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Emirates Airline – EmQuest Case Study

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Updated: Dec 15th, 2018

Executive Summary

Being a company inside another, EmQuest deals with GDS and currently has a ten- year contract with Saber where it acquires a 70 per cent commission on distributions. EmQuest has four classifications of travel (A-B-C-D) derived from quantity of segments sold with the mass of sales and greater concentration lying in groups C-D. EmQuest has a number of departments with each playing a key role in its operations.

Additionally, the products of EmQuest are numerous and competitive. Dubai is the most fruitful revenue source for EmQuest, Northern Emirates comes second, Dnata, Abu Dhabi, and lastly Africa as it is a new market. Ridiculously, EmQuest obtains high income on cancelled sections.

Introduction

Being a company inside another, EmQuest handles GDS (region where airlines dispense their products). EmQuest currently has a ten- year contract with Saber, a new product (GDS) distributed by EmQuest. At all times, EmQuest always acquires a 70 per cent commission on distributions of Saber.

The departments contained in EmQuest comprise of technical support, vendor support, customer support, business development, as well as sales and products. Each of these departments plays a key role in the operations of EmQuest. Additionally, EmQuest associates with a third party to enable them to acquire tools such as booking builder, which is a program that operates as a GDS. Low cost carrier uses booking builder for supply to travel agents.

Revenue that is generated by per passenger segment in EmQuest is for instance DXB > LHR >LHR > DXB representing two segments through which EmQuest makes money. There are four classifications of travel derived from quantity of segments sold. These classifications are A-B-C-D with the mass of sales lying in groups C-D. As a result, incentives are generally given to those groups. The product group has a tendency of demoing out every new programme in addition to testing it up to when it enters in its target market.

Products of EmQuest

Saber

Saber is a certified EmQuest product that is the only distributors of the United Arab Emirates (UAE), the Indian Ocean Islands, and Africa. There are four sections of Sabre namely:

  1. Sabre efficiency suite
  2. Sabre revenue suite
  3. Sabre service suite
  4. Sabre value suite

From the above four programs, the most useful ones are efficiency, service, and value. Some of the finished products of Sabre include the following:

  • Sabre Red Workspace- finished product for the travel agent.
  • Sabre mobile application- used by travel agents for sending email customers allowing them to inquire about the booking via the mobile.
  • Tripcase- a website that illustrates client bookings done on Saber

In the UAE, the market share is 50 per cent of Saber and AMADEUS and Galileo utilize the rest. Sabre as well offers outstanding reporting systems for comprehending amount and kind of tickets and other reporting types. Sabre permits travel agents to make one-way bookings only.

Booking Builder

Booking Builder connects Sabre to low cost carriers. Booking Builder offers back office resolutions, with regard to generating reports on Passenger Name Records (PNR) daily, thus saving time and money. In general, Booking Builder can be modified and interconnected with Sabre.

Sabre Web Booking Engine

This is an online booking engine supported by EmQuest to let travel agents offer aid to customers by allowing them to make their bookings, generate a PNR, and ultimately ticket at a travel agency. For this programme, the requesting price is $250 a once paid fee, and afterwards $200 on a monthly basis with forty bookings at no cost. For every booking in excess of forty, there is a fee of $1.25. For low cost carrier, every booking in excess of forty is charged $4.

Get There

Get there concentrates on corporate, and alters flights as per the corporate regulations and directives. Get there also permits booking of hotels and car, and ultimately the bought booking will generate a PNR, send for endorsement inside the corporation, and finally to the travel agent via a queue system that permits the travel agent to collect the PNR and provide the ticket.

Agency Sales and Support Enterprise Tool (Asset)

ASSET is created solely for Sabre. It looks at agencies making use of Sabre, considers the kind of calls received by the client support, finance computations for inducements given to agents, and section productivity. The generation of this report takes place monthly. This is a superb and thorough report.

Back Office Sales System (BOSS)

BOSS enables agents to publish reports, record ticketing and portal transactions, document payment vouchers, and produce balance sheets. Statements are given to suppliers (The Emirates Airline) as well as corporate clients. Invoices are provided to the end customer. Fascinatingly, customers are able to book and buy tickets on credit.

Videcom Reservation System (VRS)

VRS includes several systems like reservation systems and CRIS just to mention but a few. The VRS permits companies that approve it to be seen on a GDS and travel agents can subsequently book flights via VRS adopting airline. Additionally, VRS has a small cargo system that holds small cargo enquiries and operations. EmQuest obtains revenue in two methods, viz. by vending the system or on each section the adopting airline vends where Emirates obtains about thirty cents on each section every month following a sale of the first 12,000 segments.

Operations of EmQuest

Dubai is the most productive income source for EmQuest, Northern Emirates follows, Dnata, Abu Dhabi, and lastly Africa since it is a new market. Amusingly, EmQuest creates income even on cancelled sections. Sabre share 65 per cent of the cancellation profits per section.

The target for the current financial year is 105 million UAE Dirham (DHS); however, 90 million DHS is predicted including total sections. Problems being encountered are a lot, but the ones generally happening are ticket reissuance revalidation. The client support team uses phone calls and emails. However, email service does not serve the U.A.E market, and just serves some African nations like Nigeria, South Africa, and Kenya.

Conclusion

Being a company inside another, EmQuest deals with GDS and currently has a ten- year contract with Saber where it acquires a 70 per cent commission on distributions. EmQuest has four classifications of travel (A-B-C-D) derived from quantity of segments sold with the mass of sales and greater concentration lying in groups C-D. There is no doubt that due to its outstanding products and services, EmQuest holds a competitive advantage in its markets.

Recommendations

  • With regard to marketing, Sabre should tackle class A and B agencies instead of D and C only so that their reputation and the operations remain ahead.
  • EmQuest should boost its operations in Africa and in the cancelled sections in bid to maintain a competitive advantage, since even without major focus these areas generate considerable revenue.
  • EmQuest should ensure that the email service serves its entire market instead of just a few nations in Africa. This aspect will go a long way in easing the means of addressing complaints and needs of customers and thus yield customer satisfaction.

Emirates Airline – Pricing

Pricing

Executive summary

Pricing denotes a turning point for the Emirates Airline in addition to being a high influence department. The major attention of the pricing department is to satisfy diverse target markets ranging from Dubai to the rest of the world and from the rest of the world to Dubai. While strategic pricing relies on seasons, tactical pricing concentrates on confined and short-range sales as well as classes sold on. There are numerous and different tools employed in pricing as outlined in this report. The practice of settling at a price happens as per different listed steps. Operational pricing is answerable to activity price-work packages. It is vital to comprehend fare codes and read them sagely as they signify a fare found on a ticket.

Introduction

Pricing signifies a landmark corner for Emirates airline as well as a department having a high influence on the group. The major concentration of the pricing department is to satisfy diverse target markets ranging from Dubai to the rest of the world and from the rest of the world to Dubai.

Competitive analysis exists in a bid to know the price that competitors hold and strive to match them, and market analysis exists with regard to demographic study. Strategic pricing depends on seasons while tactical pricing concentrates on restricted and short-range sales in addition to classes sold on.

The practice of getting a price occurs as per the following steps, viz. instigating a market analysis and deciding a tactical or strategic price, discussions involving outstation and pricing with the aim of concurring on the price, sending concurrence to head office, filling price in ATPCO, and assessing price policy subsequent to its going live.

The factors that influence price include competitive pricing policies, product/services of Emirates airline, economic situation, affiliations, seasons, and market share. This report underscores information surrounding pricing coupled with giving recommendations with regard to the Emirates airline.

Strategic pricing department

Strategic pricing department is accountable for the following:

  • Bettering Route Productivity via optimal network pricing activities
  • Checking, reporting and responding to international competitor action and fare charges
  • Developing Pricing System and associated systems from a business viewpoint
  • Easing streamlining of Procedures and Processes
  • Offering Fare Data to Scheduling New Routes
  • Pro-actively discovering chances for fare increases
  • Scrutinizing fuel price

Generally, outstations have a tendency of possessing transactions and a structure; slicing corporate into ranks derived from the profits they make for Emirates, and every rank entail a specific discount proportion on flights to various destinations.

Tools employed by pricing

Airfare

Airfare is critical in promoting fares and as well identifying a corporate or a different private section. Airfare permits outstation to know fares being nominated, and permits pricing to endorse it and be aware of competitor fares, either illustrating cancelled, new and revised. The tool permits the station to gather the right information with regard to market and changes the competitors are making.

Route analysis

Route analysis bears significance when discovering unconstructive and weak routes controlled by inward and outward environment. New route analysis generally considers the fare attributes from competitors, and afterward the team scales fares from competitors in the GDS.

Yield analysis

To know the cabin class doing well on a given route, yield analysis is carried out concerning analysis of standard fares for each cabin class.

AQUA reports

AQUA reports have top selling segments with regard to the amount of coupons traded and profits produced for a particular segment. AQUA reports enclose information on passengers that have already flown. This is a vital tool to get sales for particular periods.

Competitor analysis

Competitor analysis is an excel sheet that is updated monthly and is carried out for the far-east continent. It helps outstations to realize the situation of competitors with respect to prices and location of their stations.

Interline agreements

Interline agreements handle other airlines where it has the accountability of trading documents within a segment and as well soaring to an offline segment with a different airline. Interline agreements engages two or more airlines on a similar route. Interline traffic agreements are of three kinds namely:

  • Uni-lateral agreement- involves EK trading their ticket accumulation but not different airlines
  • Bi lateral interline agreement- entails both route interlines, where different agreed airlines trade their ticket on routes EK flies to and does not fly to
  • Multi-lateral interline traffic agreement- contains no carrier concurred upon to possess an interline accord with. If a carrier is a part of IATA, they can trade upon their stock. Prior to making a concurrence, EK verifies the financial conditions and risk management capabilities of other carriers, whilst bringing together a security deposit.
  • Special prorate agreement- is a single year concurrence between carriers having an interline agreement, in support of a fixed segment and secured the booking class. This agreement has advantages that include:
  • Better cheaper rates
  • Higher revenue
  • Improved flights to offline sectors
  • Round the world agreements- entail agreements centered on international paths

Pricing distribution

Pricing distribution is a panel of 28 individuals accountable of deciding the fares in every GDS. ATIPCO company is accountable of allocation of fares in every GDS. They have a tendency of helping outstations with any difficulty with fares.

Staff travel

IATA letter is used in acquiring reductions with different airlines for employees, if EK has no relationship with the other airlines. Z fares have two classifications namely: sub-load and confirmed. CAT wider can be reserved for a period of ninety days and below is a confirmed ticket.

CAT 90 is offered for close family with just two tickets booked per year for every relative, the employees and wives obtain unlimited tickets. CAT 99 can merely be flown on economy class. It cannot be refunded and re-routing is prohibited. Six coupons are permitted on CAT C firm, CAT wider, and CAT 99. Annual leave ticket is just four routings permitting on a ticket.

Global Distribution Systems team

In pricing, the Global Distribution Systems (GDS) team is accountable for affiliation upholding with GDS’s or Computer Based System (CRS). Outstations are charged on sectors being traded on GDS’s. Interestingly, the prices of fuel in a nation are paid by the outstations. Fairlogics denotes an online platform meant for cancelling out GDS’s and permitting travel agencies examine and reserve inventories on airlines and was accepted by Emirates in the year 2007 and might be a strong substitute for GDS’s.

MIDT signifies a file that encloses every flight and transaction on an international level and much more appropriate information. For security purposes, operation managers have to set a limit on the number of tickets that can be sold by an agency. The amount of the limit hinges on record and the form of financial deals of tickets issued. The operation manager in every nation should always maintain the price of the GDS low and restricted.

Pricing

Operational pricing are accountable to activity price work packages suggested and demanded by outstations. Remarkable terms to discern are sales period, of the time customers can buy; and travel period, when they have to fly on particular dates. Fare codes have to be comprehended and read sagely for they signify a fare found on a ticket. For instance, TS1MPCZ1; T denotes the class (RBD), while S signifies special fare, 1M the ticket period, P symbolizes promotion, CZ the nation code, and 1 signifies published.

The last digit on can contain different integers, where 1 stands for published fare, 2 for private fare, 3 for corporate fares, and 7 for IATA fare (where no fare is given by EK). The starting letter could be B, U, M, E, W, R, or Y signifying annual fares. When a starting letter is X, L, T, or Q, it denotes tactical fares in the order of lowest to highest.

Outstations must check and agree on cancellation regulations and ticket fees. The first stop over are without charge, and the second onwards are charged. Corporate deals as well fall under the management of the team.

Outstations generally use a work package to assess the pricing superintendent in addition to estimations, with respect to clear validations specified by the outstation and market aspects. Pricing superintendent generally cuts down fares to obtainable structure for corporate reductions coupled with when an exceptional request is prearranged by the outstation. Fare regulations have twenty categories.

Global deals serve corporations, which can pool more than $750,000. Nevertheless, pricing and outstation have disagreements with respect to reducing prices. The aim of stations is to trade more, while the aim of pricing is to increase yield. When there is a great EK market share, it is not necessary to reduce the price, and outstations must understand this. With respect to corporate deals, special fares according to their particular pseudo number are filled for travel agencies.

Conclusion

Pricing denotes a landmark corner for Emirates airline in addition to a high influence department. The major attention of the pricing department is to satisfy diverse target markets ranging from Dubai to the rest of the world and from the rest of the world to Dubai.

Strategic pricing depends on seasons while tactical pricing concentrates on restricted and short-range sales. Global deals are meant for corporations that can pool more than $750,000 for firms that cannot pool such an amount cannot operate competitively in the global arena. Pricing and outstation have differences with respect to cutting down prices. While the aim of stations is to trade more, the aim of pricing is to augment yield.

Recommendations

  • Pricing and outstation have to work together and thus handle their disagreements with respect to price reductions with the aim of maximizing profits. When EK market share is high, prices should not be reduced as a way to make higher profits.
  • Global deals should not be restricted to corporations that can add up $750,000 to avoid locking out some corporations. The main factor should be capability and reputation instead of funds
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