Air-Shopping Innovation: A View From the Cabin

Air-Shopping Innovation: A View From the Cabin Published December 2014 Analyst: Cathy Walsh

 

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Airline efforts to fight commoditization have inspired a broad array of ancillary products – and spurred initiatives that aim to usher in a new era of air shopping. From bundles and branded fares to personalized offers and pricing, travelers will have more options than ever before. As air-product complexity grows, however, transparency and value will continue to be primary drivers of travelers’ buying decisions.

Much of the discussion surrounding ancillary products (i.e., revenue-generating products beyond the air ticket itself) and new distribution capability has focused on conflicts among industry stakeholders. This article considers how a shift toward air merchandizing and personalization is likely to impact travelers' shopping and buying habits, and highlights opportunities and pitfalls relevant to all travel segments.

  • Introduction
    • Background
    • Airline Product Innovation
    • Intermediaries: Aggregating Complexity
    • Personalization
    • Conclusion
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