Successful Cutting Cost techniques – Global ONE Media
Increased struggle in commercial aviation twisted into negative financial bearing on airlines. There are many factors behind the negative impact: Increase in aircraft production and delivery, increased aviation security, political instability in the region, …
Airlines have been investigating cost cutting techniques. The tactics for cutting costs at the present time has also changed. Airlines have discovered that reducing good staff or cabin offerings is not the right method. Pioneering airlines have reached to a conclusion that reduction of cost is reshaping the progressions of operating without messing with passenger experience. They are aware that “they need passengers”; it starts with customer buying a ticket and ends with a pleasant travel experience. Setting the cost of the ticket has been based on the market SPA. The focus is keeping the same price, improving passenger experience and reducing the cost. Yes, this is a tough one for many airlines!
Looking at the standpoint of airline operations, we can see why they need to find quick solutions. The shifting failure options to this critical objective is limited to an airline shutting down. We have seen airlines fall off the grid in 2017, some of them were low cost. One of elements that airlines are looking into, is Inflight Entertainment. “It is the second most expensive part of the aircraft”. Inflight Entertainment shifted from being an optional to guaranteed offering beginning of 2009. Although it is labelled as an expensive offering, the actual cost on the passenger ticket does not exceed $4. This is the price of bring my customer back. Some airlines have also shifted their tender procurement processes with contractual objectives. They found that acquiring a lower price in a standard market price means one thing, reduction to the quality of deliverables. The impression of “pay peanuts, you get monkeys” has finally surfaced to become a reality check.
One company who has tremendously invested in cutting cost research techniques is Global ONE Media. The company is globally based has acquired 26 Million data entries from airlines around the globe to build its One Target database system. The database has gone through trials with 4 airlines and successfully reduced annual operational cost by 28%, improved content discernibility, improved airline brand and reduced customer complaints by 77%. “The system works. It is quite interesting to see how Global ONE Media changed the droning standards of content servicing through looking into other customs to get a better job done; the right way.”; Jonathan Barns commented from Aviation Association. He continued, “It looks complex and difficult; yet when you see them working on One Target you think, it is easy. The key is acquiring the correct data from the airline and the rest is straight forward.”
It is inspirational, vendors are sharing the dilemmas of Airlines. “Without Airlines, we lose our jobs”, Martin Devereux, Senior Operations Global ONE Media commented. “We give the airline the control. It is no longer a client/vendor relationship, it is partnership. We both work on same strategy, same goal. We do not just look at Inflight Entertainment, we focus around the cabin product as well. We aim to please passengers and we look at seriously at costs.”
One Target is currently on high demand. By contracting with Global ONE Media, airlines would also bargain for more than content service, they would be getting analytics data that would put them closer to their existing customers, perceptibility for potential customers and free consultations on all areas of cabin product, technical and procurement solutions.
For more information, contact Onemarketing@globalonemedia.aero