Executive Summary - Etihad

 

Value of Opportunities Identified this Week

 

This week’s advisory highlights a £10.2 million annual revenue opportunity for Etihad, primarily driven by the critical need for renewed engagement and strategic reactivation of underperforming travel agents across multiple O&Ds.

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The primary revenue potential, totaling £9.1 million, lies in addressing underperformance among key agents, including Trailfinders (£2.4 million), Travel Up (£1.7 million), and Aviate (£862k). Strategic partnerships with these agents, as well as others such as Gold Medal, Love Holidays, and E Travel, represent a substantial path forward to bolster Etihad’s position across several markets.

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While targeted pricing adjustments on select routes could contribute an incremental £1.1 million, the essential focus remains on maximizing engagement and growth with the travel agency community.

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Direct Services to the Home Market

 

This week, Etihad Airways maintained its dominant position in the London to Abu Dhabi market, holding a 51% share of new bookings. However, this represents a decline from the previous week's 54%, as British Airways gained ground, increasing its share to 47%. This shift in market dynamics signals an opportunity for Etihad to reinforce its position as the preferred carrier for direct services through targeted engagement and strategic adjustments.

 

O&Ds where Etihad is Outperforming but Must Remain Vigilant

 

LHRSYD

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Etihad continues to excel among connecting carriers in the London to Sydney market, achieving a 9.5% market share this week, slightly down from 10.1% last week but still well above its cumulative average of 5.7%. This stability highlights Etihad's strength in offering competitive connections through Abu Dhabi. However, with Qatar Airways gaining momentum and Emirates maintaining a strong presence, Etihad has the opportunity to fortify its market position. A focus on differentiating its service offerings could help maintain its competitive edge as rivals seek to close the gap.

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LHRHKT

 

In the London to Phuket market, Etihad holds a strong position among connecting carriers, achieving a 20.6% market share this week, up from 19.7% last week. This performance is well above its cumulative average, highlighting Etihad’s effectiveness in attracting passengers through Abu Dhabi. However, Emirates is also gaining ground, with its share rising to 16.7%. Etihad has the opportunity to reinforce its standing in this market, ensuring it capitalizes on its current momentum to maintain an advantage before competitors gain further traction.

 

Underperforming O&Ds Presenting an Opportunity to Grow Revenue

 

LHRBKK

 

On the London to Bangkok O&D, Etihad’s market share is 9% this week, below its cumulative average of 11%. The recent sharp decline in Thai Airways’ market share, down to 30.9%, opens up opportunities for connecting carriers like Etihad. Qatar Airways has already capitalized on this shift, increasing its share to 17.5%. This evolving market dynamic presents a strategic chance for Etihad to enhance its appeal to travelers seeking alternatives to direct services, potentially capturing a larger share of the connecting market.

 

LHRMEL

 

Etihad’s share on the London to Melbourne O&D declined slightly to 10.1% this week but remains above its cumulative average of 5.5%. The need for renewed focus is evident, as Qatar Airways leads at 15.3% and Emirates remains close behind. Etihad must capitalize on competitors' fluctuations, emphasizing the value of its service to attract more travelers and strengthen its market presence. A proactive strategy could ensure sustained growth amid intensifying competition.

 

LHRMNL

 

Etihad’s share on the London to Manila O&D remained stable at 9.7% this week, closely aligning with its long-term average of 10.8%. This positions Etihad behind major competitors like Saudia, which leads at 22.3%, and Qatar Airways at 16.6%. The current dynamics suggest room for Etihad to refine its offerings, positioning itself to capture additional market share and revenue in this price-sensitive market.

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LHRDPS

 

In the London to Bali (Denpasar) market, Etihad held a modest 4% market share this week, aligning with its cumulative average. This stable performance, however, remains significantly behind market leaders like Emirates, which commands a 30.2% share, and Qatar Airways at 14.6%. The gap suggests that there is an opportunity for Etihad to explore strategies to gain a greater foothold in this market, particularly by emphasizing its value proposition to travelers seeking alternatives to more established connecting options. Improving engagement with travel agents and enhancing the appeal of its connection through Abu Dhabi could help Etihad capitalize on the potential to attract more passengers on this route.

 

Travel Agency Dynamics

 

This week, Etihad Airways observed varying levels of support across its agent network, with some key partners driving growth while others require immediate intervention.

 

High-Performing Allies

 

Southall Travel and Polani Travel remain crucial allies for Etihad, maintaining consistent support and helping sustain Etihad’s presence across key routes like LHRMEL and LHRBKK. Prioritizing these relationships could help Etihad deepen its market penetration and leverage their stability to counter competitive pressures.

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Agents Requiring Immediate Action

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Etihad has opportunities to strengthen relationships with agents who have shown a decline in support. Travel Up continues to lag behind expectations, with its share of Etihad bookings falling below both the cumulative average and overall market share. E Travel Online remains a critical area, with no new bookings recorded for several routes, highlighting a need for targeted intervention. Gold Medal Travel and Trailfinders also present challenges, with competitors like Qatar Airways and Emirates capturing larger portions of their bookings. Aviate’s current performance also suggests an opportunity for improvement, with notable support shifts impacting Etihad’s presence across relevant O&Ds.​