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Háskólinn í Reykjavík > Samfélagssvið / School of Social Sciences > MSc Viðskiptadeild (og Klínísk sálfræði -2019) / Department of Business Administration >

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  • Titill er á ensku Exploring airlines and travel trade bilateral contingencies : the managers and travel trade views
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    The relationships between the airline industry and the travel trade have been exposed to unforeseen consequences of the Covid-19 pandemic. Unstable circumstances combined with rapid changes in travel conditions and restrictions have brought air travel to a virtual standstill. The decline in demand led both sides to reconsider their cooperation. In effect, for some airlines the remaining demand moved further to their direct sales channels and away from the undirect channels used by the travel trade, and for some partners it meant closing their business indefinitely. Concurrently, previous years have seen the market
    disturbed by distribution channels issues, primarily due to the obsolescence of the standardized distribution technology used worldwide since before the advent of the internet. Nevertheless, travel trade allies have historically proven to be crucial to small airlines businesses, such as Icelandair. In addition, along with the pandemic fluctuations, data shows that the travel trade customers are to consider in the ramp-up towards the return of higher travel rate. Taking into consideration the holistic nature of business-to-business exchanges, this paper explores the existing marketing and mutuality relations between the airline and its travel trade customers by applying the Theory of the Marketing Firm. Two studies are conducted to investigate which exchanges and non-exchanges bilateral contingencies between the firms are the most significant. The first study consisted of interviews with key managers at Icelandair to understand which strategic elements of the exchanges their marketing mix focuses on. The second study included a survey and a CBC analysis directed at travel trade professionals. The findings reveal that the service element is a cornerstone in relations and that the distributions channels are used differently by the travel trade, having mostly leisure customers than business ones. These results, among further insights, can be used by airlines to establish future marketing strategy regarding their relations with the travel trade.
    Keywords: Theory of the Marketing Firm, bilateral contingencies, travel industry,
    airline industry

  • 14.2.2022

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