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If there is one component of travel in Asia which
has grabbed attention relentlessly throughout 2006, it
has to be the low-cost carrier segment.
If on one hand, the penetrative levels
of LCC's have forced the traditional airlines to restructure their
operations and address cost issues, on the other
LCC's have also contributed immensely towards the
revival of the region's tourism figures.
Even as LCC's gain praise from several
quarters, it was EyeforTravel's Travel
Distribution Summit Asia in Singapore this year
which set the ball rolling with some engaging comments
and insights from senior distribution executives from
British Airways and Jetstar Asia.
Speaking during this summit Mark
Pavlides, GM Distribution Asia Pacific, British
Airways stated: "There is a
situation where both successful traditional and
successful low cost carriers are able to co-exist. This
is what has happened in Europe - growth of LCC's have
encouraged traditional airlines to look at their costs
and also their customer offering. LCC's have so far been
unable to compete for all the customers the traditional
carriers offer and likewise the traditional carriers
cannot compete for all the LCC's customers."
On his part, Paul Daff, Head of Commercial,
Jetstar Asia Airways and Valuair, during the same
conference said the entry of LCC's into the Asian region
has seen a dramatic increase in passenger numbers
through the stimulation of pricing initiatives, and the
opening up of new routes.
"This has had benefit for not only
the traveling public but also to national
economies. The Traditional carriers have been
forced to adapt to a changing environment, but it can
benefit everyone," Daff said. As an exciting year
comes to an end, EyeforTravel is already set to conduct
the next edition of TDS Asia in Singapore on 13
and 14 March 2007.
Session two on the opening day of the
conference, will be about the impact of LCC's on online
travel and distribution.
Akin to nature of the Asian market, low
cost carriers too, have diversified models within the
region and even within the same country.
Speaking of India, GoAir's Chief
Commercial Officer Raj Halve, a confirmed speaker for
the LCC session during TDS Asia 2007 says, "In
addition to traditional channels like travel agents and
airport counters / ticketing offices, GoAir also have
adopted innovative distribution channels like the
internet / cybercafés, call centres, PCO's and
m-Commerce (mobile commerce)."
Just like the vast number of channels,
the pricing strategy across them is equally as
intriguing.
For example, Sanjay Kumar, Vice
President - Planning and Marketing, SpiceJet Limited,
another confirmed speaker, on the issue of rate parity
across the various distribution channels says, "We
clearly look at the cost involved in each channel and
work out our pricing accordingly. So far, we have
maintained the same fare in the call centre as will be
on the site. But very soon, we will create a pricing
difference to this channel so that we can reduce the
cost accordingly."
Considering the intricacies associated
with one market like India, an opportunity to meet and
network with the cream of distribution executives across
the region would be hard to miss!
For the early-bird discount book
before 15th December 2007. For information on reserving
your place visit: http://www.eyefortravel.com/tdsasia2007
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