In the past three years，China’s airlines are facing severe profitability challenges，The reasons are as follows: fuel cost、Foreign exchange rate and market competition，Chinese airlines are losing the rapid market growth advantage they previously occupied。On the other hand，Global airlines, especially US airlines, have completed another round of mergers and acquisitions，And expand with great fanfare from traditional transportation services to 188bet best bookmaker-related services，This not only improved its profitability，At the same time, it also meets the increasingly personalized customer needs。

In the Chinese 188bet best bookmaker market，Internet giants and participants in related 188bet best bookmaker professional services are also ambitious，They use their unique advantages to influence every move of customers，And continue to gain the trust of passengers。Especially，They are trying to integrate 188bet best bookmaker with other industries using cross-industry tools/services，Including finance、Integration of games and consumer products。This will greatly open up the imagination of the 188bet best bookmaker business，And the competition at the front desk is becoming increasingly fierce。The 188bet best bookmaker ecosystem has become rapidly changing, complex and diverse。

From the perspective of the global aviation industry，Leading airlines are trying different strategies to cope with current challenges，And trying to avoid being pushed to the end of the industry value chain。By adopting digital technology and the Internet，Use our unique advantages to conduct open cooperation with partners across the 188bet best bookmaker industry and even across industries，Providing customers with more personalized and flexible services in addition to a single ticket is a key element to improving the market position。

If Chinese airlines hope to achieve a more favorable market position in the travel ecosystem，Airlines can try the following four integration measures: 1) Integrate digital strategy with corporate strategy；2) Integrate technology and business into an integrated operating model；3) Integrated products、Marketing、Sales and service as an integrated digital platform；4) Integrate aviation and non-aviation services into unified 188bet best bookmaker service management。

188bet best bookmaker profitability challenges

2013，The International Air Transport Association (IATA) announced that global air passenger traffic has reached 3.1 billion；About the same time，Announced by the Civil Aviation Administration of China (CAAC)，Domestic air passenger traffic has increased to 3.5.1 billion people。However，Behind such a huge number，The growth rate of passenger traffic in China’s air passenger transport market has slowed down significantly compared with the past，Only about 11% (for comparison，188bet best bookmaker number was 20% in 2009，16% in 2010)。

European debt crisis、Domestic economic structural adjustment and other factors have affected the growth of demand。further，The three major airlines are also feeling the pressure 188bet best bookmaker the slowdown in passenger traffic growth and the risk of shrinking profits or even losses。Annual report display，January-September 2013，Air China、The net profits of China Eastern Airlines and China Southern Airlines are 3 respectively.3%，2.7% and 1.9%，The net profits of American Airlines and Delta Air Lines were 5% and 7% respectively。

Compare to American Airlines，China’s domestic airlines’ profits are weak，To a large extent reflects the depreciation of RMB interest rates and high labor and fuel costs，And the fierce competition in the Chinese market，188bet best bookmaker has squeezed airlines that used to adjust prices to compete，Not to mention the profit pressure brought by the price war itself。

From the perspective of net profit margin，Even around the world，Large market-leading airline，The profit is also limited。Chinese airlines suffer from rising labor costs、Economic stagnation、Global airline competition and the impact of open skies policy，If one day government subsidies become "stingy"，Can China’s airlines solve 188bet best bookmaker development dilemma of low profit margins and sluggish growth？

To answer this question，We studied the basic characteristics of the products provided by airlines: airline 188bet best bookmaker are provided through a complex、A long process to deliver intangible products and 188bet best bookmaker，its profits are affected by oil prices、Airport location、Aircraft cost、The impact of labor costs, fierce competition and other factors，So profit stability is very thin and fragile。

In order to increase profits，Airlines may reduce 188bet best bookmaker operating costs，But doing so does not create new revenue opportunities，It will not change the business model，Because costs cannot be reduced endlessly。Airlines must develop products that create higher profits、New revenue source。

About 5 to 8 years ago，Major American airlines have begun to adjust their traditional service and product strategies，More aviation add-on 188bet best bookmaker have been developed to ease profit pressure and achieve significant benefits，While avoiding the price competition pressure brought by low-cost transportation companies。These experiences revealed three key insights:

(1) No additional 188bet best bookmaker/products added，The pressure on airlines to have negative net profits is very obvious，Therefore additional 188bet best bookmaker and their benefits are very important to airlines；

(2) The net profit margin of additional 188bet best bookmaker is usually much higher than the net profit margin of the ticket product itself，So it is very helpful to improve profitability；

(3) Additional 188bet best bookmaker/products help airlines provide customers with personalized 188bet best bookmaker in addition to ticket 188bet best bookmaker，Increased customer satisfaction while improving profit margins。

Profit structure display of 188bet best bookmaker ecosystem，Compared to other players in the ecosystem，Airlines are under the greatest pressure on profitability，Travel agencies (including online travel agencies) earn the largest net profits。The reason is simple: customers value more intelligent and personalized travel suggestions and one-to-one user experience，Instead of a shipping company that just transports them from point A to point B。

Therefore，They tend to spend more on travel services，Not just air tickets or hotel rooms，This has resulted in a significant net profit difference between the upstream and downstream members of the 188bet best bookmaker industry value chain。If the airline wishes to develop additional revenue opportunities，And increase their own profits，They need to explore and expand service areas within the entire industry，To increase their share of passenger spending。

188bet best bookmaker Ecosystem

The traditional 188bet best bookmaker ecosystem and value chain are relatively stable，Customer choices provided are also relatively limited。With the rise of the Internet，Service providers discover a new way to communicate with customers，They can communicate directly with customers without intermediaries。As customers gain more initiative through digital devices，Their behavior is also undergoing unprecedented changes。

The Internet is much more than a simple sales channel，The Internet, especially wrapped by mobile and social media networks, is now dominating the way people communicate。No development of 188bet best bookmaker technology，The ecosystem will not transform to be as prosperous as it is today。This change occurred rapidly in a very short period of time，And will continue to develop and move forward unstoppably。

Therefore，Any effective analysis must look at the impact of mobile Internet and social networks on user behavior in the future，Not just focusing on the current status quo，To prepare for the continuous 188bet best bookmaker transformation in the integration of business and technology。

Figure 3: Evolution of the 188bet best bookmaker industry value chain

Let’s first consider and define the 188bet best bookmaker ecosystem。The 188bet best bookmaker ecosystem consists of interdependent actors that make up the 188bet best bookmaker value chain。In the past，Due to information opacity and technical barriers，Travel service provider - airline、Hotel、Travel agencies control most of the value chain，And holds significant bargaining power，Therefore，Historical ecosystems consisted of clear upstream and downstream sectors，Difficulty providing or receiving personalized service，Especially from the perspective of travelers’ personalized needs。

However，Internet、The rapid development of mobile and social networks has gradually broken down information barriers，Service providers can easily access customers。Previous，Profitability of the value chain is provided by airlines、Shared by Global Distribution System (GDS) and offline tour operators，Today’s Internet technology and online 188bet best bookmaker providers have completely changed this situation。

In this complicated network，Especially in China，The booming value chain gradually covers travel aspirations、Plan、Product Search、Booking、Destination Services、En route services and post-trip advice，In other words，A comprehensive，Mesh，A changing 188bet best bookmaker ecosystem is increasingly taking shape，And began to subdivide the service methods from different angles，Even in a fragmented way，See the picture below for details。

Figure 4: Composition of China’s online 188bet best bookmaker ecosystem

In the ecology of China’s 188bet best bookmaker Internet, Baidu must be mentioned，Ali，Tencent and Ctrip，commonly known as BATX。It can be seen from the market layout of BATX，In this 188bet best bookmaker ecosystem，The online travel market presents a colorful and complex appearance。

Between 2013 and 2014， BATX has built its own 188bet best bookmaker platform through capital operation，And acquired different components，Includes Baidu’s search function、Alibaba’s sales function，And Tencent’s social media as an entry point，Then develop its own unique 188bet best bookmaker ecosystem -- which can not only create more value for consumers，At the same time, it can also increase the profits of the partnership。This type of cross-industry collaborative strategy can often obtain more market success factors。

Figure 5: BATX online 188bet best bookmaker ecosystem

Today’s travelers have more choices than ever before throughout 188bet best bookmaker journey，Because there are so many professional service providers at your fingertips，They provide tailor-made products，To cater to customers’ needs in different aspects。The strategy of “remaining unchanged in response to all changes” will no longer be effective；It has been replaced by a “to each his own needs” model，So that tourists can meet 188bet best bookmaker own personalized needs during the trip。

Obviously，Airlines cannot provide all services on their own，Digital and Internet technologies provide the possibility for horizontal expansion of 188bet best bookmaker resources，Airline、Partner、Various travel service providers can use this to provide customers with a complete set of services or a menu-based charging service model，Thus increasing the airline’s revenue and profits while further enhancing passenger satisfaction and loyalty。

Figure 6: Evolution of 188bet best bookmaker models

In such an environment，Airlines are facing unprecedented pressure，Regarded as a “mere carrier”，And had to rely on price war to compete，This means that they are handing over high profits to online 188bet best bookmaker suppliers。Airlines’ bargaining power is weakening，Their profits are constantly being squeezed to the limit。Although traditional airlines strive to establish a competitive advantage in the current Internet-dominated environment，But relying solely on traditional route resources and a single product and service model can no longer support it。What is the future prospect of airlines？

The changes of airlines that have the courage to practice

American Airlines (AA)，The "inventor" 188bet best bookmaker computer reservation system。The company has previously innovated information technology related to airlines，Developed the first host-based air ticket booking system，and eventually developed into Saber (a global distribution systems company)。

In today’s new digital world，American Airlines is still trying various ways to innovate，For example, it strives to use the Internet to create a multi-service sales model directly connected to 188bet best bookmaker agencies，Thereby gradually changing its distribution and product mix model。

Through this build，American Airlines could sell more add-ons，And the flexibility to sell American Airlines-exclusive products、188bet best bookmaker packages and 188bet best bookmaker services，This in turn increases its revenue and mitigates the negative impact of the decline in its traditional ticketing revenue。Therefore，American Airlines improves its bottom line，It can also provide customers with more personalized services，Includes those services available through its own direct sales digital channels。

Delta Airlines is committed to adopting new digital technologies，To enhance the 188bet best bookmaker experience on Delta Air Lines across all touchpoints，Thus increasing the value of customers purchasing Delta。In the entire full-process service link，Delta provides customers with customized products and value-added services，Thus creating more revenue for Delta，At the same time, it can also improve customers’ 188bet best bookmaker experience。This key strategy helps Delta increase revenue by selling high-margin ancillary services，Ultimately will improve financial performance。

Irish Ryanair is proving to the industry，Airlines can make deeper changes by injecting internet/digital technologies into their business models。As an airline known for its low cost，Ryanair leverages its large passenger volumes and the low prices of its standard product (i.e. air tickets)，Actively provide customers with 188bet best bookmaker services other than air tickets。

2013，The sales of additional products account for 22% of the company's total revenue (note: data source IATA) - this is a very astonishing ratio for an airline of this size。At the beginning of 2014，Ryanair and Google enter into a strategic agreement，Working together to build Google flight search (GoogleFlightSearch），Aims to bundle Ryanair products with Google’s search capabilities，Produce a more intelligent 188bet best bookmaker service experience。

The above examples fully demonstrate，Airlines are taking a different strategy，To embrace digital trends and meet the challenges of new 188bet best bookmaker ecosystems。Despite the pressure of business operations and the burden of existing heavy assets，Airlines still have a unique advantage: they maintain frequent relationships with customers、Face-to-face contact，Because during the long journey，Interactive experience is an inherent requirement of 188bet best bookmaker services。

Just like American Airlines、Practice and innovation demonstrated by Delta Air Lines and Ryanair，Airlines as “legacy carriers” are leveraging their core strengths，Create more opportunities for yourself to interact with customers throughout the journey，And generate more effective 188bet best bookmaker and revenue opportunities。Especially the following two aspects:

Figure 7: Examples of 188bet best bookmaker strategies from leading airlines

1) The Internet and digitalization must be integrated into the airline’s operating model and business model，Instead of just stopping at having better choices。For American Airlines、For Delta Airlines and Ryanair in the United States，40%-75% of its sales come from Internet 188bet best bookmaker channels。Whether the airline wants to accept it or not，Internet functions will determine airline strategies and market competition and transformation。

2) Whether digitalization means opening up their inherent channels to increase revenue (like American Airlines)、Create more valuable services to increase profits (such as Delta Airlines in the United States)，Or provide more integrated 188bet best bookmaker services (such as Ryanair) for a large number of "low-price" passengers，Airlines must optimize their corporate competitive strategies，Gradually integrate digitalization into their genes。

Embrace 188bet best bookmaker transformation and innovation

Can airlines lead the 188bet best bookmaker ecosystem and share a bigger piece of the pie together？The answer depends largely on how the airline will make full use of its traditional advantages，and better integrate it with new digital trends。IBM proposes the following four “digital integration” measures that airlines can adopt，Powering the digital transformation of airlines。

1) Integrate 188bet best bookmaker strategy and corporate strategy

Airlines must re-examine their corporate strategies，To assess how new trends are impacting their overall corporate strategy and business model。Airline customers possess a large number of 188bet best bookmaker “weapons”，There is more information than ever before。

Therefore，Airlines need to improve their strategies，Rather than just adding some technical components to its operations；Digital transformation is not just about technological progress，But an actual change in customer behavior patterns。In addition，Airlines need to be open-minded to develop their own new business models in the digital environment，Because the increasing number of tourists is only the first step。Airlines should seize and capitalize on the huge business opportunities throughout the travel journey，Thereby creating 188bet best bookmaker-related revenue streams。

Figure 8: 188bet best bookmaker low profit to high profit

2) Integrate technology and 188bet best bookmaker into an integrated operating model

Previous，Information technology and business lines are relatively isolated in airlines，Technology is basically behind the scenes，And often lags behind business needs，Rarely respond to the market in "real time"，Business needs sometimes even require long gaps to be technically supported。And today，Such business demand realization efficiency obviously cannot satisfy customers who are already armed with 188bet best bookmaker technology。

Airlines need to become more agile and increasingly technology-driven。From this perspective，Previously separated technology departments and 188bet best bookmaker lines need to be quickly integrated，Meet and even drive customer needs，No need to go through the cumbersome traditional IT and 188bet best bookmaker communication process。Today’s 188bet best bookmaker has begun to be digitized，It is no longer possible to clearly distinguish the boundaries between technology and 188bet best bookmaker。If the two are still separated，Airlines will be doomed to fail to meet today’s powerful、The rapidly changing needs of customers armed with technology。

Figure 9: Integrated 188bet best bookmaker operations organizational structure

3) Integrated products、Marketing、Sales and service as an integrated 188bet best bookmaker platform

The four main functions of airlines - product management、Marketing、Sales and Service，Traditionally operated by four departments，And there is a lack of transparent information sharing between departments，Partly because their integration would be expensive and complex。Therefore，Customer experience management and the company's operational service strategy are often not coordinated。In the 188bet best bookmaker world，The Internet and mobile communication technology make information integration more convenient and faster。

Accordingly，Airlines need to establish a system that can provide customer information、Products and 188bet best bookmaker、Marketing activities、Integrated platform for promotional activities and transactions，And centralize all service delivery information，Realize information sharing across four major functions。Constitutes an integrated platform and centralized data repository to support the airline's organizational structure integration，To truly improve the ability to respond quickly to market and customer needs。

Figure 10: Integrated business functions and 188bet best bookmaker platform

4) Integrate aviation and non-aviation services into unified 188bet best bookmaker service management

Previous，Airlines focus more on air tickets when designing aviation products，Instead of looking at the entire travel process from the customer’s perspective。Today，With the development of digital technology，Airlines can more easily integrate various travel resources and establish partnerships with them，For example, car、Hotel、Destination travel and other 188bet best bookmaker-related services。Therefore，When today’s airlines design their own products，They can use digital platforms with strong integration capabilities，Realizing end-to-end service products，Then we can promote different product and service combinations to customers with different values。

Figure 11: Extending services to the 188bet best bookmaker ecosystem

Airlines face a changing world、Unstable business environment、And customers who are increasingly striving for excellence。Nevertheless，We have reason to believe that airlines can still rely on 188bet best bookmaker inherent advantages，Keep a firm grasp of the process of serving and interacting with customers，Then expand the service horizontally，Not just transporting passengers from A to B。

Because，For airlines in a complex travel ecosystem，The answer is obvious: they want to stick to a single air carrier business，Earn low profits？I still prefer to be an innovator in the 188bet best bookmaker market，Bring more value to passengers while obtaining higher business profits？

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