Comments on: Singapore Airlines’ impasse with Flight Center – and what it means for the brand http://simpliflying.com/2009/singapore-airlines-impasse-with-flight-center-and-what-it-means-for-the-brand/ Helping airlines & airports engage travelers, profitably Sun, 22 Apr 2012 04:02:10 +0000 hourly 1 By: davidbaer http://simpliflying.com/2009/singapore-airlines-impasse-with-flight-center-and-what-it-means-for-the-brand/comment-page-1/#comment-3419 davidbaer Thu, 04 Feb 2010 11:40:29 +0000 http://simpliflying.com/?p=1309#comment-3419 Having been a part of the Online Universal Work Marketing team for 4 months now, I’m thankful for my fellow team members who have patiently shown me the ropes along the way and made me feel welcome<br><br><a href="http://www.onlineuniversalwork.com" rel="nofollow">www.onlineuniversalwork.com</a> Having been a part of the Online Universal Work Marketing team for 4 months now, I’m thankful for my fellow team members who have patiently shown me the ropes along the way and made me feel welcome

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]]> By: davidbaer http://simpliflying.com/2009/singapore-airlines-impasse-with-flight-center-and-what-it-means-for-the-brand/comment-page-1/#comment-3418 davidbaer Thu, 04 Feb 2010 11:39:45 +0000 http://simpliflying.com/?p=1309#comment-3418 Having been a part of the Online Universal Work Marketing team for 4 months now, I’m thankful for my fellow team members who have patiently shown me the ropes along the way and made me feel welcome<br><br><a href="http://www.onlineuniversalwork.com" rel="nofollow">www.onlineuniversalwork.com</a> Having been a part of the Online Universal Work Marketing team for 4 months now, I’m thankful for my fellow team members who have patiently shown me the ropes along the way and made me feel welcome

http://www.onlineuniversalwork.com

]]> By: Shashank Nigam http://simpliflying.com/2009/singapore-airlines-impasse-with-flight-center-and-what-it-means-for-the-brand/comment-page-1/#comment-2254 Shashank Nigam Fri, 05 Jun 2009 17:18:29 +0000 http://simpliflying.com/?p=1309#comment-2254 @Penn, @John: It turns out that the dispute is really Flight Center asking for 8% commissions for recommending SIA as their "preferred partner". And noticing from the past, I don't think SIA is going to bend their back. They didn't when they had a tussle with the Indian travel agents, and they're unlikely to now. @Penn, @John: It turns out that the dispute is really Flight Center asking for 8% commissions for recommending SIA as their “preferred partner”.

And noticing from the past, I don’t think SIA is going to bend their back. They didn’t when they had a tussle with the Indian travel agents, and they’re unlikely to now.

]]> By: John Vincent http://simpliflying.com/2009/singapore-airlines-impasse-with-flight-center-and-what-it-means-for-the-brand/comment-page-1/#comment-2253 John Vincent Fri, 05 Jun 2009 17:17:59 +0000 http://simpliflying.com/?p=1309#comment-2253 Keep in mind that Flight Centre is also FCm Corporate Travel. Flight Centre/FCm will continue to ticket SIA due to coprote agreements out there. I don't know the what went on with these two companies, but if it is anything like what has gone in the past with other "ticketing" locations it has a lot to do with commissions and back-end overrides. Also, SIA doesn't offer the lowest fares in economy, and from what I understand that is a lot of what the Flight Centre brand sell. Keep in mind that Flight Centre is also FCm Corporate Travel. Flight Centre/FCm will continue to ticket SIA due to coprote agreements out there. I don’t know the what went on with these two companies, but if it is anything like what has gone in the past with other “ticketing” locations it has a lot to do with commissions and back-end overrides. Also, SIA doesn’t offer the lowest fares in economy, and from what I understand that is a lot of what the Flight Centre brand sell.

]]> By: Penn Lewis http://simpliflying.com/2009/singapore-airlines-impasse-with-flight-center-and-what-it-means-for-the-brand/comment-page-1/#comment-2252 Penn Lewis Fri, 05 Jun 2009 17:17:17 +0000 http://simpliflying.com/?p=1309#comment-2252 misunderstandings happen all the time. If SIA wants/needs the busines, they will bend. misunderstandings happen all the time. If SIA wants/needs the busines, they will bend.

]]> By: Ronald Kuhlmann http://simpliflying.com/2009/singapore-airlines-impasse-with-flight-center-and-what-it-means-for-the-brand/comment-page-1/#comment-2245 Ronald Kuhlmann Fri, 05 Jun 2009 16:54:10 +0000 http://simpliflying.com/?p=1309#comment-2245 This is not a brand issue but a sales policy issue. In order to assess its effect on sales, we would need to know what price Flight Center was extracting for SQ bookings. As a former airline sales manager, I can attest to the fact that there are agencies and corporate clients that demand conditions that make transactions a losing proposition. If the brand is as strong as they believe, passengers will continue to use the SQ product. If not, it once again proves that market forces and price trump brand loyalty and undermine the concept that a strong brand is key to success. This is not a brand issue but a sales policy issue. In order to assess its effect on sales, we would need to know what price Flight Center was extracting for SQ bookings. As a former airline sales manager, I can attest to the fact that there are agencies and corporate clients that demand conditions that make transactions a losing proposition.

If the brand is as strong as they believe, passengers will continue to use the SQ product. If not, it once again proves that market forces and price trump brand loyalty and undermine the concept that a strong brand is key to success.

]]> By: Gregg Saretsky http://simpliflying.com/2009/singapore-airlines-impasse-with-flight-center-and-what-it-means-for-the-brand/comment-page-1/#comment-2227 Gregg Saretsky Fri, 05 Jun 2009 15:27:37 +0000 http://simpliflying.com/?p=1309#comment-2227 SQ has a strong brand and a loyal following. Flight Center caters to the price-sensitive, brand agnostic travelers. Anyone interested in the SQ brand will find them at other agencies or online. Low yield sales may take a temporary hit but I wouldn't count SQ out! SQ has a strong brand and a loyal following. Flight Center caters to the price-sensitive, brand agnostic travelers. Anyone interested in the SQ brand will find them at other agencies or online. Low yield sales may take a temporary hit but I wouldn’t count SQ out!

]]> By: Who's greedy http://simpliflying.com/2009/singapore-airlines-impasse-with-flight-center-and-what-it-means-for-the-brand/comment-page-1/#comment-2211 Who's greedy Wed, 03 Jun 2009 22:52:35 +0000 http://simpliflying.com/?p=1309#comment-2211 The issue with FCI and SQ boils down to the renumeration that SQ pay FCI HQ on flown revenue incentives and other backend deals. FCI have always been very agressive in these negotiations and I guess that SQ has said enoughs enough. FCI need to be able to prove that they can influence the sale at the coal face and move market share. FCI has always had a Price Beat Guarantee policy and this creates massive pressure on the FCI fare team to negotiate the best nett fare deal. Maybe SQ has an issue with funding a marketing stand by a retailer. Bear in mind that FCI are just as agressive with the other key carriers in the Aus market and in the end if they keep playing the same game with every airline then how can they guarantee greater market share to each airline without robbing business from the other carriers. The distribution policy of SQ has always been to ensure that they do not become too reliant on one distrubuter. Maybe FCI is a victim of its own success. The issue with FCI and SQ boils down to the renumeration that SQ pay FCI HQ on flown revenue incentives and other backend deals. FCI have always been very agressive in these negotiations and I guess that SQ has said enoughs enough. FCI need to be able to prove that they can influence the sale at the coal face and move market share.

FCI has always had a Price Beat Guarantee policy and this creates massive pressure on the FCI fare team to negotiate the best nett fare deal. Maybe SQ has an issue with funding a marketing stand by a retailer. Bear in mind that FCI are just as agressive with the other key carriers in the Aus market and in the end if they keep playing the same game with every airline then how can they guarantee greater market share to each airline without robbing business from the other carriers. The distribution policy of SQ has always been to ensure that they do not become too reliant on one distrubuter. Maybe FCI is a victim of its own success.

]]> By: Shashank Nigam http://simpliflying.com/2009/singapore-airlines-impasse-with-flight-center-and-what-it-means-for-the-brand/comment-page-1/#comment-2177 Shashank Nigam Fri, 29 May 2009 04:55:19 +0000 http://simpliflying.com/?p=1309#comment-2177 @Steve: The Moscow-Houston route was tactically positioned toward the "oil-crowd", especially folks going from ex-Russian countries to Houston, since they can connect conveniently in Moscow. One of the reasons SQ is lobbying hard for Aus-US routes is because the great brand recognition they have in both these countries, but most of the pax are unable to fly via Singapore on that route. Hence, they can offer a premium product and service and tap on the high-end market there. But you're right, competition is only getting tougher. @Steve: The Moscow-Houston route was tactically positioned toward the “oil-crowd”, especially folks going from ex-Russian countries to Houston, since they can connect conveniently in Moscow.

One of the reasons SQ is lobbying hard for Aus-US routes is because the great brand recognition they have in both these countries, but most of the pax are unable to fly via Singapore on that route. Hence, they can offer a premium product and service and tap on the high-end market there. But you’re right, competition is only getting tougher.

]]> By: Steven Frischling http://simpliflying.com/2009/singapore-airlines-impasse-with-flight-center-and-what-it-means-for-the-brand/comment-page-1/#comment-2160 Steven Frischling Tue, 26 May 2009 20:16:58 +0000 http://simpliflying.com/?p=1309#comment-2160 "Down under, in Australia, SIA has been lobbying to fly the coveted Sydney-USA routes for some time now." The more SIA lobbies for the US-SYD route, the more I wonder why they want it. SIA flies multiple routes from the US to foreign countries, with Houston-Moscow probably appearing to be the most unusual, however the US-SYD route is not only crowded with four airlines currently flying LAX-SYD, but its sustainability is questionable. By the summer LAX-SYD will be serviced by Qantas, V Australia, United and Delta. This route is also serviced by Air New Zealand via AKL. Passenger loads are not what they used to be and eventually this route will most likely drop back down to three (inclusing NZ) carriers again. I understand SIA is in search of global domination, and they are well on their way, but the metrics of USA-OZ are not what they once were and need to be reevaluated. Steven Frischling Founder The Travel Strategist Web: http://www.thetravelstrategist.com Blog: http://www.flyingwithfish.com Twit: http://www.twitter.com/flyingwithfish “Down under, in Australia, SIA has been lobbying to fly the coveted Sydney-USA routes for some time now.”

The more SIA lobbies for the US-SYD route, the more I wonder why they want it. SIA flies multiple routes from the US to foreign countries, with Houston-Moscow probably appearing to be the most unusual, however the US-SYD route is not only crowded with four airlines currently flying LAX-SYD, but its sustainability is questionable.

By the summer LAX-SYD will be serviced by Qantas, V Australia, United and Delta. This route is also serviced by Air New Zealand via AKL. Passenger loads are not what they used to be and eventually this route will most likely drop back down to three (inclusing NZ) carriers again.

I understand SIA is in search of global domination, and they are well on their way, but the metrics of USA-OZ are not what they once were and need to be reevaluated.

Steven Frischling
Founder
The Travel Strategist
Web: http://www.thetravelstrategist.com
Blog: http://www.flyingwithfish.com
Twit: http://www.twitter.com/flyingwithfish

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