Carriers worldwide are making dramatic business model changes: Sabre
A survey conducted by Sabre Airline Solutions, featuring 90 airlines across the globe, has revealed that while fuel cost instability and revenue management are among the top challenges for carriers over the next 18 months, it is customer loyalty and retention efforts that are viewed by an overwhelming majority of survey respondents (86 percent) as having the most positive impact on their business.
Published: 14 Oct 2009
A survey conducted by Sabre Airline Solutions, featuring 90 airlines across the globe, has revealed that while fuel cost instability and revenue management are among the top challenges for carriers over the next 18 months, it is customer loyalty and retention efforts that are viewed by an overwhelming majority of survey respondents (86 percent) as having the most positive impact on their business.
Customer experience was ranked by nearly 50 percent of those surveyed as the primary issue related to customer loyalty and retention. The importance of developing customer loyalty is part of the unwieldy crisis airlines face today as charging additional fees is viewed by them as one of the top tactics to increase revenues.
Overall customer satisfaction with airlines was down this year, in part because of costs and fees, according to a study released in June by J.D. Power and Associates.
According to 58 percent of those surveyed, merchandising and ancillary revenue will help airlines’ bottom line results. Baggage fees, travel insurance, and vacation packaging were rated among the highest in the survey to generate revenue.
Other key Sabre survey findings: