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Top 5 best practices for LCCs to be successful with travel agents

Fredrik Odeen

Senior Manager, New Carrier Strategy, Travel Channels, Amadeus IT Group

There’s no doubt that airlines that have embraced an omni-channel approach are seeing the long term benefits of travel agency sales. They have expanded their geographical reach to capture incremental sales, accessed new customer segments, and generated significantly higher revenues from these customers.

 

Over the last three years, travel agents have delivered 28% growth in LCC sales, accounting for up to 30% of total low-cost carrier volumes. A decade ago many low-cost carriers didn’t serve passengers that used travel agencies to book flights. Today, dynamics in the travel industry have changed dramatically and most LCCs have a distribution strategy where the travel agency channel features prominently.

 

What we've learned

As we’ve worked with these airlines and travel agents, we have learned a lot about what works well and generates incremental value. For example, ourwork with easyJet has been mutually beneficial and from this collaboration we have been able todeliver real results for many LCCs and agents around the world. Armed with this and many other experiences, we’ve outlined theTop 5 best practices for LCCs to be successful with travel agents to help all carriers fully capitalise on the travel agency channel as business partners.

We’ve seen that the key is to understand your business partner's needs. For airlines, recognising what travel agents require to serve their clients and run their business, is the best way to form a profitable relationship. And today agents are more open than ever to including LCCs in their recommendations to travellers, especially if they can do so with minimal impact on the efficiency and service levels they provide.

So, what are the needs of travel agencies and how can an understanding of these help LCCs achieve their business objectives? Check out ourTop 5 best practices for LCCs to be successful with travel agents  report and have alook at the infographic for an overview of the study.

 

lcc ta infographic

Tags

Travel Platform, Research