Executive Summary - Etihad (LHRDPS)
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Incremental Revenue Potential Identified: £777k per annum.
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Market Share Dynamics: Etihad Airways maintained a stable 360 day forward booked market share of 4.1% this week on the LHRDPS O&D, consistent with its cumulative average of 3.9%. In a market dominated by connecting carriers, Qatar Airways and British Airways saw gains, with Qatar increasing from 11.9% to 14.6%, and British Airways rising to 12.7%. Emirates, though leading with a 30.2% share, experienced a decline from 34.1%, indicating potential shifts in the competitive landscape.
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Pricing Dynamics & Correlation with Market Share: Etihad's pricing is positioned slightly higher than competitors like Qatar Airways, whose lower-end fare classes appeal to price-sensitive travelers. While Etihad retains stability with its mid-tier pricing approach, the less competitive lower fare options may limit its appeal in gaining additional share.
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Travel Agency Opportunities: Focused re-engagement with underperforming agents could strengthen Etihad’s position. Key opportunities include Crystal Travel, where Etihad's recent share dropped from 5.7% to 2.5%, and Travel Up, with no new bookings despite a cumulative average of 0.7%. Engaging these and other agents like Gold Medal Travel and Trip.com, where support has been below average, could help bolster Etihad’s presence through improved relationships and targeted engagement strategies.
Market share dynamics
This week, the LHRDPS market remains dominated by connecting carriers, with no direct services available. Emirates leads with a 30.2% market share of bookings for travel in the next 360 days, despite a decline from 34.1% last week, suggesting a potential weakening in its hold. Qatar Airways follows with a market share increase from 11.9% to 14.6%, surpassing its cumulative average of 11.6%, reflecting a stronger presence this week. British Airways also saw significant growth, rising from 10.1% to 12.7%, closing in on its cumulative average. Singapore Airlines maintained a steady position with a slight increase, while Malaysia Airlines and Turkish Airlines experienced declines.
Etihad Airways' market share remains relatively stable at 4.1%, consistent with its cumulative average of 3.9%. This stability indicates a consistent level of support from travelers, even as other carriers saw more pronounced fluctuations. However, the growing presence of competitors like Qatar Airways and British Airways may require attention to maintain Etihad’s positioning.
Overall Pricing Dynamics & Correlation with Market Share
Airlines on the LHRDPS O&D are employing varied pricing strategies, influencing shifts in market share. Emirates, despite leading the market, saw a decrease in market share while maintaining a relatively competitive average fare of 1,158. Its fare range suggests that while Emirates offers some lower-priced options, many of its fares are positioned in the mid-to-higher range, which may not attract as many price-sensitive travelers, contributing to its loss in share.
Qatar Airways' market share gain aligns with its pricing strategy, where it is positioned as a competitive option with an average fare of 1,154 and frequent access to lower fare classes. A significant portion of its fares remains accessible to budget-conscious travelers, while the upper range remains competitive without significantly undercutting the market. This balanced approach likely helped it draw more bookings despite a competitive landscape.
Focus on Etihad Airways
Etihad's current market share stability suggests that its pricing strategy supports a consistent booking level. While Qatar Airways has gained momentum by offering lower fare classes more frequently, Etihad’s positioning at slightly higher fare tiers might appeal to travelers seeking a premium experience. Its consistent performance shows that it retains a core segment of travelers who value service over cost.
However, as competitors like British Airways and Qatar Airways gain ground, maintaining this balance between service quality and fare accessibility will be crucial for Etihad. Emphasizing the value-added aspects of its service while keeping an eye on competitive pricing dynamics can help Etihad remain competitive without needing to match the lower fare levels seen among some rivals.
Travel agent opportunities
Etihad Airways holds a 5.2% share of new bookings through the travel agency community on the DPS-LHR route, which is slightly above its overall market share across all sales channels, currently standing at 4.1%. This indicates that travel agents play a crucial role in supporting Etihad's market presence. Any shifts in agent support can significantly impact Etihad’s overall performance, highlighting the importance of maintaining stable and positive relationships with key partners to sustain and grow its market share.
Agents to Nurture
Crystal Travel
Crystal Travel has historically shown limited support for Etihad, with a cumulative average share of 1.5%. However, recent data indicates a downward trend, with Etihad’s share of new bookings through Crystal Travel dropping to 2.5% this week, down from 5.7% the previous week. This decrease suggests a shift in focus away from Etihad, despite the agent’s past preference. At the same time, Crystal Travel has continued to direct a significant portion of its bookings toward competitors like Qatar Airways, which received 38.3% of their new bookings this week. This change may indicate a loss of preference for Etihad among Crystal’s client base, potentially driven by competitive dynamics or pricing shifts. Addressing the reasons behind this decline could be key to re-establishing the previously strong partnership.
Trip.com
Trip.com’s relationship with Etihad has shown signs of decline from its historical support level of 12.2%. This week, Etihad's share of bookings through Trip.com increased to 3.2%, up from zero the previous week, but remains well below both its cumulative average and the overall market share of 4.1%. Competitors like Singapore Airlines and China Eastern have maintained a larger presence in Trip.com’s bookings. While the recent improvement suggests potential for growth, it will be critical for Etihad to stabilize its position and build on these gains to maintain relevance in Trip.com’s portfolio.
E Travel Online
E Travel Online has shown fluctuating support for Etihad, with a notable increase to 23.6% of new bookings this week, up from 8.0% the previous week. This share surpasses both the overall market average and Etihad’s cumulative share with this agent, which stands at 13.1%. Despite the recent growth, the variability in E Travel Online's support suggests room for stabilization. Competitors like China Eastern continue to attract significant interest, emphasizing the need for Etihad to consolidate its recent gains and ensure a more consistent level of engagement.
Agents Requiring Attention
Travel Up Limited
Travel Up Limited has presented ongoing challenges for Etihad, with a cumulative average share of 0.7%, which falls well below the airline’s overall market share of 4.1%. This week, Travel Up directed none of its new bookings to Etihad, a decrease from the 4.1% seen the previous week. In contrast, Emirates and Singapore Airlines continue to capture a significant portion of Travel Up’s bookings. The sustained gap in support points to potential areas for better alignment with Travel Up’s preferences, such as competitive offers or tailored engagement strategies that resonate more with the agent could potentially generate a substantial incremental annual revenue benefit of £479k.
Gold Medal Travel Group Limited
Gold Medal's support for Etihad has been consistently limited, with a cumulative average share of 2.2%, below Etihad's overall market share. This week, Etihad’s share dropped further to 1.7%, reflecting a declining trend in engagement. Competitors like Cathay Pacific and British Airways have attracted larger shares of Gold Medal’s bookings, indicating a need for Etihad to better understand the factors that draw this agent’s clients to other airlines. By aligning Gold Medal’s support with its overall market presence, Etihad could unlock opportunities for stronger engagement worth around £104k per annum.
Trailfinders
Trailfinders has shown a consistent lack of support for Etihad, with no new bookings this week, following a similar absence last week. The cumulative average share of 3.3% indicates that Etihad has struggled to establish a significant foothold with this agent. Meanwhile, other airlines like Malaysia Airlines continue to attract more substantial bookings from Trailfinders. The gap between Etihad’s share and that of its competitors highlights a need for better alignment with Trailfinders’ market positioning and client preferences which could be worth £21k per annum.
Aviate Management
Aviate Management has not directed any new bookings to Etihad this week, consistent with the previous week. With a cumulative average share of just 1.6%, Aviate’s support for Etihad has remained minimal. The consistent lack of engagement presents an opportunity for Etihad to reassess its approach, especially as Aviate directs more bookings to competitors like Singapore Airlines and Malaysia Airlines. Establishing a stronger presence with Aviate could help Etihad gain access to a broader client base on the DPS-LHR route generating incremental value of around £79k per annum.
Love Holidays
Love Holidays has not shown consistent support for Etihad, with no new bookings this week, following a similar trend in previous periods. This ongoing absence of support contrasts with its historical average of 2.4%. Meanwhile, competitors like Emirates and Cathay Pacific continue to capture a larger portion of Love Holidays’ bookings. To improve its positioning, Etihad may need to explore opportunities for targeted engagement, particularly in areas where its competitors are finding success. An improved positioning with Love Holidays is anticipated to generate an additional £52k in revenue on this O&D.
Expedia
Expedia's relationship with Etihad has been marked by underperformance, with a cumulative average share of 2.4%, below Etihad’s overall market share of 4.1%. This week, Etihad’s share increased slightly to 3.7%, up from 1.7% in the previous week. Although this is a positive shift, the low overall share suggests that Etihad may need to address persistent challenges in this partnership, especially as other carriers like Emirates and Turkish Airlines attract more bookings through this agent. Improving this partnership is anticipated to be valued at an additional £42k per annum.