Don Peppers and Martha Rogers Ph.D. invented one-to-one business strategy over 15 years ago. Today, they are recognized gurus, acclaimed authors and globally sought-after speakers.
Topic:
The recent news about Southwest and Airtran merging, which was closely followed by the approval of the pending merger between United and Continental, continues the consolidation in the airline industry that started in 2008 with the Delta and Northwest merger. These changes provide more than opportunity; they signal a need for change. Airlines today must integrate their revenue management and loyalty program data to gain a competitive advantage. Doing so will help to increase customer value, profitability, and retention.
We won't rehash in detail the pros and cons of these airline mergers as every news publication has laid them out already for their readers. A still-recovering economy has continued to put enormous pressure on the travel industry, and while price points and occupancy levels seem to be slowly recovering, they are still a far cry off from the industry's heyday. Economies of scale, access to new markets, and the growth imperatives dictated by Wall Street surely played an important role in the recent merger fever. It would not come as a surprise if there is more to come in the near future as other airlines, primarily American Airlines, see their market position eroded and threatened by the recent merger activities. Alaska Airlines, USAir, or perhaps even JetBlue are all potential merger candidates.
