PREVIEW: Airline Sales Channel Forum

Industry to discuss new revenue streams: lively debate is expected as delegates meet to discuss "non-ticket" sources of revenue at the Airline Sales Channel Forum (ASC) in Miami, May 12-13.

The two day conference will run alongside the A-La-Carte Pricing Conference (ACP), in which airlines will explore "unbundling" costs traditionally included in their fares.

Airline Information (AI), an aviation consultant and publisher, is behind both events to be held at the Wyndham Miami Airport.

"Airlines have become virtual ‘flying stores' selling everything from travel/trip insurance and guidebooks to blankets and tours in order to generate ancillary revenues," said AI.

"At the same time, many suppliers and airline partners hope to capitalise upon this opportunity and work with airlines, and their ‘captive' audience of passengers, as a lucrative sales and distribution channel for their products and services."

ACP will focus on charging passengers for costs normally included in the cost of a ticket such as food, checking in and seat assignment.

"Un-bundling, or a-la-carte pricing, permits airlines to more fully price their services based upon cost and allows them to maintain or even increase the revenue generated per passenger, despite falling yields caused first by high fuel costs and now by lower demand," said AI.

The event will be opened by ASC chairman Allan Carson, ceo of NRG International, and Frank Socha, director of ATPCO and chairman of the ACP.

Delegates will hear three keynote sessions from Martin Collings of Amadeus, Barry Biffle, cmo of Spirit Airlines and Jay Sorensen, president of IdeaWorks, who once described Ryanair as the "godfather of ancillary revenue."

Graham Wareham of Air Canada, Paul Hesser of Travelport, Eurocommerce's ceo Alan Wyley and Andrew Swaffield, managing director of Air Miles are among the session presenters.

Delegates are expected from more than 90 organisations including British Airways, Qatar, Delta Air Lines and Star Alliance.

The event is also aimed at travel suppliers such as hotels, travel agencies and distribution services, said AI.

The conference could spark heated discussion as struggling airlines explore controversial "extra" charges.

At the National Business Travel Association's (NBTA) Business Travel Financial Forum in New York last month, much anger was directed at airlines over such charges (see Analysis: April 6).

ABTN readers will receive a 25% discount on delegate rates. Visit the website below and enter ‘ABTN' when prompted.

www.airlineinformation.org/AI_conferences/ASC2009/index.html