Flight Centre embraces LCCs, ramps up online

Flight Centre embraces LCCs, ramps up online

Flight Centre is focused on building sales in sectors that have previously not been considered growth priorities, with low cost carriers an important part of the plan.

Managing director Graham Turner explained that, although LCCs had previously offered “low or no margin”, they are adapting their business models and are working more closely with the agency group for “mutual benefit”.

He highlighted commercial agreements which are now in place with Air Asia and Scoot in Australia. Another with Tigerair Australia is just being finalised. It also has deals in place with easyjet in the UK and JetBlue in the US.

“We see these airlines as important additions to our supplier stable and their presence supports our goal of offering the widest choice of airfares to customers,” Turner said.

The strengthening of ties will also see more low cost carrier fares added to Flight Centre’s websites.

Ancillary content will also be added, with Turner highlighting the growing importance of the revenue stream which is expected to be worth around US$60 billion globally in 2016, according to a new report.

Meanwhile, online continues to be a major focus for the firm as part of its “blended” approach.

“We see growth opportunities online as part of our blended offering and by targeting customers who prefer to transact via this channel,” Turner said.

The company has been working to personalise the online experience for its customers, with an O-care team to proactively call customers booking international flights online and help them avoid common mistakes.

Additional online brands will be “developed or acquired” to target sectors that have shifted online, Turner revealed.

“It is also worth highlighting the vital role the web plays in our business in terms of enquiry generation,” he said. “About half of our enquiries are generated online in Australia.”

The expansion of Flight Centre’s footprint will also see it ramp up efforts in strong sectors like foreign exchange and cruising.

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