1. CHAPTER 2: THE MARKET FOR AIR TRANSPORT SERVICES
What Business Are We In?
TRANSPORTATION
COMMUNICATION
LEISURE
LOGISTIC
INFORMATION
SELLING SERVICES

2. Do you think transportation is important for social need and why?
What kind of transportation we have now?

4. THE MARKET FOR AIR TRANSPORT SERVICES
What Business Are We In?
Transportation
Long haul
Short haul
Door 2 door
Special service
etc

5. CHAPTER 2: THE MARKET FOR AIR TRANSPORT SERVICES
What Business Are We In?
TRANSPORTATION
COMMUNICATION
LEISURE
LOGISTIC
INFORMATION
SELLING SERVICES

6. Example of communication we have now?
Telephone,
Internet,
Video conference
etc

7. THE MARKET FOR AIR TRANSPORT SERVICES
What Business Are We In?
b) Communication
- face to face meeting
urgent business deal
day trip
Business Competitor?

8. CHAPTER 2: THE MARKET FOR AIR TRANSPORT SERVICES
What Business Are We In?
TRANSPORTATION
COMMUNICATION
LEISURE
LOGISTIC
INFORMATION
SELLING SERVICES

9. THE MARKET FOR AIR TRANSPORT SERVICES customers disposable income
What Business Are We In?
c) Leisure & holiday
customers disposable income
disposable time
leisure holidays
Leisure activities

10. CHAPTER 2: THE MARKET FOR AIR TRANSPORT SERVICES
What Business Are We In?
TRANSPORTATION
COMMUNICATION
LEISURE
LOGISTIC
INFORMATION
SELLING SERVICES

11. - fast transportation of goods - meeting dateline any ideas….
THE MARKET FOR AIR TRANSPORT SERVICES
What Business Are We In?
d) Logistics
Air freight
- fast transportation of goods
- meeting dateline any ideas….

12. CHAPTER 2: THE MARKET FOR AIR TRANSPORT SERVICES
What Business Are We In?
TRANSPORTATION
COMMUNICATION
LEISURE
LOGISTIC
INFORMATION
SELLING SERVICES

13. THE MARKET FOR AIR TRANSPORT SERVICES
What Business Are We In?
e) Information
- moving urgent documents
- transportation of news
Docs, items, samples, products

14. CHAPTER 2: THE MARKET FOR AIR TRANSPORT SERVICES
What Business Are We In?
TRANSPORTATION
COMMUNICATION
LEISURE
LOGISTIC
INFORMATION
SELLING SERVICES

15. THE MARKET FOR AIR TRANSPORT SERVICES
What Business Are We In?
f) Selling services
Ground Handling
Airport Management

16. THE MARKET FOR AIR TRANSPORT SERVICES
What Business Are We In?
f) Selling services
Catering
In-flight Entertainment

17. THE MARKET FOR AIR TRANSPORT SERVICES
What Business Are We In?
f) Selling services
Piloting
Engineering

18. THE MARKET FOR AIR TRANSPORT SERVICES
What Business Are We In?
f) Selling services
Cabin services
Reservation/ticketing

19. THE MARKET FOR AIR TRANSPORT SERVICES
What Business Are We In?
f) Selling services
Dubai airport
Duty Free Shops

21. Chapter 2:The Market of Air Transport Services
Who Are The Consumer and Customers?
Market Segmentation?

22. Who Are The Consumer and Customers?

24. THE AIRLINE CUSTOMERS
The Consumers --- “ARE THOSE PEOPLE WHO ACTUALLY TRAVEL”
The Customers --- “They Are The Decision Makers”

26. CHAPTER 2: 4 CUSTOMER DECISION WHICH MUST BE ANALYSED
Will a trip be made at all?
Cost of travel
Firm try reduce expenditure to increase profit
What mode of transport will be selected?
Railway, bus?
Airplane?
For air trips, what class of service will be purchased?
First class
Business class
Which airline will be selected?
MAS?
Air Asia
Firefly?

27. CHAPTER 2: UNDERSTAND THE AIRLINE MARKET
The general customer need
Industrial buying behavior
The customers in the “business air travel market”
Leisure & Holiday Travel Market
Customers - Air Freight Market

28. CHAPTER 2: The General Customers Needs
Flight frequency; to allow travel flexibility
Roomy cabin: to permit working during flight
Personal benefits; incentives, frequent flyer program
Pride & ego: special reservation, check in (red carpet), cabin, etc
Lazy to change: stick to existing supplier
CHAPTER 2: The General Customers Needs

29. UNDERSTANDING THE AIRLINE MARKET
The General Customers Needs

30. The General Customers Needs

31. The General Customers Needs

32. The General Customers Needs

33. CHAPTER 2: UNDERSTAND THE AIRLINE MARKET
The general customer need
Industrial buying behavior
The customers in the “business air travel market”
Leisure & Holiday Travel Market
Customers - Air Freight Market

34. CHAPTER 2: UNDERSTAND AIRLINE MARKETING
2.Industrial Buying Behavior – DMU(decision Making Unit)
Decider
Gatekeeper
User
Buyer
Influencer

35. Industrial Buying Behavior – DMU (decision Making Unit)
Decider - he makes the final decision: owner, CEO, Senior Manager,
Gatekeeper – those people who control the flow of information into decision-unit. e.g.: PA protect their Boss from times wasting visit, unwelcome sales people.
User – those people who use the product or service, concern about quality , cost
Buyer – negotiate to get the best deal, expect reward from savings
Influencer – those people who don’t use a product, but who influence the final outcome-e. g: government, civil,
-Please read page:12-14

36. CHAPTER 2: UNDERSTAND THE AIRLINE MARKET
The general customer need
Industrial buying behavior
The customers in the “business air travel market”
Leisure & Holiday Travel Market
Customers - Air Freight Market

37. CHAPTER 2: UNDERSTAND THE AIRLINE MARKETING
3. The Customers in the “Business Air Travel Market”
Secretaries who makes bookings for their bosses – understand the bosses requirements,
Travel agents – 80% of bookings,
Corporate Travel Manager – special task
Customers – who provide feedback
Please read page 15-17

38. CHAPTER 2: UNDERSTAND THE AIRLINE MARKET
The general customer need
Industrial buying behavior
The customers in the “business air travel market”
Leisure & Holiday Travel Market
Customers - Air Freight Market

39. CHAPTER 2: UNDERSTAND THE AIRLINE MARKETING
4. Leisure & Holiday Travel Market
A) Their Concerned
~Is there other/better mode of travel
~Service and quality
Challenges from surface & ground transport
B) Children – facilities for children & babies
~women – UK, well plan program
C) Travel agent
~ provide package, visa etc
D) Tour operators
~ organizes travel in groups
E) Consolidators
~bucket shops, block seats to sell
on discount

40. CHAPTER 2: UNDERSTAND THE AIRLINE MARKET
The general customer need
Industrial buying behavior
The customers in the “business air travel market”
Leisure & Holiday Travel Market
Customers - Air Freight Market

41. CHAPTER 2: UNDERSTAND THE AIRLINE MARKETING
Customers - Air Freight Market
The Freight Forwarders
– 90% of business
b) The Senior Management of
Freight Forwarders
– decides on the airlines carrier
The forwarder’s clerks-decides on the emergency shipment and at late night
The integrator-a complete-services, door to door, FedEx, ups

42. What are the different between LCC compare with the other commercial Airlines??

43. Exercise!! What is the Low cost carrier? What is characteristic?
What LCC do and DO not do?

44. CHAPTER 2: MARKET SEGMENTATION
Definition 1:
~~A market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs~~

45. CHAPTER 2: MARKET SEGMENTATION
The Air Passenger Market
Air Freight Market
Selection of Airline

46. CHAPTER 2: MARKET SEGMENTATION
The Air Passenger Market
a) Journey Purpose -
b)Length of Journey-
c) Country/Culture of Origin of Traveler-

47. MARKET SEGMENTATION
1. The Air Passenger Market
a) Journey Purpose
- Pilgrim visits: Mecca, India, Malaysia
- Corporate business travel; services is important
- Independent business travel: cost factor is important

48. 1. The Air Passenger Market - cont
MARKET SEGMENTATION
1. The Air Passenger Market - cont
a) Journey Purpose-cont
- Leisure holiday:
high disposable income to cover accommodation and meals
- Leisure travel visiting relatives:
lower disposable income

49. CHAPTER 2: MARKET SEGMENTATION
The Air Passenger Market
a) Journey Purpose -
b)Length of Journey-
c) Country/Culture of Origin of Traveler-

50. MARKET SEGMENTATION
1. The Air Passenger Market - cont
b) Length of Journey
- Short-haul-route:
flight time less than an hour,
airport location and service,
frequency and timing
seats accessibility/ticket flexibility

51. MARKET SEGMENTATION
1. The Air Passenger Market - cont
b) Length of Journey
-Long-haul-route:
flight time more than an hour,
in-flight experience and service,
seating comfort, food,

52. CHAPTER 2: MARKET SEGMENTATION
The Air Passenger Market
a) Journey Purpose -
b)Length of Journey-
c) Country/Culture of Origin of Traveler-

53. 1. The Air Passenger Market - Country/Culture of Origin of Traveler
MARKET SEGMENTATION
1. The Air Passenger Market -
Country/Culture of Origin of Traveler
- seating comfort, European vs. Eastern traveler
- food for Muslim and non-Muslim

54. CHAPTER 2: MARKET SEGMENTATION
The Air Passenger Market
Air Freight Market
Selection of Airline

55. MARKET SEGMENTATION 2. Air Freight Market Emergency traffic:
- fast delivery of goods, door-to-door
- operating emergency; emergency parts for oil company or ship spare parts
- marketing emergency; suppliers meeting deadline, to service dissatisfied
customers
Perishability: good with short life span
By Type of Services
– 1st class/Buss Class
- Corporate policy
- Decision makers
- Advantages & services

57. CHAPTER 2: MARKET SEGMENTATION
The Air Passenger Market
Air Freight Market
Selection of Airline

58. MARKET SEGMENTATION
3. Selection of Airline
a) Business Traveler – corporate policy
b) Leisure traveler – tour operators

59. Summary chapter 2: ~~The market for air transport services.~~
~~Consumer and customer definition~~
~~ Understand the airline market~~
~~ Market segmentation~~

60. EXERCISE!!!!
Please explain the 2 market of air transport services and give your own example.
Please state 3 ways how can you improve the market of air transport service?
An airline has implemented the type of service which 1st, economic and buss class. As the customer, which one you prefer and explain why.
Please explain the definition of Consumer and Customer.
As a customer, what are your general needs which an airline need to pay attention?
As the airline industry operator, you must know the air passenger Market. Please explain 3 kind of the air passenger market.