It is becoming more and more evident that airlines must embrace technological innovations and digital channels to better communicate with their customers, and also to increase their onboard ancillary revenues.
One airline that is clearly committed to boosting its ancillary revenues, while taking advantage of the opportunities provided by digital developments, is Air New Zealand.
In an interview with FTE, Dianne Parry-Ernst, Manager Direct Ancillary Revenue, Commercial, Air New Zealand, outlines the airline’s proactive attempts to integrate the digital world into its ancillary and passenger communication strategy. “We have been examining the customer journey to identify stages where ancillary products have a limited presence and strengthening the retailing approach at these key points in order to increase customer awareness and offer customers the right product at the right time, via their preferred platform,” says Parry-Ernst.
For instance, in February the airline launched its own artificial intelligence-powered chatbot, Bravo Oscar Tango – Oscar for short – to improve customer communication. “We are also reviewing our customer communications, including content or help-based communications such as Oscar our bot, and when appropriate providing a path to purchase ancillaries,” Parry-Ernst adds.Connectivity, pricing, distribution platforms and personalisation
While more traditional onboard sales channels hold little growth potential, Air New Zealand truly realises the benefits of a more digital approach. Ernst explains: “Connectivity, pricing and distribution platforms, along with personalisation, will be key to optimising in-flight ancillary sales. Digital developments enable customers to take advantage of the on-demand economy. Uber has a host of products developed to cater to this increasing societal trend.
“The on-demand customer segment is growing and these customers are increasingly making travel choices closer to departure as the digital ecosystem enables them to do so. Onboard last minute, personalised ancillary sales meet this growing customer need and in-flight Wi-Fi provides connectivity to the airline’s pricing and distribution systems, enabling real-time sales and fulfilment of in-flight ancillary.”
With Wi-Fi being available onboard, this opens more opportunities for airlines to offer targeted content and products to passengers. Indeed, some airlines have even expressed a desire to become the “Amazon of air travel”, by creating a platform for passengers to book not only flights, but also hotels, onward travel tickets, destination experiences and more relevant services.
Ernst highlights three key components when speaking about what shapes a successful “Amazon of air travel” experience: “Customer awareness and the airline’s positioning in the market, the airline’s ability to personalise the booking process and access to capital, partnerships and the organisational structure, and capability required to launch and sustain such initiatives.” She adds: “A few airlines have strong regional travel ecosystems and are accomplished travel retailers, however in the case of an “Amazon of travel”, consideration should be given to the global marketplace where the principal competition is likely to be the likes of Google, Facebook, and Uber, which are already taking action as they know they have a competitive advantage with customer reach, data and trust.”
Naturally, platforms such as Airbnb and Google can be seen as potential competition to the airline industry. However, Ernst believes that “given Airbnb and Google’s global reach, existing customer data, customer trust, and capability to innovate and transform, smart partnership strategies where each party brings benefits to the table are likely to create the most successful, customer-focused outcomes”.
Air New Zealand, indeed, offers customers a travel experience beyond flight and in-flight ancillaries, which includes a mix of accommodation, ground transport and destination experiences.
| A FutureTravelExperience release || June 21, 2017 |||
Youth Minister Nikki Kaye tonight announced details of the $6 million investment over four years under Budget 2017 to fund more youth enterprise initiatives.
Ms Kaye made the announcement at Victoria University’s Rutherford Building in Wellington, where eight teams of young people had gathered to take part in the Greater Wellington Region finals of a ‘Dragons' Den’ competition, pitching their ideas for innovative companies to a panel of local business leaders for a share of $5000 of prize money.
“Youth enterprise funding is about supporting young people to develop entrepreneurial skills through a range of youth-focused business and enterprise initiatives,” says Ms Kaye.
“It was great to announce details of the funding at an event where the ingenuity and business acumen of young people was on show for all to see.
“In a rapidly changing global economy, young people with entrepreneurial knowledge, skills and aptitude are more likely to succeed in all areas of life, so this is about inspiring our next generation of potential leaders and innovators.”
The funding announced as part of Budget 2017 will include the following investments:
“Young Kiwi entrepreneurs are already developing new and exciting businesses that are succeeding here in New Zealand and overseas, some already worth millions of dollars,” says Ms Kaye.
“This funding is about inspiring and supporting more of our young people to develop the skills and confidence they need to take their innovative ideas to the next stage and turn them into reality.
“Through the initiatives the funding will support, young people will develop a range of transferable skills such as problem solving, communication, decision making, team work, financial acumen and leadership.
“I expect around 5,000 new opportunities will be created through this funding.
“The next big company to make waves on the international stage could be born out of one of the initiatives that will be supported, just as it could emerge from the young finalists gathered in Wellington tonight.”
| A Beehive release || June 20, 2017 |||
Rockwell Automation has appointed Scott Wooldridge as Managing Director for Australia and New Zealand.
In the role, Wooldridge will oversee sales and business operations in Australia and New Zealand and be responsible for the company’s Growth and Performance Strategy, involving the overarching responsibility for people and strategy in relation to sales, service, delivery, projects and customer care.
“I’m looking forward to working closely with our key distributors, system integrators, end users and OEMs to make sure they continue to be well supported with industry leading power, automation and data management solutions and services,” said Wooldridge. “These Rockwell Automation solutions provide key competitive advantages for our PartnerNetwork organisations, enabling them to be market leading entities in their own right.”
Wooldridge has attained engineering and sales experience in the automation and energy industries both within Australia and the United States. Most recently, the CEO officer of the ASX listed company, Energy Action.
“A key strength of Rockwell Automation is that it is the largest company dedicated to industrial automation, it lives and breathes automation,” said Wooldridge. “I’m looking forward to contributing to its future and helping our customers meet their operational and business objectives in the long term.”
| A Ferret release || June 20, 2017 |||
Palace of the Alhambra, Spain
By: Charles Nathaniel Worsley (1862-1923)
From the collection of Sir Heaton Rhodes
Oil on canvas - 118cm x 162cm
Valued $12,000 - $18,000
Offers invited over $9,000
Contact: Henry Newrick – (+64 ) 27 471 2242
Mount Egmont with Lake
By: John Philemon Backhouse (1845-1908)
Oil on Sea Shell - 13cm x 14cm
Valued $2,000-$3,000
Offers invited over $1,500
Contact: Henry Newrick – (+64 ) 27 471 2242