The current average passenger load factor of domestic full-service 188bet game is between 80% and 85%，The average passenger load factor of Spring 188bet game, the most successful low-cost airline in China, is over 95%，The new operating model of low-cost 188bet game can bring a lot of inspiration to full-service 188bet game。This article discusses why full-service 188bet game must sell additional service products from the perspective of aviation revenue management and product and pricing strategies，Combined with the latest NDC standard of the International Air Transport Association (IATA)，Gives a feasible path to realize the modern aviation e-commerce strategy。

The aviation industry is the pioneer of e-commerce。Two Mr. Smiths more than 60 years ago (one is the president of American 188bet game AA C. R. Smith，The other is IBM salesman Blair Smith) met and collided on a plane - Sabre，Semi-automated business search environment - changing the global aviation distribution model: by 1965, the Saber system could handle 7,500 passenger ticket booking requests per hour。It seems now，This model is "e-commerce"，Therefore, the history of applying e-commerce in the air ticket industry has exceeded 50 years。The good news is that the airline industry has more e-commerce than all other industries，Including the retail industry, it appeared early and was once in the lead，But the bad news is the distribution model of full-service 188bet game over the past 50 years，In other words, the air ticket e-commerce model has not changed significantly。

With the rapid development of IT (including hardware and software) in recent years，Internet/Mobile Internet、Cloud computing、The emergence of new technologies such as big data and the Internet of Things，Enable other industries, especially retail e-commerce to achieve rapid development，Created many new patterns；The OTAs follow closely behind，Attract tourists with air ticket products，Creating an e-commerce platform for air travel，Through various innovative marketing，Leave traditional 188bet game far behind。However, 188bet game are not far behind，I will not sit back and watch the most profitable part of the ticket distribution ecosystem be taken away by OTAs，So the strategic goal of (to) retail transformation was proposed。Retail transformation is a word that is prone to ambiguity，The author himself understands the meaning of this word this way:Retail transformation means that the aviation industry should learn from the retail industry’s entire approach to establishing and operating 188bet game platforms，Not just simply online、Selling T-shirts and razors on mobile phones or on airplanes。

The first step to establish and operate an 188bet game platform is toClassify passenger needs. Theoretically, there are two methods of demand segmentation,

First, the price difference，That is, for the same or similar 188bet game with the same production cost，Charge different prices based solely on customers’ “willingness to pay”；

The other is product differences，refers to charging different prices for services of different qualities and 188bet game with different costs resulting from them。

Traditional 188bet game have adopted the above two methods in practice: specifying different prices for the same economy class products is a means of price differentiation，Set usage restrictions for economy class products (such as purchasing tickets in advance、Minimum stay time、Fees for refunds and changes, no endorsement, etc.) are methods of product differentiation。But with the development of Internet e-commerce，Vertical search engine、Wide use of price comparison websites，More transparent information，Traditional constraints (such as point of sale POS controls，Charges for refunds, changes, etc.) are not enough to effectively distinguish customer needs，As a result, more and more customers with high willingness to pay are purchasing low-priced products，Greatly affects the overall revenue of 188bet game。

At this time，Bundling of additional service 188bet game is a good complement to traditional restrictions。Economy class air tickets meet core needs，That is, the displacement service from point A to point B，Additional service 188bet game are on time、Comfortable needs；Give an example，The lowest priced ticket needs to be purchased in advance and does not have any other services，Attracts travelers who only need mobility services but are unwilling to pay for additional services；And full/high-price tickets include VIP lounges、Seat selection and free checked baggage of 20 kg、Free rescheduling service once，Meeting not only displacement requirements，And pursue customer needs of decency and comfort。This is the first major reason why full-service 188bet game must sell add-on products。

At present, the air ticket itself has become a highly standardized "standard product"，Full-service 188bet game often offer the same services，Only selling air tickets will inevitably fall into the quagmire of homogeneous competition，The available means of competition is to fight for routes、Let’s see who has the best time、There are only a few ways to engage in price wars。In the past few years, Spring and Autumn and Jixiang each obtained a pair of moments on the Beijing-Shanghai route，But because the time is either too early or too late，Canceling after half a year due to poor operating efficiency is an example。So how to solve the problem of customers only focusing on ticket prices？Spring 188bet game started as a travel agency - selling one-stop air travel products，The passenger structure from the beginning of 70% group + 30% individual passengers to the current 70% individual passengers + 30% group，The average passenger load factor always remains above 95% and is guaranteed to be profitable every year，Actually by unbundling additional services from the ticket (such as meals、Free baggage、Seat space and seat selection, etc.) - so that the price of the ticket itself can be very low - and then bundle additional services and non-aviation products with the ticket (static bundling constitutes a package product: Fare Family or Branded Fare，Dynamic bundling is a la cart，Menu selection or random combination of products) sales，Meet the different needs of customers with different willingness to pay。188bet game is the second main reason。

Today both OTA and air travel e-commerce platforms understand a truth，I just sell air tickets and don’t make money，Profit mainly comes from selling ancillary products (such as insurance、Ground transportation、Airport parking) and non-aviation products (hotels、Car rental、Commission for attraction tickets)。This principle is also valid for 188bet game，It is predicted that global aviation ancillary revenue will reach US.2 billion in 2015，Among themDirect revenue is approximately US.7 billion，Indirect income of approximately US.5 billion，The former mainly consists of meals、Luggage、Seat selection、Priority security check/passage etc.，The latter is mainly composed of frequent flyer points transactions and non-airline product commissions。188bet game is the third main reason。

For e-commerce operations in the aviation tourism industry, air tickets are the entrance。All passengers (including individual travelers and travel agencies) first look for air tickets when specifying travel plans，You will only look at other products after booking a flight。From this perspective，188bet game have mastered the core resources of Internet-based aviation and travel e-commerce，i.e. "traffic" and "entrance"。E-commerce operations in the retail industry must use advertising in order to obtain traffic、Activity、Burn money to attract traffic，And 188bet game have core resources，Has innate advantages。But air tickets alone are not enough to build an ecological environment for aviation and travel e-commerce，By combining additional service 188bet game and non-aviation 188bet game，For different needs、Provide customized or personalized services for travelers with different willingness to pay，Improve customer loyalty and stickiness。This is the fourth main reason。

The hype mentioned above，Then the question comes。How to realize the package sales of additional service products and non-aviation products，But also be flexible、Can cover all channels、Small IT system transformation、It can also solve the problem of Interline sales between 188bet game？The answer is the latest NDC (New Distribution Capability) standard being promoted by the International Air Transport Association (IATA)。

The NDC standard is a set of data communication standards based on XML (Extensible Markup Language)，Proposed a new 188bet game direct distribution model，Able to achieve:

①Omni-channel sales of air tickets、Additional service 188bet game and non-aviation 188bet game；

②Use rich media (pictures、animation、Video or VR/AR) display of 188bet game；

③188bet game are statically packaged and sold in random combinations;

④Identify customer identity，Personalized product solutions，i.e. dynamic packaging and dynamic pricing；

⑤Mutual sales between 188bet game，No need to resort to third parties or Codeshare。NDC standards require 188bet game to have e-commerce platforms—Merchandising systems。

The system consists of two parts:

One is the product management system，Sub-module includes 188bet game ticket/auxiliary inventory management，Freight rate management，Packaging management, etc.，The function is to dynamically construct Offer；

The second is the Shopping system，The function is to let customers see the Offers provided by the airline。On top of the Merchandising system，Whether using NDC standard interface or not，188bet game can achieve direct channels (188bet game B2B、Official website、Official APP/WeChat Marketing、ATO、CTO、CC, etc.) and indirect channels (GDS、Direct connection to agent、Omni-channel e-commerce marketing for content aggregators。

On October 19, IATA WPS (Global Passenger Forum) passed Resolution 797, the resolution of the One Order project，marks that the 188bet game data model and unified order management standards supporting NDC have entered the standard formulation stage。。

*188bet game article is reproduced from IT Travel Circle.

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