ABSTRACT

Airlines are taking steps to transform their brand images and operations from mere providers of a commodity product or means to an end into entities providing timely and alluring travel services throughout the customer experience. One of the biggest challenges for airlines with the introduction of branded products and ancillary services is the need to ensure consistency in the sales process across all channels and customer points of contact. Each contact point with the customer must communicate the value of the product and address three components: core product, ancillary services and delivery process. Ancillary revenue activities include commissions earned by passenger carriers on the sale of hotel accommodations, car rentals and travel insurance, and other travel items such as tours and transfers. The chapter looks at each of the different distribution elements in the rapidly changing context provided by the internet.