Tuesday, June 19, 2012

AirAsia Discussing Use of Travel Consultants in Burgeoning Markets


The highly successful B2C sales model may be slightly altered by AirAsia with the emergence of travel consultants in the airline’s distribution network. The agents will be mainly focused in smaller markets like the Philippines and Indonesia.

“(Travel consultants) are a very important growth (channel) for AirAsia. They should not consider us as the enemy” said Tony Fernandes, AirAsia group CEO.

They plan to increase cooperation with travel trade and will be making announcements in the coming months. They are also discussing the introduction of a new structure of commission based business for travel consultants.

AirAsia’s home country of Malaysia remains perfectly satisfied with the current state of distribution, which shows 95% of the country’s business comes solely from AirAsia’s website.

“I wonder when all airlines will realize that travel agents are their external sales force;” says Michael Patton, CEO of POTHOS, “servicing their customers, driving business and deserve the commission compensation that was taken from us so long ago.”

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