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Every airline is investing in reducing distribution costs by focusing on well-known initiatives like driving more traffic through direct channels and maximizing e-ticket adoption, just to name a few.
But is that enough?
Now spread around the world, low-cost airlines have pioneered a revolution in airline reservations through the adoption of a more streamlined, cost effective and integrated business model known as ticketless travel. The industry claims to have reduced processing costs by a factor of up to 13 compared to the traditional ticketing approach.
An example of true business transformation, ticketless travel was developed from scratch. It challenged the traditional view that duplicate processes—reservations and ticketing—in two distinct entities throughout the travel experience had to be maintained. Benefits have not been limited to just cost reduction, as instant revenue recognition and rich customer transaction data have delivered a real upside to sales effectiveness.
As airlines continue to explore innovative ways to cut costs, such radical simplification of traditional processes is a fundamental requirement. "Business as usual" no longer provides a viable option for survival.
During this webcast, experienced guests from the airline industry discussed the ticketless travel experience and examined the potential for adoption among traditional network carriers. The following questions were addressed:
- Is the ticketless model a relevant option for established carriers?
- Does the 100 percent adoption e-ticket provide a similar reduction in cost?
- How "simple" does my business model have to be to adopt a ticketless solution?
- Can GDS distribution be cheaper in the ticketless model?
Hosted by Alex Cruz, senior executive of Accenture's Airline group, this webcast also featured David Huttner. A seasoned airline executive, David was most recently head of strategy and communications at Virgin Blue and is now working with the airline as an advisor.