 August 2011, Vienna

- Airline Marketing (in relation to QR operations at VIE)

Market Segmentation:

1) As applied in many different lines of business, a market is divided into a few so-called

"market segments" to better focus marketing activities. How far is Qatar Airways addressing

customers of the MICE markets (convention travellers)?

How would you categorize this sub-group of "business customers"?

Answer:

The MICE market in Austria is quite a developed market. But the business tends to go towards

destinations in Europe rather than to destinations in the Far-East. Unless, Qatar is very active

when it comes to convention travel. E.g. The Arab Forum, or large medical convention in

Doha.

If Qatar Airways is the official airline of an event, Qatar Airways creates a so-called “Event-

Profile” to offer the traveller a discount on the published fare, when he/she is registered to take

part at a certain convention.

When it comes to the incentive business: Austrian customers sometimes do send their “top-

employees” or “top-sellers” to destinations in the Far-East (e.g. Maldives, Borneo in

Malaysia) because of motivational reasons. So Qatar Airways is not that much active in

Austria’s event business, because Vienna is being served by a narrow-body aircraft, Airbus

A320, with 144 seats. Upgrades are only done occasionally on short notice after certain

agreements with the head office in Doha.

Convention travellers (independent professionals like lawyers, doctors, etc) are usually staying

3 to 4 days and return then, so it cannot be seen as a dedicated business segment under the

term “business travellers”. Conventions occur every 3-4 years. If this is the case the

participants are travelling by the appointed airline of the convention. Other business travellers


do go with airlines according to the travel policy of their company and tend to have a clear

knowledge about the product they are looking for during traveling.

Business and conventions are not seasonal at all, they may occur at any time of the year. When

it comes to general travel activity, certainly, small declines can be recognized during the

summer holidays in July and August,. In contrast, independent business travellers usually go

with the airline offering the best price.

Brand Strategy:

2) Qatar Airways has been positioned as a 5-star-airline with an award-winning service culture

and amenities offered (e.g. in-flight entertainment, catering,…) How far is this market

segment different from other customer groups served ex Vienna when it comes to value-added

services, pre- or after-flight services? Do you know examples from your job experience at

QR?

Answer:

A majority of leisure travellers is not that much brand conscious and therefore is not that much

quality conscious. Regular business travellers are more wise about what an airline is supposed

to offer. The “Five Star Airline” image makes up a good service at every part of the chain

covering the reservations hotline available in each of the countries Qatar Airways is serving.

The same applies for the user-friendly and fast-acting homepage of Qatar Airways. Priority

Check-in and dedicated booking class services do differentiate the service onboard compared

to competitors. A certain company service-policy indicating highest service standards onboard

guaranteeing being consistent worldwide is applied. In the industry, the service is called to be

the “true-face” of an airline as it represents a point which indeed “makes and breaks the

customers”. The most important point however, which counts for a business customer, is the

network wide hub-connectivity. Leisure customers do not so much care about an optimal

minimum connection time. Usually, they are as well accepting connection times of 2-4 hours.

The lime light is put towards the frequently travelling high-yield business customers to build

up loyality and image:

1.) Five-Star service at competitve fares


2.) Business Class and First Class services in the Premium Terminal in Doha for those two

dedicated classes

Distribution Channels:

3) Very often Executive Secretaries or Corporate Travel Managers are taking decisions at

which departure time, in which travel class, and by which airline the Executive Manager is

going to travel for business purposes. This makes it difficult for airlines to distinguish between

„consumers“ and „customers“. When it comes to travel standards or other requirements,

whome is QR is adressing (consumers or customers)?

Answers:

Travel secretaries in most of the cases do not decide on the classes of travel. The decision on

that is usually taken by travel managers being responsible for the travel policy of the company.

(E.g. “Each employee of our enterprise does travel in economy class, no matter about the

amount of flying hours etc.”) In other cases the class of travel is usually decided by the boss if

no travel policy applies. Then the secretary has the choice over the airline, the time and the

price to choose. In case of the application of travel policies, the travel policy decides on the

respective booking class and about frequency, best elapsed time etc.) How are efforts balance,

to get the travel secretary and the boss both being attracted and interest in the product of an

airline?

Corporate Travel Accounts:

At first instance, Qatar Airways speaks directly to the travel secretary (because they are

usually always in the office), followed up by a seminar about the five star product purely

calling at the business travellers, really using the services (not on the leisure segment), to point

out the services and amenities like the Premium Terminal, the hub- connectivity, the flexible

frequent flyer programme, the onboard service and other details being of relevance for the

business customers. At the next step, the public relations department puts in place a “corporate

agreement”, creating a proposal being handed further on to the travel secretary, the department

manager or the travel manager, whoever is then responsible for the travel policies in

negotiations. In case the agreement is seen to be attractive in the eyes of a customer the so-


called “Full Access Proposal” provides the company with a certain discount rate (as part of

other individual terms & conditions), varying between 10 % and 25 % dependant on the

passenger volume. This rate is then offered regularly to the appointed travel manager at first

instance to be included in a company’s agreement with Qatar Airways.

Who are the travellers, what can we do for him? Is it possible to get them for a quick field trip

to Doha? After having negotiated the contracted successfully, travel managers and travel

secretaries are accompanied to company presentations and inspection visits in Doha lasting

around 3 days over the weekend. During this time the group will be shown around to be

convinced again about the exclusive product.

5) International organizations in Vienna are holding conventions on a regular basis. Would it

be advantageous to set up a certain sales team being responsible for the MICE market in

Vienna?

Answers:

Out of Austria in general, there is a limited organization reason for the appointment of a

dedicated sales team for those market segments. In Austria at least, the corporate market is

very often integrated into the MICE market so no dedicated person is employed for this

market segment. From the side of Qatar Airways, it would not make sense because the

services being offered out of Austria are rather limited in comparison to Lufthansa or Austrian

Airlines.

7.) Passenger Flows:

While about 14,000 people working for international organizations in Vienna are living in the

city or nearby, a huge business potential can be seen from the city’s side (housing market,

purchase power etc). For the rest, there can also be seen a potential for growth of the aviation

industry. (Rough estimation) How many executives of the international organizations has QR

already transported this year (2011)?

Answer:

There is no rough estimation about the percentage of the people attending meetings at

International Organizations using Qatar Airways as a favourite carrier to come here. Because

of the fact that Qatar Airways is carrying about 35.000 passengers a year it would be


logistically impossible to track the reasons for traveling. One need to point out that, a lot of

international people have become locals in Vienna and work for International Organizations.

There is no statistical database which indicates the travel demand for the International

Organizations, unless there is a direct call by the secretary or the travel managers, but this is

not frequently done. Nevertheless, travel statistics from the customer side, the International

Organizations, which are kept confidentially as well, clearly state the travel and flight demand

from their employees.

A lot of the business travellers like to accumulate miles on their business FFP. When they are

going on holidays with their families the can redeem their miles of their business FFP, which

is usually allowed by their employer, the international organizations. A big competitor is the

Miles & More program being so dominate in Austria and within the “Star-Alliance” countries,

which is for sure building up a large amount of loyalty to frequent travellers.

8.)

Pricing Strategy:

"Occupation-related-fares" or "stage-of life-fares" are increasingly being applied by airlines

on short-notice or on contractual basis. Therefore, could it be an option to introduce a

dedicated booking class for diplomats or executives for business travels related to conventions

in Vienna?

Answers:

In general, Qatar Airways works with the following booking classes categories: Tour Operator

Fares– Ethnic Fares – Corporate Fares (only come up with negotiations, negotiated discounts

by the travel managers on published fares offered to the employees).

Every one enjoying these fares falls into a dedicated booking class, being part of the inventory

system based on the yield management. The tour operator fares are based on very low booking

classes enjoying various different calculating low prices.

When talking about the business class negotiated contract, booking classes like “C G D N Z”

(20% in C, maybe he is booked in D, representing a discount on the lowest corporate fare

class) are offered according to the discount rate in percentage you can change the booking

classes accordingly. It depends on the discount rate that is negotiated. Qatar Airways is not

keen to introduce a dedicated booking class for diplomats. Qatar Airways only introduced


diplomatic discounted rates, but no dedicated booking class. If a diplomatic passport is being

shown by the customer at check-in the negotiated discount rate on a diplomatic fare (within a

certain booking class) is being applied.

Lowering the fares is always very carefully done. In terms of pricing it is being benchmarked

against /towards other airlines serving the same routes, where you do know about the product

offered and the market segment served to find a common basis for comparisons. The product

needs to be valued and not underestimated, but the price should always make a difference in

terms of the value of the product (full-service airline) being in the market segment concerned.

Fares are pulled down carefully in steps in the case of specific destinations, which need a

“price support”. The value of the product stands in the forefront. In the end when speaking

about the associated direct operating costs, the hub-and-spoke system is more expensive

compared to direct flights, nevertheless, passengers being conscious about comfort seating,

reasonable flight times and good connections would be happy to spend more on higher rates.

“We are the professionals and want to transfer this message to the customer via the price

levels”. In terms of the direct sales this message is also included in the “selling-teaching-

process” during employee training.

A good example for that is maybe the Route STN-KUL with Air AsiaX (long-haul, low-cost

airline) compared to LHR-KUL, calling at different market segments and perceptions of a

product value.

Customer Value Proposition: What is a customer value proposition versus the customer

service propositions of the competitors? There is a “why” you pay more and there is a “why” a

customer is bypassing a hub. At the end of the day, there is a balance with the customers

flying on direct and customers flying via a hub. There are always positive and negative sides

but in contrast, the hub system is usually more accepted. For sure, you also have to take into

consideration the empty nesters (because you really need to compare the services provided per

price as having a little bit more money to spare for flights) or other related potential customers

appreciated more the service onboard and the shifted, more comfortable flight times.


10.) In many cases FFPs are mentioned when talking about relationship marketing. In your

opinion, would it make sense to introduce dedicated FFPs in terms of MICE travels for

organizations in Vienna (talking account customer loyality and costs for the implementation)?

Answers: (Differences between Biz and Priviledge Club):

QBiz is not an individual programme like other FFPs, as it is set up on behalf of a company

having subscribed to the program on a free-of charge basis. Large companies are served by a

negotiated corporate contract.

A code designator is being created as an ID of the certain company and it is free of charge,

which is called a “QBiz –membership”. This company is given a special amount of miles

being allocated to the QBizprogramme miles account. These miles can be used for

spontaneous add-value products like upgrades or excess-luggage or fee tickets. Companies

have the freedom to pass them onwards to “awarded employees” as a special recognition of

good services in terms of a free flight. In general there is the possibility to redeem more as a

company as whole, but individual travellers can still use their individual Privilege Club Card

to receive miles on their single trips, but in total less compared to the QBizprogramme. As a

special point, some QBiz miles can be used to pay for access luggage on a private trip.

11.) Relationship Marketing is most of the time applied by corporate contracts of important

customers. Evaluating the market in Vienna, do we have a situation comparable to the

"PARETO effect" (80/20 rule), respectively can information be given (rough) about the major

customer groups?

Answer:

Vienna is a high leisure market of 60 %. The rest is a business driven being dominated by the

MICE market and individual business travellers.

12.) The three aspects in which an airline can gain a competitive advantage are in general

Relationship Marketing, Brand Management and the serving of a special target group. Taking

into account the current long-haul market situation in Vienna together with the airlines serving

those routes, how is QR trying to make a difference "to stay out from the crowd", there?

Answer:


There is no collaboration with the Austrian Tourism Board at the moment. “QR is not

promoting Austria within Austria.” Qatar Airways is already working together with other

tourism boards in Thailand, or in the Philippines from time to time. E.g. The destination of

Phuket has been launched last year, so product presentations to some tour operators are made

in collaboration with the respective tourism board. Involvements in the sponsorships of

cultural events, culinary weeks are as well a frequent promotion activity applied frequently.

All in all, it can be said, that those actions are mainly organized from the leisure point of view

and do have nothing in common to activities focused on business travellers.

“Performance – linked – agreements (bonds)”, are being set up with large tour operators like

“TUI” or “DerTour”. A contract is being set up in the beginning of the financial year to agree

upon a special volume for sellable seats. If they go over that, they get a certain (extra) bonus

of “X” euros; therefore there is no need to pay commission payments system applied in the

Austrian market in order to control costs. The regular commission payments (from 3 % up to

9 %) are shifted to the BSP system accounting of IATA, which is applied with electronically

powerhouses. If Expedia or other e-commerce operators sell tickets usually no bonus or

commission payments are paid, unless there is a special agreement with Qatar Airways.

Each individual location has an owner called a “franchisee” “organization umbrella”

(individual IATA-Numbers per travel agent) as RUEFA is the largest tour operator in Austria,

who shares than the revenue made according to sales levels of the partners. Commission

payments are not made in the Austrian market. Both, IATA and the airline can track the

payments made individually to the tour operators.

As another option, agreements with applied tour operator fares are being set up in a

“performance linked bond” – a lump sum of 10,000 Euro (untargeted investments, but a

marketing budget is included) in total is given to them to get them to sell the tickets (they are

negotiating the fares then), but how they are divided the sum up, this is up to them. These so-

called “Market Promotional Costs” keep certain commission payments down.

Exclusive, competitive fairs to a specific destination is also an option in the airline industry,

but companies have to pay for their marketing campaign themselves by covering all the costs

occurring for this campaign, as long as the airline is providing an exclusive fair for the tour

operator’s customers, being specialists in a dedicated geographical area (e.g. exclusive,


temporarily fare as a targeted, agreed campaign for packages to the Maldives for Gulet for

example, which as well is selling capacities to other travel agencies and travel providers as

well to expand the market share).

14.) How is Vienna positioned from a leisure but as well as from a business point of view (e.g.

historic sights, cultural sights, destination of music) within the QR network? How is Vienna

promoted within the QR network?

Answer:

Vienna is being promoted in collaboration with the Austrian Tourism Board at sight, let’s say

in Dubai or in Bahrain. Therefore, the Vienna tourism board is currently doing a targeted point

of sale promotion for the Thailand market. As stated, Qatar Airways is very much keen to

meet promotions actions, so there is a need to seek exterior help from outside e.g. tourism

board as well. If there is a global campaign for Vienna elsewhere in the Qatar Airways

network, they would definitively do so in coordination with head office in Doha. However,

Qatar Airways is currently in negotiations with Austrian Airlines for Code-Sharing

agreements with Qatar Airways in order to get the feeder service more developed into Vienna

from other regional airports in Austria. So the “feeder-service effect” from regional airports

into the QR network is being affected positively.

End of the Interview.


Appendix B: Interview, Mr. Edlinger

Secretary General, Society for Austro Arab Relations, Vienna (30 September 2011)

This interview has been translated from German to English

Question 1 and Question 2:

-“Era Kreisky”:

1.) After having done some research, I was able to reveal, that Bruno Kreisky has only visited

Qatar once at the beginning of the 1980s. What was the reason for this visit at that point in

time?

2.) How about the Republic of Austria’s reputation and image among the Arab States, since

Kreisky has been acting as a mediator?

Answers:

ad 1.) In order to conduct the planned “Fact-Finding-Mission” Mr. Bruno Kreisky has visited

Qatar’s ruler Sheikh Hamad bin Khalifa Al-Thani. Qatar has not yet been acting as a political

key player at this time, but Kreisky had been on search for reliable negotiation partners in

order to come closer to a solution in the Near East – Palestinian conflict.

ad 2.) Basically speaking, today’s political relationship to the State of Qatar are mostly driven

by private economical ambitions. During Kreisky’s time the relations were very much driven

by social-cultural aspects. Since Austria’s most important and largest industries – as the iron

and steel treatment company VOEST – were state owned contact to foreign investors was

rather limited. Relations in other kind were only hold out of political and diplomatic reasons.

Nowadays one has to add, that managers from the independent private company are much

more informed about the economic development in gulf region, than it was the case during

Kreisky’s time. At present, activities on an exterior politics level are naturally based on some-

kind of a “Cost-Benefit-Calculation”; this leads to an increase in closures of embassies and


Honorary Consulates. As well with current politicians on duty, the sense of establishing a

good sustainable economic bindings to Qatar and especially to other states in the gulf region

stands in the lime-light and comes before respectful political and diplomatic deeds. Only

during Kreisky’s time as Austria’s exterior minister, the Arab style of politics was of interest

for the Republic of Austria’s worldwide acting.

- International Future Development of the Gulf States:

Question 3:

3.) In which position would you see the potential of the gulf states in 10 years time? Would

you personally see the gulf –states in a role as a financial key-player in the region, as a

generous investor or as one of the most important supplier of fossil fuels, oil and gas, for the

western civilized world?

Answers:

ad 3.) At the current situation, the supply of oil and gas stands in the lime-light of all efforts,

describing the task of those states. Meanwhile the states would like to get their image shifted

from an “oil supplier” towards a reliable partner for European know-how in service and

engineering. This is done to establish itself as a “business hub” for the Arab region. The

investment into large real estate projects has mostly become evident in the cases of Dubai and

Doha. Beside investments into constructions, other investments in the financial sector on the

Dubai or Doha Stock Exchange should be fostered in the near future. Summarized, it is all

about the seeking for survival strategies and other principals sources of income after the

production of crude petroleum.

- Relationship Austria-Qatar:

Questions 4& 5:

4.) After further research into the topic, one can say, that the diplomatic relations between

Austria and Qatar are still relatively young, due to Qatar’s late independency in 1971. In the

situation of Qatar as well, would you say that those are still based on economic expansion

plans on both sides (OMV, RasGas, QatarGas, etc,…)?


5.) The State of Qatar under the leadership of the current Sheikh starts to become a heavy

player in conducting conferences and conventions on arab-related issues. By doing so Qatar is

acting as a mediating force in this region. How would you assess Qatar’s role within the gulf

region in comparison to other (larger) states located there?

Answers:

ad 4.) + ad 5.) Here it can be said as well, that Qatar has created worldwide attention through it

impressive demographic and economic facts & figures. It has done so namely by the fact that

it is the richest country in the world according to its high GDP earning / citizen and by being a

small country being blessed with a huge economical potential. At this stage, it needs to be

mentioned that the ruler family “Al-Thani” uses these favourable conditions to make a

difference at the world-political stage. The increase in shares in large companies and the

corresponding profits earned are used to invest in local culture, in education on sight and in

international events. The re-investment strategy of money earned abroad and putting it into

local issues is part of the ruler’s political master plan. Doha is therefore a little bit comparable

to Dubai. In addition, I would simply call it a battle between those cities, by constantly

keeping an eye on each other. Nevertheless Qatar is doing better in this strategy. While

Dubai’s image is only based on successful artificial marketing product image reasoned by

mega projects; Qatar meanwhile has much more basic income on its national disposal, without

enjoying income from any primary production. This is where Qatar can act as an archetype

against other in the region.

In fact, Qatar is undergoing a vital and pro-active role on a local and international level, to

make it possible to establish Doha as a neutral place for theme-sensible conferences, without

living discrimination between two peoples. The State of Qatar enjoys a paradigmatic

development, which is very seldom in this area. Unfortunately this kind of Qatar’s internal

reformation is much too under-appreciated by states in Asia and by Westerns. Supplementary,

Qatar’s vision includes the organizations and mediations of the gulf area’s national issues in

Doha. While other states like Saudi-Arabia or the United Arab Areas are neglecting those

issues, due to their worldwide mastery; Qatar is taking the initiative at its own stewardship. In

order to close this question, Sheikh Zayed who has founded the United Arab Emirates at the

beginning of the 1970s, once said one important sentence at a conference: ‘We as small


countries, being blessed with wealth resulting of oil discoveries in our areas, should use our

potential to support our worse off neighbors and friends in the region by as well stopping the

diversification to reduce social instability’.

6.) Now by comparing the situation during the Era Kreisky with the current one. From the

Austrian point of view, what is the Republic’s set towards the Arab world today?

Answer:

ad 6.) General contacts and interactions have been smoothed out to a minimum level, which is

reasoned by a weaker knowledgeable opinion by Austria together with a leak in professional

appraisal on a national level in regard to the situation down there. At the other side of the

spectrum, Kreisky was gifted by numerous personal contact forming a pride network of Arab

leaders. Given this fact, Kreisky brought along a deep interest in the region as well as a broad

knowledge in historic facts. His ultimate goal was to find a way for establishing fair conditions

for a constructive dialogue between the parties involved.

Because of the fact that many of the Arab countries have been heteronomous for decades,

local people are asking for change right now. While Kreisky would have understood the

present development in the Arab region, today’s European politicians only follow a way of re-

active crisis management on diplomatic level rather than getting active with regard to

historical circumstances and data. Because of this occasionally happening failure in

knowledge, former valuable diplomatic relationships between Europe or Austria and the Arab

states, which would be very important to re-activate joint partnerships, are simply neglected or

forgotten in the archives.

End of the interview


Appendix C: Interview Mr. Khouja

Secretary General, Austro-Arab Chamber of Commerce, 2 December 2011

This interview has been translated from German to English.

- Diplomatic Relationships with the State of Qatar:

1.) Focusing again on diplomatic relationships: From your point of view, how would you

comment on the differences in the relationships between Austria and the Arab States during

the “Era Kreisky” compared to today’s diplomatic relations? Would you qualify them in a

different way? According to your prediction are Kreisky’s former politics still influencing

Austria’s image towards the Arab countries?

Answer Question 1:

ad 1.) Generally speaking, in my function as general secretary of the AACC my area of

responsibility mainly focuses on the economical performances between Austria and the Arab

region. Therefore, I can’t expand too much on this point. Meanwhile it can be said, that

Kreisky’s ambitions have been based on other values and targets than economic related ones,

namely on personal interest and hard political negotiations. In this regard, I am convinced that

Kreisky’s activities in former times still affect the economic relationships between Austria and

countries in this region in a positive sense. Specifically Qatar enjoys a quick and efficient

growth in its economics and turned out to be a ‘political key-player’ in this region.

Unfortunately, from the side of the AACC, I can’t provide you with more detailed information

on that.

- Economic Relationships:

2.) From the Austrian point of view: Import / Export figures to and from the Arab region have

been increasing steadily over the last decade, especially when talking about the economically

strong gulf states. According to the latest report on exterior and political issues, imports of

Qatari “goods” have risen by 103 % up to 3.043 Million Euros, whereas Austria’s exports

have declined by 13.80 % to 71,970 Mio Euro in 2010 compared to the figures in the year

2009. What’s your opinion on this development, and how would you assess the general

economic situation in Qatar? Would you be able to provide me with some up-to-date figures

concerning imports/exports to the relevant countries?


3.) As a rough estimation, do you know how many Austrian firms are currently holding

branches in Doha/Qatar? For which lines of business in Austria is the positive development of

Qatar’s economy of real relevance?

Answers Question 2 & 3:

ad 2.)

In addition to your figures raised I can tell you that the trade volume has even increased since

then. From 2006 to 2010 both countries faced a trade volume (sum of import and export) of

405 Mio Euros. In the year of 2011 alone, the volume will make up around 100 Mio Euros, in

2010 it was a slower growth over only 60 Mio Euros due to the aftermath of the financial

crisis. For the years 2008 and 2007 the figures are 180 Mio Euros and 140 Mio Euros

respectively. Hereby Austria is exporting goods from the pharmaceutical and engineering

sector. In contrast Qatar is exporting mainly fossil fuel products followed by agricultural

products to Austria. Until a few years ago the State of Qatar still hold an own embassy in

Vienna in order to serve its citizens with all the formality necessary when coming here for

special medical treatment.

ad 3.)

At present there are around 50 Austrian firms being currently active in the State of Qatar due

to economical reasons. This includes firms from the construction, the grocery and as well from

the financial business, and partly out of the health line of business. In regard with the

upcoming soccer world cup in 2022 the increase in interested firms (e.g. STRABAG) to

establish branches in Qatar will even increase. Economic relations will be intensified. Many

firms in Austria are specified in infrastructure projects, where Qatar can surely take benefit

from.

- Austro-Arab Chamber of Commerce:

4.) Qatar Airways is one of the “youngest members” having joined the AACC just lately.

What is the mission / vision of your association and what benefits do take companies from the


membership in your organization? What can airlines contribute to a successfully acting

AACC?

5.) Many other airlines such as Tunis Air, Saudi Arabian, or Emirates are as well members of

the AACC. In this regard, do airlines through this hope for better business relations, presence

and share on a corporate contract level on the Austrian market?

Answers Questions 4 & 5:

ad 4.) + ad 5.)

Yes, you’re absolutely right. Airlines in general are much interest in the work of the AACC.

The chamber of commerce’s mission is to strengthen relationships in an economical, social,

scientific and cultural sense (see statutes as well). So, we help at national legal issues when

there is the intention to open embassies or honorary consulates in Vienna. Furthermore, the

AACC work is based on three pillars: “Service”, “Information” and “Networking” in order to

help companies to establish a solid base on the Austrian market. In addition, a support in the

area of legislation and translation of trade documents is provided.

Regarding Qatar Airways support is provided with trade and economical information on trade

volumes, help as mediating force in possible (hopefully not) occurring disputes between the

airport or other parties, including diplomatic landing right issues or general slot issues.

Through other AACC members we try to sensitize the potential market for product offered in

order to attract attention; this should result in a positive market environment. At present, the

AACC is planning to ratify a memorandum of understanding together with Qatar Airways

soon in order to establish business relationships between official institutions like the Republic

of Austria, the Austrian Federal Economic Chamber, and others. So, at the upcoming

delegation visit to Qatar at the beginning of December members of the Austro-Arab Chamber

of Commerce, Austria’s Federal President, member of the Austrian Federal Economic

Chamber and of some state secretaries will join and fly onboard Qatar Airways for the first

time.


6.) Do you think that especially airlines (let it be Qatar Airways, Emirates or Etihad Airways)

can use their image to link and influence positively the relationship between two states, on an

economic as well as on a diplomatic level?

Answer question 6:

ad 6.)

Absolutely, having an airline flying between Austria and its home-country can be primarily

seen as a sign of well-established underlying political relationships with the airline’s home

country. This is as well true seeing it the other way round. A good political athmosphere and

economic collaboration is a well a fact, airlines can influence up to a certain extent and even

more important, by their willingness to conduct a certain service between two cities; by seeing

potential for future growth. And it is as the quality of the product offered by the airline, which

provides a positive non-verbal signage of respect to the country it is flying to.

7.) As a side question, I would like to get to know, if some of the International Organizations

based in Vienna do play a vital role at all in their membership at the AACC (if they are),

respectively if there could exist a link between business relationships between Austria and

some of the Arab states being members at International Organizations based in Vienna.? Does

this also influence your work?

Answer Question 7:

ad 7.)

Yes, International Organizations play a major role in the work of the AACC. Through

lobbying at state institutions and at official institutions a vital co-operation with those

organizations is given. Especially through the network, the AACC is working on enquiries by

International Organizations at travel issues or important summits (e.g. the OPEC or UNO).

These can be directly forwarded to the respective partner. In many cases, we even bring

AACC member organizations together for successful business. With airlines this means, that

we even build up business intentions between the airline and the International Organization.

The sense behind is a strategic partnership. This would mean that at any point in time in future

business customers working for International Organizations can become leisure customers,

and therefore can lead to a win-win situation for both parties involved. To foster this in a


practical example the AACC is working together with Qatar Airways on an interactive

booking platform to create an interface between the airline(s) and other AACC members in

order to inform them about latest offers and as well about the product offered and potential

corporate partnerships. By doing so, the collaboration between members should be enhanced

as well.

End of the interview

Appendix D: Total number of convention days and total number of participants (2008)

Organization Convention days Number of

participants

UN/UNODC 540 15,880

UNIDO 51 2,214

CTBTO 146 2,437

IAEA 3,372 13,655

OSCE 210 52,000

Others 1,104 11,920

Source: “Ernst&Young”, 2009, p. 27 (own illustration)


Appendix E: Employee Categories at International Organizations

“Ernst&Young”, 2009, p. 14 (own illustration)

0

200

400

600

800

1000

1200

UN/UNODC UNIDO CTBTO OSCE

45 18 12 7

1117

320 244

156

1164

581

368

188

Executive Diplomats

Diplomats & Other Executives

Office Staff


Appendix F: Participants’ Annual Contribution to Austria’s GDP

Source: “Ernst&Young”, 2009, p. 30


Appendix G: Expenditures of Employees at IAEA (in M. €)

Source: “Ernst&Young”, 2009, p. 19


Appendix H: Number of Staff (2008) & Disposable Salary (€)

Source: “Ernst&Young”, 2009, p.18


Appendix I: Air Transport Value Chain

Source: Vogel, 2010, p. 36


Appendix K: Inbound and Outbound Wave Pattern, Qatar Airways, Doha

Source: Anna.Aero, 2011


Source: Anna.Aero, 2011


Appendix L: Official Statement on new Air Service Agreement

Source: Federal Ministry of European and Foreign Affaires, 2011


Appendix M: Scheduled Total Route Traffic on Qatar Airways (Vienna-Doha)


Appendix: N: Scheduled Final Destination Traffic on Qatar Airways (Vienna-Doha)


9106

16859

24783

39757 37476

34032

40348

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

2004 2005 2006 2007 2008 2009 2010

8824

16695

24783

33521

10819 8646 9502

0

5000

10000

15000

20000

25000

30000

35000

40000

2004 2005 2006 2007 2008 2009 2010


Appendix O: Scheduled Final Destination Traffic on All airlines (Vienna-Doha)


Appendix P: Inbound/Outbound Traffic on Qatar Airways, Vienna-Doha


665 965 1014 1075

9067

16908

25147

33948

11408 9136 10045

0

5000

10000

15000

20000

25000

30000

35000

40000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

24,783

39,757

37,476 34,032

40,348

25,134

39,029 39,220

35,656

40,637

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2006 2007 2008 2009 2010

(QR) VIE-DOH

(QR) DOH-VIE


Appendix Q: Delegates Attending a Professional Association Conference

Source: Horner & Swarbrooke, 2001, p. 38


Appendix R: United Nations Quarterly Travel Report

Source: United Nations Secretariat (ST/IC/2001/43/Amend.1), 2005, p. 2


Appendix S: United Nations Form for Exception at Air Travel Occasions

Source: United Nations Secretariat (ST/IC/2001/43/Add.1), 2002, p. 2


Appendix T: Ascend Corporate Travel Survey

Source: Ascend, 2011, p. 7


Appendix U: Total Product Concept

Source: Baker et al., 2003, pp. 78-83 (adopted and amended by author)


Appendix V: Customer Typology

Source: Faltermaier, 2010, p. 27 (adopted and amended by author)


Appendix W: Customer Management Tools

Source: Georgi, in Bruhn, M., Homburg, C. (Ed.), 2005, p. 243

(adopted and amended by author)


Appendix X: Transactional versus Strategic Business Relationships

Source: Johnston & Clark, 2008, p. 95


Appendix Y: “Flight Product Experience Diagram”

Source: Geisselhofer, 2011 (own illustration)


Appendix Z: Customer Lifetime Cycle

Source: Siebert, in M. Bruhn, C. Homburg, (Ed.), 2005, p. 451

(adopted and amended by author)


Appendix A 1: Planning Strategy to Market Destinations

Source: Bieger, 2005, p. 285


Appendix B 1: Passenger Growth Figures in the Middle East

Source: Boston Consulting Group, 2011, p.4

Appendix C 1: Profitability of Middle Eastern / European Destinations

Source: Boston Consulting Group, 2011, p. 7


Appendix D 1: Integrated Marketing Communication Process

Source: Schultz & Kitchen, 2000, p. 77


Appendix E 1: “Marketing Communication Process”

Source: Geisselhofer, F., 2011 (own illustration)


Appendix F 1: The Four Key Elements of the Organization

Source: Schultz & Kitchen, 2000, p. 57 (adopted and amended by author)


Declaration of Authenticity