If you are looking for an insight into the possible future of airline marketing to consumers take a look at Farelogix launch of its new product FLX Merchandise (FMS2). Billed as the flagship airline merchandising solution from Farelogix, the tool enables airlines to dynamically package services to travelers, either as an alternative or a complement to standard a-la-carte merchandising.
"This new capability – in alignment with IATA’s NDC vision – greatly expands the levels of creative packaging, personalization, and transparency available to merchandising executives focused on growing revenue and loyalty in the nascent world of airline retail," Farelogix says.
The new technology offers NDC-compliant XML connectivity, Farelogix says. The International Air Transport Association's (IATA) New Distribution Capability (NDC) is a source of controversy among travel agents and is now being reviewed by the U.S. Department of Transportation (DOT).
Using Farelogix’ new Dynamic Bundle capability, an airline can offer multiple a-la-carte services wrapped into one service bundle depending on any parameter(s) the airline chooses. For example, an airline may choose to offer theme-oriented bundles, such as a “Comfort Bundle” with noise-cancelling headphones, pillow, blanket, and premium comfort seat; “Executive Bundle” with Wi-Fi, priority boarding, and business seating with power port; or “Party Bundle” for specific markets or times of year, Farelogix says.
Alternately, a bundle could be negotiated specifically for a corporation, reflecting negotiated services only available to travelers authorized to buy them. It is even possible to give travelers the option to “Create Your Own Bundle,” allowing the consumer to choose, for example, three out of five optional services at a bundled price, Farelogix reports.
“This takes personalization and trip customization to a new level, giving travelers unprecedented flexibility of choice while bringing airlines another step forward in their newfound roles as retailers. It also puts the airline focus where it needs to be – on generating revenue and making their customers happy,” said Jim Davidson, president and CEO of Farelogix.
“The big question for airline marketers is: which services are most desired by which customer segments, and in what combinations? For example, do some travelers want the airline equivalent of a Happy Meal or the NFL sports package? Or, for premium service airlines, how about a spa package that may include a combination of in-airport and in-flight services? Think about a loyal traveler facing a missed connection: what bundled services can be offered in real-time to transform frustration into satisfaction? With the new capabilities of FLX Merchandise, airlines can easily test market countless new service combinations without the headache of custom implementation or long time-to-market cycles. And in the process, they have the opportunity to give the traveler exactly what they want during a travel experience – which drives loyalty to the airline brand," Davidson says.
FLX Merchandise, which is a component of the Airline Commerce Gateway powered by Farelogix, enables airlines to remain in control of their product offerings and provide truly targeted offers, down to the individual traveler level, across multiple distribution channels using NDC-compliant XML connectivity, Farelogix says. This new functionality is now available to any license holder of the FLX Merchandise product (FMS2) and is already being used by one of the largest global airlines, according to Farelogix.