Digitalization of Duty-Free

Digitalization of Duty-Free

(In-flight) Duty Free transformation through digitalization broadens the retail appeal. A global content-driven affiliate network brings new players and a re-energized revenue potential worth billions of dollars.

In the digitally powered circular economy, business models focus on renewal, sharing and service. In the airline or air transportation business, affiliate marketing is becoming mainstream in order to reach all targeted customer groups and segments. As such, the shortest path to all customers and profitable growth is not a straight line particularly for duty free sales…

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How do low-cost carriers perform in times of crisis?

How do low-cost carriers perform in times of crisis?

With the global airline industry reporting billions in losses in 2008-2009, the crisis begged the question: how low-cost carriers were affected and how they coped with a drastically changing trading climate. In more mature aviation markets, such as North America and Europe, low-cost carriers were facing a multitude of challenges as their growth appeared to saturate with ever-increasing unit costs.

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Commercial Recovery: How To Avoid Blind Spots

Commercial Recovery: How To Avoid Blind Spots

Millennium Aviation Inc. released a case study of reviving an airline’s business model.

A Latin-American carrier was trending downwards, experiencing negative growth and increased losses.

After making a research on the situation, we have found 4 keys finding:

  • Loyal customers were the least profitable (on average 18% less than infrequent customers)
  • Ancillary services had no “stickiness” and did not generate sufficient revenues (2% of total revenues)
  • Average fares were 2% lower than market fares
  • Passenger growth was declining even though it had a competitiveschedule (2% points below market growth)

Find out how Millennium Aviation Inc. coached client to avoid the blind spots.

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How to monetize the entire customer experience path

Ricardo V. Pilon, Millennium Aviation Inc.’s CEO and his white paper “Monetize the Entire Customer Experience Path” have been featured on Blue Sky.

How to monetize the entire customer experience path

Business innovation and business transformation sound like vague buzzwords, but asking experts in the field you will find they consist of pragmatic projects that can deliver new profitable revenue in the immediate short-term.

Business transformation is least successful when companies are in commercial crisis mode, i.e., they need to initiate projects now as they get some tailwind. 95% of strategies that turn out to be the correct strategies fail because the delivery and the execution was not thought through and carried out properly.

See more at BlueSky.

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Cruising to Profits : The Synopsis

In Cruising to Profits (Volume 1 – Second Edition), a very thoughtprovoking book, strategic airline business transformation specialist and profitability expert Ricardo Pilon shares transformational strategies and tools he concludes would contribute to a fundamental shift in turning commercial aviation into a profitable business. Some radical, but necessarily drastic, views and methodologies are offered. The content is primarily based on his practical airline management and business consulting experience, but also combines results from the author’s academic involvement in airline economics with management science and leadership. The author introduces a threepillar visionary leadership framework BeProFit (BPF) that redefines the role of commercial aviation. They further discuss the human element in profitability and paves the way for the Human Capital Profit Multiplier and S.T.A.R, which are management tools that can be used as instruments. These are explained in Volume 2.

BeProFit (BPF) : WHAT visionary leadership framework and management methodology it would take to turn commercial aviation into a profitable business and HOW to apply a unique combination of business model expertise with modern convergent governance.

Lastly, Cruising to Profits offers valuable, actionable management tools so as to execute on the vision and include daytoday operations towards commercial airline strategy formulation. First in a series of eyeopener work, Cruising to Profits is a mustread for those at the heart of senior airline management and those who take a close interest in the business.

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