Airline firms to reach to the mass level and their better promotion used ticketi

Question

Airline firms to reach to the mass level and their better promotion used ticketing through third parties like expedia etc.

Pros are

-It brings savings for the firm because the technology and maintainance of database and passengers are done by the third parties.

- Customer relationship management become better because third parties provide discount in booking and other amneties like free meal, baggage allowance etc.All these matter most to the people and the company earn soft dollar that is goodwill from the customers.

-The task of customer relationship and attending to various querries of the customers are dealt by the third parties.It absolve the company from a herculen task

-It promote the airline in better way because the third party providers promote themselves through various offers which inturn materialize for the airline company too.

-It helps more penetration of customers and the airine industry which inturn helps the airline in increasing market size and customer base.

Cons

-Contracted fares aren't always the best fares because the fare prefered by the airline is not available at the time of booking.

-Cost of contracting is also high.The company has to sweat a lot to negotiate the contract with the third parties.They charge significantly as their margin.

Airlines don't count all air spend because some charges in tickets like surcharge, baggage charge etc are inflatted by the third parties to the customers.

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Explanation / Answer

Discuss the pros and cons of using third parties to market airline tickets.

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