Universal Journal of Management Vol. 9(2), pp. 52 - 61
DOI: 10.13189/ujm.2021.090204
Reprint (PDF) (336Kb)


Strategies Adopted by Airlines to Sustain Ticket Sales Performance Post the Zero Commission Policy: A Case of Kenya Airways (KQ)


Judy Kibe *, Hellen Ogutu , Wesley Kasanzu
School of Tourism, Hotel and Events Management, Moi University, Kenya

ABSTRACT

The deregulation act has dramatically transformed the tourism distribution system since its inception in 1978. Deregulation act came up as a way to liberate the airline world from the entanglement of restrictive operating structure; this gave in the idea of cost cutting that negatively impacted the airlines and the travel agencies and slowly created a distribution gap. It also paved way to new operating environment; airline loss of goodwill among travel agents, introduction of low-cost no-frills carriers that tightened the competition cords, increased fuel prices and customer demands among others. The paper aimed at assessing the strategies adopted by Kenya Airways to sustain ticket sales post the zero commission policy. It specifically sought to establish the influence of yield management, internet and branding on determining ticket sales performance. The study employed survey design targeting Kenya airways sales staff and travel agents. The research instruments used were interviews and questionnaires. Descriptive statistics were used for data analysis. The results of the study established that Kenya airways depended on yield management in order to maintain their ticket sales management. The yield management strategy adopted includes focusing on corporate clients, price discrimination and cross selling. Further, internet with 60% presents the best alternative for airlines to bypass travel agencies in contacting their customers. Alliances such as sky team membership had also facilitated a large customer base for the airline. Kenya Airways focuses on corporate travellers and takes advantage of the hub and spoke system provided by JKIA to reroute passengers from other destinations that use airlines that are in the Sky team Alliance. The study recommends incorporation of retail customers as equal contributors to its performance in air ticket sales.

KEYWORDS
Airlines, Strategies, Ticket Sales, Travel Agencies, Zero Commission Policy

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Judy Kibe , Hellen Ogutu , Wesley Kasanzu , "Strategies Adopted by Airlines to Sustain Ticket Sales Performance Post the Zero Commission Policy: A Case of Kenya Airways (KQ)," Universal Journal of Management, Vol. 9, No. 2, pp. 52 - 61, 2021. DOI: 10.13189/ujm.2021.090204.

(b). APA Format:
Judy Kibe , Hellen Ogutu , Wesley Kasanzu (2021). Strategies Adopted by Airlines to Sustain Ticket Sales Performance Post the Zero Commission Policy: A Case of Kenya Airways (KQ). Universal Journal of Management, 9(2), 52 - 61. DOI: 10.13189/ujm.2021.090204.