Travelport head of global supplier strategy Ian Heywood, speaking at the CAPA Australia Pacific Aviation Summit, noted (08-Aug-2013) a problem with IATA's New Distribution Capability (NDC) is that it is exclusive of LCCs, noting: "Not everyone member of IATA".
IATA NDC is exclusive of LCCs: Travelport
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Airline product differentiation to customers still in its infancy: CAPA Americas Summit (VIDEO)
Global airlines increasingly pursue the notion of de-commoditising their products in order to create a strategic level of differentiation. But the reality is that the concept of creating new airline customer value propositions remains in its infancy; airlines and other travel companies are still navigating the intricacies of determining how to deliver more differentiated passenger experiences.
Understanding passenger preferences is a huge piece of the puzzle to be solved as travel providers work toward greater product distinction and personalisation. At the same time, passenger preference for the lowest price will always dictate a high level of commoditisation within the travel industry.
The key for travel providers is finding the right balance, and most admit that they are far away from mastering the move from product commoditisation to personalisation. But some signs are emerging that the industry is achieving small moves in that direction.
LCCs in Latin America: Peru’s rise as an economic star could draw attention from potential operators
As Latin America attempts to climb out of a two year long recession, Peru has emerged as a bright spot in the region – based on air passenger growth and the country’s economic performance. For the seven months ending Jul-2016 Peru recorded 9% passenger growth to 11.2 million, driven by growth of 10.2% in the country’s domestic market.
Peru’s air passenger growth continues to remain promising, as the country’s largest airline – LATAM Airlines Peru – calculates that the country’s trips per capita are slightly below the still-emerging markets of Mexico, Colombia and Brazil, whose passenger growth potential should remain robust once the country’s economy begins to fully recover.
Periodically speculation arises over the potential opportunity for a low cost airline to break into Peru’s market. The country’s growth prospects certainly warrant examination of stimulative opportunities in Peru, but so far the country lacks a true low cost airline.