CHAPTER 2: THE MARKET FOR AIR TRANSPORT SERVICES. What Business Are We In? TRANSPORTATION COMMUNICATION LEISURE LOGISTIC INFORMATION SELLING SERVICES. Do you think transportation is important for social need and why?. What kind of transportation we have now?. - PowerPoint PPT Presentation
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CHAPTER 2:THE MARKET FOR AIR TRANSPORT SERVICESWhat Business Are
We In?
TRANSPORTATIONCOMMUNICATIONLEISURELOGISTICINFORMATIONSELLING
SERVICES
Do you think transportation is important for social need and
why?What kind of transportation we have now?
THE MARKET FOR AIR TRANSPORT SERVICES
What Business Are We In?
TransportationLong haulShort haulDoor 2 doorSpecial
serviceetc
CHAPTER 2:THE MARKET FOR AIR TRANSPORT SERVICESWhat Business Are
We In?
TRANSPORTATIONCOMMUNICATIONLEISURELOGISTICINFORMATIONSELLING
SERVICES
Example of communication we have now?Telephone,Internet,Video
conferenceetc
THE MARKET FOR AIR TRANSPORT SERVICES
What Business Are We In?
b) Communication
- face to face meetingurgent business deal day trip
Business Competitor?
CHAPTER 2:THE MARKET FOR AIR TRANSPORT SERVICESWhat Business Are
We In?
TRANSPORTATIONCOMMUNICATIONLEISURELOGISTICINFORMATIONSELLING
SERVICES
THE MARKET FOR AIR TRANSPORT SERVICES
What Business Are We In?
c) Leisure & holidaycustomers disposable income disposable
timeleisure holidaysLeisure activities
CHAPTER 2:THE MARKET FOR AIR TRANSPORT SERVICESWhat Business Are
We In?
TRANSPORTATIONCOMMUNICATIONLEISURELOGISTICINFORMATIONSELLING
SERVICES
THE MARKET FOR AIR TRANSPORT SERVICES
What Business Are We In?
d) Logistics
Air freight- fast transportation of goods - meeting dateline any
ideas.
CHAPTER 2:THE MARKET FOR AIR TRANSPORT SERVICESWhat Business Are
We In?
TRANSPORTATIONCOMMUNICATIONLEISURELOGISTICINFORMATIONSELLING
SERVICES
THE MARKET FOR AIR TRANSPORT SERVICES
What Business Are We In?
e) Information - moving urgent documents - transportation of
news
Docs, items, samples, products
CHAPTER 2:THE MARKET FOR AIR TRANSPORT SERVICESWhat Business Are
We In?
TRANSPORTATIONCOMMUNICATIONLEISURELOGISTICINFORMATIONSELLING
SERVICES
THE MARKET FOR AIR TRANSPORT SERVICES
What Business Are We In?
f) Selling services
Airport ManagementGround HandlingTHE MARKET FOR AIR TRANSPORT
SERVICES
What Business Are We In?
f) Selling services
CateringIn-flight EntertainmentTHE MARKET FOR AIR TRANSPORT
SERVICES
What Business Are We In?
f) Selling services
Engineering
Piloting
THE MARKET FOR AIR TRANSPORT SERVICES
What Business Are We In?
f) Selling services
Cabin servicesReservation/ticketing
THE MARKET FOR AIR TRANSPORT SERVICES
What Business Are We In?
f) Selling services
Duty Free Shops
Dubai airportChapter 2:The Market of Air Transport ServicesWho
Are The Consumer and Customers?Market Segmentation?
Who Are The Consumer and Customers?
THE AIRLINE CUSTOMERS
The Consumers --- ARE THOSE PEOPLE WHO ACTUALLY TRAVEL
The Customers --- They Are The Decision Makers
CHAPTER 2: 4 CUSTOMER DECISION WHICH MUST BE ANALYSEDCHAPTER
2:UNDERSTAND THE AIRLINE MARKETThe general customer need
Industrial buying behavior
The customers in the business air travel marketLeisure &
Holiday Travel Market
Customers - Air Freight Market
CHAPTER 2: The General Customers Needs
UNDERSTANDING THE AIRLINE MARKET
The General Customers Needs
The General Customers Needs
The General Customers Needs
The General Customers NeedsCHAPTER 2:UNDERSTAND THE AIRLINE
MARKETThe general customer need
Industrial buying behavior
The customers in the business air travel marketLeisure &
Holiday Travel Market
Customers - Air Freight Market
CHAPTER 2:UNDERSTAND AIRLINE MARKETING 2.Industrial Buying
Behavior DMU(decision Making Unit)
Decider GatekeeperUser BuyerInfluencer
Industrial Buying Behavior DMU (decision Making Unit)
Decider - he makes the final decision: owner, CEO, Senior
Manager, Gatekeeper those people who control the flow of
information into decision-unit. e.g.: PA protect their Boss from
times wasting visit, unwelcome sales people.User those people who
use the product or service, concern about quality , costBuyer
negotiate to get the best deal, expect reward from savings
Influencer those people who dont use a product, but who
influence the final outcome-e. g: government, civil,-Please read
page:12-14 CHAPTER 2:UNDERSTAND THE AIRLINE MARKETThe general
customer need
Industrial buying behavior
The customers in the business air travel marketLeisure &
Holiday Travel MarketCustomers - Air Freight Market
3. The Customers in the Business Air Travel Market
Secretaries who makes bookings for their bosses understand the
bosses requirements,Travel agents 80% of bookings,Corporate Travel
Manager special taskCustomers who provide feedback
Please read page 15-17
CHAPTER 2:UNDERSTAND THE AIRLINE MARKETINGCHAPTER 2:UNDERSTAND
THE AIRLINE MARKETThe general customer need
Industrial buying behavior
The customers in the business air travel marketLeisure &
Holiday Travel MarketCustomers - Air Freight Market
CHAPTER 2:UNDERSTAND THE AIRLINE MARKETING4. Leisure &
Holiday Travel Market
A) Their Concerned ~Is there other/better mode of travel
~Service and quality Challenges from surface & ground
transportB) Children facilities for children & babies ~women
UK, well plan programC)Travel agent ~ provide package, visa
etcD)Tour operators ~ organizes travel in groupsE)Consolidators
~bucket shops, block seats to sell on discount
CHAPTER 2:UNDERSTAND THE AIRLINE MARKETThe general customer
need
Industrial buying behavior
The customers in the business air travel marketLeisure &
Holiday Travel MarketCustomers - Air Freight Market
5. Customers - Air Freight Market
The Freight Forwarders 90% of businessb)The Senior Management of
Freight Forwarders decides on the airlines carrierThe forwarders
clerks-decides on the emergency shipment and at late nightThe
integrator-a complete-services, door to door, FedEx, ups
CHAPTER 2:UNDERSTAND THE AIRLINE MARKETINGWhat are the different
between LCC compare with the other commercial
Airlines??Exercise!!What is the Low cost carrier?What is
characteristic?What LCC do and DO not do?Definition 1:
~~A market segment is a subgroup of people or organizations
sharing one or more characteristics that cause them to have similar
product needs~~CHAPTER 2:MARKET SEGMENTATION
CHAPTER 2:MARKET SEGMENTATION
The Air Passenger MarketAir Freight MarketSelection of Airline
The Air Passenger Market
a) Journey Purpose -
b)Length of Journey- c) Country/Culture of Origin of
Traveler-
CHAPTER 2:MARKET SEGMENTATIONMARKET SEGMENTATION
1. The Air Passenger Market
a) Journey Purpose
- Pilgrim visits: Mecca, India, Malaysia- Corporate business
travel; services is important- Independent business travel: cost
factor is important
MARKET SEGMENTATION
1. The Air Passenger Market - cont
a)Journey Purpose-cont
- Leisure holiday: high disposable income to cover accommodation
and meals- Leisure travel visiting relatives: lower disposable
income
The Air Passenger Market
a) Journey Purpose -
b)Length of Journey- c) Country/Culture of Origin of
Traveler-
CHAPTER 2:MARKET SEGMENTATION
MARKET SEGMENTATION
1. The Air Passenger Market - cont
b)Length of Journey
- Short-haul-route: flight time less than an hour, airport
location and service, frequency and timing seats
accessibility/ticket flexibility
MARKET SEGMENTATION
1. The Air Passenger Market - cont
b)Length of Journey
-Long-haul-route: flight time more than an hour, in-flight
experience and service, seating comfort, food,
The Air Passenger Market
a) Journey Purpose -
b)Length of Journey- c) Country/Culture of Origin of
Traveler-
CHAPTER 2:MARKET SEGMENTATIONMARKET SEGMENTATION
1. The Air Passenger Market -
Country/Culture of Origin of Traveler
- seating comfort, European vs. Eastern traveler- food for
Muslim and non-Muslim
CHAPTER 2:MARKET SEGMENTATION
The Air Passenger MarketAir Freight MarketSelection of
AirlineMARKET SEGMENTATION
2. Air Freight Market
Emergency traffic: - fast delivery of goods, door-to-door -
operating emergency; emergency parts for oil company or ship spare
parts - marketing emergency; suppliers meeting deadline, to service
dissatisfied customers
Perishability: good with short life span
By Type of Services
1st class/Buss Class - Corporate policy - Decision makers -
Advantages & services
CHAPTER 2:MARKET SEGMENTATION
The Air Passenger MarketAir Freight MarketSelection of Airline3.
Selection of Airline
a) Business Traveler corporate policyb) Leisure traveler tour
operatorsMARKET SEGMENTATION
Summary chapter 2:~~The market for air transport services.~~
~~Consumer and customer definition~~
~~ Understand the airline market~~ ~~ Market segmentation~~
EXERCISE!!!!Please explain the 2 market of air transport
services and give your own example.Please state 3 ways how can you
improve the market of air transport service?An airline has
implemented the type of service which 1st, economic and buss class.
As the customer, which one you prefer and explain why.Please
explain the definition of Consumer and Customer.As a customer, what
are your general needs which an airline need to pay attention?As
the airline industry operator, you must know the air passenger
Market. Please explain 3 kind of the air passenger market.
