THE FUNDAMENTALS OF ROUTE DEVELOPMENT MARKETING TO AIRLINES AND THE “PERFECT” PRESENTATION MODULE 10
S MODULE 10 AIRLINE FEEDBACK asm-global.com
AIRLINE FEEDBACKS MODULE 10 “We gather much of the airline -related data (e.g. pax profiles by route, airline schedules) from our own sources and don't necessarily need them from airports”. “A profit/loss assessment is least important because the airline will calculate this on its own, using internal data; the airport or consultant's data will not be as accurate, so it's better for the airport to focus on and share other data about its market that is not generally available to the airline route planner.” “Legal aspects of international operations, e.g. intergovernmental air traffic agreements”. “The key consideration is airport needs to make a case on traffic segmentation to ensure viable service vis a vis airline competitiveness and positioning ”. “Information about leakage and transfer versus point to point very useful”. asm-global.com
AIRLINE FEEDBACKS MODULE 10 “When an airport proposes a new route to a city that is not one of the airline's hubs, it usually means they have not done their homework”. “A crystal clear understanding of our business is not required, but should be inherent in the nature of business proposals - i.e. do not suggest something which based on information reasonably available to the public would not be in scope.” “Knowing if there are marketing/advertising/incentive funds available to support new routes (how much and in what form) is helpful”. “Information about leakage and transfer versus point to point very useful”. asm-global.com
AIRLINE FEEDBACKS MODULE 10 “Airports need to understand better airlines' different business models and suitability to the routes they are proposing”. “Continue to approach in a collaborative effort along with ways in minimize startup costs” “For full service airlines seeking to attract corporate passengers, a partnership with the local business community and attendance at some Routes events could be interesting for airlines”. “Route analysis with proposed schedule, economics of the flight, incentives scheme, contact of local tourism organizations and big corporates, and legal study of the route”. “Work as a destination rather than individual entities in a location”. “Better understanding of what the Airline's Network Strategy is to be able to present clearly what will attract the airlines attention”. “Identify opportunities to reduce airport costs for “Information about leakage and transfer versus point to point very useful”. asm-global.com airlines and customers”.
AIRLINE FEEDBACKS MODULE 10 Airline Survey: If Route development were perfect what would it look like? “A positive outcome (meaning profits) for every new route, with honest and open “It would be fully in sync with what airlines are seeking to collaboration along the way”. do”. “A detailed accurate set of numbers in a business case covering all risks to airline should a new route be introduced”. “Tourism would fund 50% of route marketing, airport charges are abolished and instead airport drives revenues from non aeronautical revenues”. “More balanced profits for both airports and airlines”. “Increased willingness to participate in the financial risk of launching and successfully maintaining a new route”. “Airports need to understand the small profit margins airlines obtain and how these margins are placed under severe pressure with a slight increase in costs” . “Understand our priorities - ideally get a pretty good idea from publicly available sources/consultants. Reach out to us in advance for quick pointers on our priorities pre-meeting. Present clear succinct information to us. We need sustainable long term cost base which includes certainty from our airport partners and rewards ongoing growth with declining year on year costs”. “Identify opportunities to reduce airport costs for “Information about leakage and transfer versus point to point very useful”. asm-global.com airlines and customers”.
S MODULE 10 “ Perfect Presentations ” Are about… asm-global.com
“PERFECT PRESENTATIONS” MODULE 10 Numbers asm-global.com
TRAFFIC FORECAST MODULE 10 Example illustrates the depth of detail airline will want to see. Network carriers consider the breakdown by segment type. For point to point carriers can focus on local traffic only. Airlines will do their own forecast, but this gives the pitch credibility and demonstrates that a scientific approach has been taken to show that the opportunity is viable. Beyond/Behind Passenger Forecast Detail relevant for network carriers. Statement about strength of forecast and view of resultant market share. If perceived weakness relative to other choices then mitigation measures need to follow. asm-global.com
MARKET SIZE DATA MODULE 10 • How big is the market today? • Which airlines are carrying the traffic? • How much is direct vs. indirect? • Through which hubs are indirect passengers connecting? asm-global.com
MARKET SIZE COMPARATORS MODULE 10 • What are our largest unserved markets • What are the largest unserved markets for our target airline asm-global.com
AVERAGE FARE COMPARATORS MODULE 10 • How do the average fares in our market stack up against others in the region, and others in the airlines’ network? asm-global.com
INCENTIVES AND TRAFFIC DELIVERY MODULE 10 Address how route will be supported to ensure traffic and if necessary to move opportunity up the ranking of choices for the airline Marketing plans Stakeholder support Outbound/Inbound/Connectivity traffic driving plans Yield improvement plans, through high value passenger customer engagement Corporate sales brokering Route incentive programmes asm-global.com
“PERFECT PRESENTATIONS” MODULE 10 Listening asm-global.com
Q & A/ SALES DISCUSSION WITH AIRLINES MODULE 10 Example questions: - How does the opportunity sounds to you? - What would it need to look like to be seriously considered? - What needs to be done next to move the opportunity forward? Establish objections (reasons why they wouldn’t operate the route) - E.g. low yield. Counter through examples, comparison stories, or agree to revert back post meeting. Establish obstacles (reasons why they can’t operate the route) - E.g. bi-lateral restriction. Agree action plan to address and revert back post-meeting. Agree position with airline assuming obstacles are removed in the future. - Ask for agreement of next steps. How can this opportunity be moved forward? asm-global.com
“PERFECT PRESENTATIONS” MODULE 10 Conciseness asm-global.com
“PERFECT PRESENTATIONS” MODULE 10 Being remembered asm-global.com
APPENDIX MODULE 10 Support Information To answer questions, not to be presented asm-global.com
APPENDIX MODULE 10 Catchment Size Airlines take little notice of catchment since most airports overstate it. Include ONLY if needed to illustrate that current traffic is understated due to leakage, as airlines use traffic data to assess market size, not catchment. If being shown, needs to be realistic and consist of population for whom our airport is the most accessible for travel to their destination. Catchment areas can vary by destination depending on the routes served by competing airports in the region. Show catchment area as it relates to the airline/route being targeted. Compare to catchment areas of competing airports asm-global.com
APPENDIX MODULE 10 Catchment Characteristics Key information about the strength of the catchment, for example: • GDP Growth/Economic Performance/Investment information • Hotel stock/development information • Diaspora information • Corporate information if relevant: e.g. Fortune 500 companies in the area with travel requirements relevant to the airline asm-global.com
APPENDIX MODULE 10 Current Air Service Network Background Information Only Include ONLY if airport is not known to the airline. Provides airline with some perspective about the destination's potential Identifies for the airline if there is existing service to markets that are comparable to their home market. Identifies for the airline a potential connecting network that they could access. asm-global.com
APPENDIX MODULE 10 Point of Origin and Purpose of Trip Info Purpose of Point of Trip Origin T ourism Airline’s Home XX % Business Market XX% Our Market XX % XX% 8% VFR XX % Provides insight into yield potential, and level of tour Useful to an airline to know if this airport is primarily operator involvement required. a destination vs. origin market. asm-global.com
APPENDIX MODULE 10 Fees and charges Key is comparison with alternate choices for airline Compare airport fees and charges with competitors for proposed aircraft asm-global.com
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