Airline Industry Case Study

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  The events of September 11th had a catastrophic effect on the airline industry. Braden Kelley worked with a few passenger airlines to help them find a new frame for their industry (an Industry Re-Think).You will see in the Passenger Lifecycle slides that the framework allows the airlines to see themselves as more than just a transportation provider. Instead, the framework provides the opportunity for the airlines to continue to innovate at each stage of the lifecycle, challenging themselves to exceed the example revenue and service opportunities we provided at the time.
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  • 1. Business Strategy Innovation - The Airline Passenger Lifecycle -The Airline Passenger Lifecycle was constructed in thewake of the events of September 11th to help the world’sleading airlines increase their revenue and cut costs.It provides a framework to drive innovation throughout theorganization by focusing employees on maximizing revenuefrom customer relationships rather than viewing themselvessolely as providers of point-to-point transport
  • 2. Airline Passenger Lifecycle Shopping, Eating, Transport Drinking, Working Shopping Parking Eating Drinking Working Check-In Security © 2003 Braden Kelley Home/Away Flight ShoppingTransport, Lodging, Eating Shopping, Eating, Drinking Site-seeing Baggage Claim Working
  • 3. Capturing Value between Home/Away and Check-InTransport Parking Examples: 1. Sell tickets for transportation Check-In to/from the airport 2. Sell tickets for airport parking (likely good success recruiting off-site parking vendors) Home/Away 3. Sell travel books for travel destination (outsource fulfillment to Amazon or others) © 2003 Braden Kelley
  • 4. Capturing Value between Check-in and Security Shopping, Eating, Drinking, Working Check-In SecurityExample:4. Sell advertising, for distribution with ticket, to airport shopsand service providers, thus creating a revenue stream forContinental Airlines and added value to customers throughdiscount coupons. To make it even more lucrative, also selldestination or stopover airport advertising. © 2003 Braden Kelley
  • 5. Capturing Value between Security and the Flight Shopping EatingExample: Drinking Working5. Offer passengers theopportunity to purchase a one- Securitytime use of the ContinentalAirlines lounge or businesscenter.-see also Example #4 Flight © 2003 Braden Kelley
  • 6. Capturing Value between the Flight and Baggage Claim Example: 6. Distribute sample packs from manufacturers to passengers as they disembark (for a fee from the manufacturers) -see also Example #4 Flight Shopping Eating Drinking© 2003 Braden Kelley Baggage Claim Working
  • 7. Capturing Value between Baggage Claim and Home/Away Example: 7. Sell expediting services to rental car companies allowing them to capture information and process customers more efficiently -see also Examples #1 and #4 Home/AwayTransport, Lodging, Shopping, Eating, Site-seeing Baggage Claim © 2003 Braden Kelley
  • 8. LandingThe Airline Passenger Lifecycle would, obviously, apply to the outbound and return flight.The seven brief examples illustrate how value can be captured at each stage of thepassenger’s journey.We have many, more innovative ideas that fit into the framework of this model that woulddrive revenue and profit growth.We also have years of experience helping companies improve their systems, processes,organizational effectiveness, and profitability.We look forward to the opportunity to do a more formal presentation, to answer yourquestions, and to proceed together in realizing some of the potential.Yours sincerely,Braden KelleyBusiness Strategy Innovation1344 Alki Ave SW, Suite 301Seattle, WA 98116(206) 349-8931 Email:
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