and the upper hand.
this morning appears in Hosteltur news about the low cost airlines. The whole story revolves around a study on the situation in Europe this Key player.
The idea that flies the news is that these operations have doubled in volume in a short time, the trend is upward and in Europe already have 32% of total turnover. (Poland is the country where low cost reach the largest market share at 52%, followed by Spain with 50% Ireland 48%, Italy 40%, and the United Kingdom, with 37%. In her extreme, placed Germany, with 29% and France with 22%)
The rest of the story develops this study, a strong focus on possible scenarios and solutions regarding the airline industry.
But at destinations ... What will the future scenario derived from this clear position of strength?
Some conclusions. 1. In the LC size matters. The growth of this model is based largely on cost-based competitive advantages including economies of scale. It is logical that the largest is getting bigger and therefore, this huge and rampant market share is concentrated in few companies. Am the only one who notices that are too many eggs in one basket?
2. The map entries of the destinations is becoming increasingly complex and volatile (channels through which tourists arrive a destination (SATO, AA.VV, TT.OO, LCC).. The OTES also grow strongly, accounting and a total of approximately 30% European market share online. Am I the only one who thinks we should talk about both product diversification and / or markets and the diversification of channels?
3. The level of our brand positioning and the level of loyalty of our markets (second home built) , is what must check the growth of this company in a territory and in any case, the subsidy policy. At the moment we are focusing on with these companies to negotiate agreements on co-branding where we try to protect and control the intensity of the promotion of our brand, in a balanced manner.
Therefore, it is clear that the concentration of risk variables and propensity to grants is directly connected with the level of loyalty, the positioning of our brand and channel diversification. It occurs to me the following equation.
F + P + D = CR + PS
Where: F = Loyalty
P = destination brand positioning. D = Diversification of channels R = Concentration of Risk. PS = propensity to subsidies.
and in which we must maximize the variables F, P and D and to minimize the variables CR and PS.
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