Overall Pricing Dynamics & Correlation with Market Share

 

In the context of the competitive shifts seen this week, pricing strategies play a critical role in shaping market share outcomes on the LHRBKK O&D. Direct carriers like Thai Airways and EVA Air maintain higher price points, with average fares of £1,268 and £1,118, respectively. Thai Airways’ focus on premium pricing allows it to attract a segment of travelers willing to pay for the convenience of direct service, though its recent market share decline indicates that price-sensitive passengers are turning toward lower-cost connecting options. In comparison, EVA Air’s slightly lower fare has not translated into a higher share, highlighting that brand reputation or service offerings likely give Thai Airways an edge.

 

Qatar Airways has effectively leveraged its competitive pricing to capture 17.5% of the market, positioning itself with an average fare of £999—one of the more affordable options in the market. Despite not being the lowest-cost carrier, Qatar’s ability to balance affordability and service quality has made it an attractive option for travelers who might otherwise choose direct flights. This pricing strategy has supported Qatar's upward trend in market share, allowing it to become a key player in the connecting carrier segment.

Emirates, with an average fare of £1,191, offers a slightly higher-priced option compared to Qatar, targeting travelers who value its extensive global network and premium positioning. While its pricing is not as competitive as Qatar’s, Emirates has still managed to gain a portion of the market, indicating a balance between cost and the perceived value of its service.

 

Gulf Air, often leading the market with the lowest fares—being the cheapest option 14 times—has not seen substantial gains in market share, holding at just 4%. This suggests that while aggressive discounting may attract a subset of budget-conscious travelers, it is not enough to drive significant market share increases without a broader appeal or brand strength.

 

Focus on Etihad Airways

 

Etihad Airways holds a market share of 9% this week, positioning itself with an average fare of £1,070—strategically close to the lower end of the fare spectrum among connecting carriers. Etihad’s balanced pricing approach, with fares frequently appearing as the second-cheapest option (14 times), has enabled it to attract travelers seeking value without sacrificing quality. Its positioning suggests that Etihad effectively appeals to travelers who value a slightly higher level of service but still seek affordability.

 

Given that Etihad’s average fare is positioned above Qatar Airways (£999) yet remains competitive within the connecting carrier segment, there is limited scope for increasing fares without risking a loss in market share to price-sensitive competitors like Qatar. Conversely, reducing fares could dilute revenue without a clear opportunity for significant share gains, as travelers seeking the lowest fares may still opt for Gulf Air. The data suggests that Etihad is best positioned to maintain its current pricing, which balances market share retention and revenue optimization. This strategy allows Etihad to remain competitive while sustaining a steady presence in the LHRBKK market.

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Travel agent opportunities

 

Etihad Airways holds a 9.05% share of new bookings through the travel agency community on the LHRBKK route, closely aligned with its overall market share across all sales channels, which stands at 9.3% this week and averages 11%. This indicates a balanced contribution from the travel agency segment to Etihad’s presence in this market, though any shifts in support from key agents could directly impact the airline’s overall performance. Maintaining stable and positive relationships with these agents is crucial for sustaining and potentially growing Etihad’s market position on this route.

 

Agents to Nurture

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Polani Travel

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Polani Travel has historically been a significant partner for Etihad on the LHRBKK route, with a cumulative average share of 11.32%, indicating consistent above-average support. However, recent data reveals a downward shift in this relationship. This week, Etihad’s share of new bookings through Polani Travel fell to 8.68%, below the cumulative average for the second week in a row. At the same time, Polani continues to direct a substantial portion of its bookings to Qatar Airways, which holds a share of 50.54% despite a decline of 7.50% from the previous period. This trend suggests that while Qatar has seen a recent dip, it remains a dominant choice for Polani’s customers. The change in Etihad’s share indicates a potential loss of preference among Polani’s client base, which may be influenced by competitive pricing or service offerings from Qatar Airways. Understanding the underlying factors behind this shift could be key to re-engaging Polani Travel and reinforcing the historical strength of the partnership.

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The Travel Tree

 

​Etihad maintained a 100% share of new bookings with The Travel Tree, reflecting one of its most steadfast partnerships. This agent’s complete commitment to Etihad significantly contributes to the airline’s overall success on this route. Given that The Travel Tree’s support surpasses the broader travel agency average, maintaining this relationship through tailored support will be key to securing Etihad’s market position.

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​Agents Requiring Attention

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Travel Up

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Travel Up has consistently been a challenge for Etihad in the LHRBKK market, with a cumulative average share of 5.42%, falling well below Etihad’s overall market share of 9.05%. This week, Etihad’s share increased slightly to 4.20%, but it remains below both the cumulative average and the airline’s overall market share. Meanwhile, Qatar Airways has captured a notable 44.76% share of Travel Up’s new bookings this week, significantly outpacing its market share of 15.80% on this route. This disparity suggests that Qatar’s offering continues to resonate more with Travel Up’s customers. The sustained gap in support for Etihad points to potential areas for improvement in alignment with Travel Up’s preferences or customer needs, which could include competitive fare structures or more targeted offers. Narrowing the difference between Travel Up’s cumulative share for Etihad and the airline’s overall market share could result in an annualized incremental revenue of approximately £440k.

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Gold Medal Travel

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Gold Medal Travel’s relationship with Etihad shows signs of persistent underperformance. The airline’s cumulative average share through Gold Medal is 6.30%, below its overall market share of 9.05%. This week, Etihad’s share dropped further to 4.22%, reinforcing the trend of limited engagement. During this period, other carriers like EVA Air have maintained a strong presence with Gold Medal, directing 34.94% of their bookings through this agent, well above their market share of 15.09%. The consistent preference for competitors indicates a need for Etihad to better understand the factors that draw Gold Medal’s clients to other airlines, potentially addressing gaps in pricing or service offerings that could realign the agent’s focus. If Etihad is able to bring Gold Medal’s support in line with its overall market share, the potential annualized value of this adjustment would be around £228k.

 

Trailfinders

 

Trailfinders has also demonstrated a pattern of underperformance for Etihad, with a cumulative average share of 7.24%, which remains below the airline’s overall market share of 9.05%. This week, Etihad’s share of bookings through Trailfinders increased slightly to 4.49%, yet it continues to lag behind the cumulative average. Meanwhile, Thai Airways has benefited significantly from Trailfinders’ support, capturing 49.16% of the agent’s new bookings this week—substantially higher than its overall market share of 24.92%. The disparity between the shares directed to Etihad and Thai Airways suggests that Trailfinders’ customers have a stronger preference for Thai Airways, potentially due to factors such as fare competitiveness or brand loyalty. Addressing this gap could involve a closer review of the airline’s offerings with Trailfinders to identify opportunities for improved positioning. If Etihad can close the gap between the current cumulative average share Trailfinders is giving and Etihad’s overall market share, the annualized incremental revenue from this agent could reach £822k.

 

Travelpack

 

Travelpack has presented similar challenges for Etihad, with a cumulative average share of 6.12%, indicating a lower-than-expected level of support. This week, Etihad’s share rose to 5.68%, but it remains below both the cumulative average and the overall market share of 9.05%. During the same period, EVA Air has maintained a dominant position with Travelpack, receiving 89.20% of the agent’s new bookings this week, which far exceeds its overall market share of 15.09%. This substantial support for EVA Air suggests that Travelpack’s clientele finds more value in their offering, whether through pricing, service levels, or other factors. Understanding the elements that contribute to EVA Air’s success with Travelpack could provide insights for Etihad on how to increase its appeal with this agent. By aligning the share that Travelpack allocates to Etihad with the airline’s cumulative average, Etihad could achieve an additional annualized revenue of £252k from this agent.