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Effective Business Strategies in European Corporate  Travel Market Yasemin Erdemir 107604039
Corporate Travel Market ,[object Object],[object Object],Europe  h a s  35.2 % of all business travel market with  $327.000 billion business travel spending.
Attractive Market for Airlines ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Challenging Market for Airlines ,[object Object],[object Object],[object Object],[object Object],Source:  IATA Survey On   Business Travel (2007)
Challenging Market for Airlines ,[object Object],[object Object],[object Object],Source: OAG Data ( 2008)
Major Challenges and Trends in Airlines Industry ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: AEA Air Traffic Statistic
MAJOR AIRLINES IN EUROPE AND THEIR BUSINESS TRAVEL SOLUTIONS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
MAJOR AIRLINES IN EUROPE AND THEIR BUSINESS TRAVEL SOLUTIONS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
MAJOR AIRLINES IN EUROPE AND THEIR BUSINESS TRAVEL SOLUTIONS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Corporate Travel Strategies in Airline Industry ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Alliances and Loyalty Programs ,[object Object],[object Object],[object Object],Many travel managers prefer to work with a specific alliance in order to get special bargain prices and to accumulate points for their air travel arrangements.  Airline Alliance Marketshare Airline alliances with which companies hold a contract*   2007 2006 Star Alliance 75% 54% Skyteam 50% 25% Oneworld 29% 21% None of these 25% 42% *Respondents allowed to choose more than one answer    
Social Responsibility and Green Movement According to 2009 IATA Corporate Air Travel Survey, 80% of air travelers have a concern, in some degree, about the environmental impact of flying. An example: Lufthansa focuses on two areas in particular:  environmental care and nature conservation
Hub and Network Design Strategies Turkish Airlines was to make Istanbul a natural hub, as the city is perfectly situated for connecting flights between Europe and the Middle East, reaching the Asia Pacific eastward. The airlines strategically designed its network to expand the transit market.
Open Sky Aggrement With this agreement, Air France, Delta, Northwest, and Continental Airlines launched new routes within days of Open Skies coming into effect.  Agreement is estimated to generate 26 million additional passengers in the first five years of implementation. This agreement will also provide opportunities for budget carriers that will be able to fly to cheaper regional airports in the US. Threat of low cost carriers towards network carriers will not be limited to short haul travel.
LCC Brands of Legacy Airlines In the battle for domination in the skies, network carriers adopt a new strategy to beat low-cost rivals at their own game by establishing own low-cost carriers
Premium Class Strategies Upgrading business class service and Premium Economy Class
New Business Models of Low Cost Carriers - Changes on distribution channel - More anchillary service - LCC alliances - Long haul flights
Thank You Effective Business Strategies in European Corporate  Travel Market

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Effective Business Strategies in Corporate Travel Market

  • 1. Effective Business Strategies in European Corporate Travel Market Yasemin Erdemir 107604039
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  • 12. Social Responsibility and Green Movement According to 2009 IATA Corporate Air Travel Survey, 80% of air travelers have a concern, in some degree, about the environmental impact of flying. An example: Lufthansa focuses on two areas in particular: environmental care and nature conservation
  • 13. Hub and Network Design Strategies Turkish Airlines was to make Istanbul a natural hub, as the city is perfectly situated for connecting flights between Europe and the Middle East, reaching the Asia Pacific eastward. The airlines strategically designed its network to expand the transit market.
  • 14. Open Sky Aggrement With this agreement, Air France, Delta, Northwest, and Continental Airlines launched new routes within days of Open Skies coming into effect. Agreement is estimated to generate 26 million additional passengers in the first five years of implementation. This agreement will also provide opportunities for budget carriers that will be able to fly to cheaper regional airports in the US. Threat of low cost carriers towards network carriers will not be limited to short haul travel.
  • 15. LCC Brands of Legacy Airlines In the battle for domination in the skies, network carriers adopt a new strategy to beat low-cost rivals at their own game by establishing own low-cost carriers
  • 16. Premium Class Strategies Upgrading business class service and Premium Economy Class
  • 17. New Business Models of Low Cost Carriers - Changes on distribution channel - More anchillary service - LCC alliances - Long haul flights
  • 18. Thank You Effective Business Strategies in European Corporate Travel Market