CAPA has forecasted that airlines worldwide are expected to generate USD58 billion in ancillaries this year, or 12% of the airlines’ global revenue.
“The airline industry is showing signs of recovery, with Abacus seeing a 30 per cent increase in booking volumes during the period of January to May this year, compared to the same time in 2009. Of this increase, there is strong demand for LCC flight bookings. Savvy network carriers that understand the revenue generation potential of unbundled services, would
capitalise on the upward booking trend to harness the extra revenue opportunities presented by all their distribution channels,” said Mr Henry.
He continued, “Airlines unbundling their services also allow travel agents to elevate their business offerings by being creative in their packaging of products and services for their customers. They can customise each offering to meet customers’ specific needs, thereby providing further value-add and creating that competitive difference.”
Mr. Thomas Chong, Managing Director of Holiday Tours & Travel Sdn. Bhd. said that with this new system, the travel agency is able to broaden its offerings to travelers.
“From a travel agency’s perspective, we can benefit from increased productivity as the new system captures relevant information on seat price, meal description and baggage allowance on one screen instead of having to toggle multiple screens. In addition, the ‘real-time’ seat reservation and booking of ancillary items allows completion in one single transaction.”
Mr. Hansa Sukmunkongsamer, Managing Director of Paradise & Sun Travel Co. Ltd. said, “Transparency is vital. With Abacus’ system, travel agents can break down clearly the individual costs, for example ancillary fees, taxes and surcharges, so customers can see exactly what they are paying for. This takes away any ambiguity over the fares quoted which in turn reduces customers’ queries. That ultimately allows us to close the sale quicker.”
Mr. Sukmunkongsamer continued, “The beauty of the new system is that my travel agents have more time to attend to servicing our customers. In our long-standing partnership with Abacus, we continue to be impressed by the team’s passion and dedication. Abacus recognises our challenges and addresses our needs with innovative world-class solutions.”