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Are these 4 P’s enough? Due to tough competition in the industry, as it will
be more tougher to compete in the near future because of multinational alliances
among airlines, marketing strategies also have been developed to initiate core
and distinctive competitiveness. The 7-Ps model by Booms Britner is more useful
for services industries and arguably also for knowledge-intensive environments.
People
This is human resource management. It includes all people directly or indirectly
involved in the production to the delivery of the service or product. The new tend
is empowerment of the human resource. In a world of competition, we need to
have knowledge workers being empowered as a new management approach.
Looking at the other side of the coin is the consumers which is the barebone why
we are doing business (on a marketing perspective). Getting closer to the
consumers add significant value to the total product or service offering.
Process
This involves the procedures, mechanisms and flow of activities from the
production of the product to which product/service is consumed. Customer
Management Processes comprises the manner of how factors of production are
manufactured into final product until to the consumption of clients. Through the
process, lots of inputs are being deployed which are fruits of market research. In
this way, satisfying, not just the needs, but the wants of the consumers are well-
adhered.
Physical Evidence
The ability and environment in which the service is delivered, both tangible goods
that help to communicate and perform the service and intangible experience of
existing customers and the ability of the business to relay that customer
satisfaction to potential customers.
The current down to earth breakthrough man has to contend with is the
advent of very large commercial aircrafts, composite aircrafts made of fewer
parts, pilotless aircraft, alternative fuel for aviation. Since all products are affected
by costs, high technology products with most likely high price will be tougher sell
to target markets. The prospect of marketing the new era products will just within
the limits of consumer with high purchasing power. These new products will
require a new marketing approach.
Example:
A Quick History
The four major GDS’s are Galileo, Sabre, Worldspan, and Amadeus, though
there are other GDS operating systems, these are the main drivers. As the
industry evolved, it became clear that the existing regulations needed to be
updated or eliminated. Over time, some GDS’s were no longer owned by airlines.
Additionally, the rise and growth of the Internet led to alternative distribution
channels (ADS). A key statistic to note is that 88 percent of all reservations were
booked by a GDS in 1983. By 2002, only 53 percent of all reservations were
GDS-created.
Deregulation will enable the GDS companies to offer more competitive pricing
and packaging alternatives to attract more travel suppliers, which may result in
more content for end users. By 2009, the GDS’s should be in a position to
provide those seeking to purchase travel with one single place to obtain a
complete array of the lowest fares and rates, thus eliminating the need to search
multiple sources.
In the field of business travel distribution, the widespread opinion on what the
impact of deregulation of the GDS’s appear to suggest deregulation will generate
benefits similar to those created by the deregulation of the airlines. By increasing
competition and obliging GDS’s to diversify their revenue streams, deregulation
will provide improved technology and new products from which hotels and the
individual business travelers will benefit.
Some Changes to Expect
1• GDS’s will be free to decide how to return display results. Previously,
systems were prohibited from biasing displays in favor of a hotel or group
of hotels.
2• Some systems may de-list smaller suppliers, which will be unable to
generate fees of sufficient size. In turn, these suppliers will have to find
alternate channels of distribution.
3• Third party agreements. Systems will partner with entities that deliver
additive or exponential value. For example, a GDS may ally with a
company using relational databases in order to release inventory at select
times at select prices.
1• As inventory availability, rate information, and content becomes more
fragmented, agencies will be able to provide value to travelers by offering
intensive information whether online or off
2- alternative travel information processing will be possible through
combining a central agency and GDS. On possible complication is the
disintermediation from the suppliers to end-users.
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