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Event Date Place. Welcome to. SunExpress’ history More than 20 years of experience in tourism and aviation. Founded in 1989 as joint venture between LH and TC based in Antalya. Originally purely a charter airline 2001: Commencement of scheduled services e.g. to Frankfurt began

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  1. Event Date Place Welcome to

  2. SunExpress’ historyMore than 20 years of experience in tourism and aviation • Founded in 1989 as joint • venture between LH and TC • based in Antalya. • Originally purely a charter airline • 2001: Commencement of scheduled services e.g. to Frankfurt began • 2006: Second base in Izmir opened • 2008: Third base in Istanbul opened • 2010: New corporate identity • 2011: SXD founded, based in • Frankfurt • Since April 2012 co-operation between SXS and Anadolu Jet 50% 50%

  3. Facts and figuresSunExpress in a nutshell People KPIs 2011 Fleet & Network

  4. Business segmentsOver the years, SunExpress developed from a charter carrier focusing on Antalya tourism to a holiday airline with various market segments

  5. Duty Free Strong partners for SXS and SXD Turkey SXS Iris Ekspres Germany SXD Lufthansa World Shop

  6. 50 Daily Business Duty Free Assortment Back Office Crew Cooperation SunExpress (SXD) and Lufthansa WorldShop • Printing and distribution of catalogues • Disposition ofarticles • Communication withsuppliers • Productassortment • Promotions • Settlement • Equipment flow • Coordination with catering units and IT provider • Cash handling • Monitoring offlight plan • Customs clearance issues • Statistical reports for Duty Free and Buy-on-Board • Optimal stowingofarticles • Commission • Training / Top sellers • ISPY training and participation • „Duty Free News“ crew guide for each new assorment • Samples display at crew base • Product booths

  7. Duty Free Revenue 2012 so far.... • Expected revenue 2012: ca. 4 million Euros • Average Spend Per Head (SPH): € 3,89 • Tobacco products account for 81% of revenue! Passenger Split Revenue Split Spend per Head

  8. Challenges & Opportunities • Pressure on cost base • Customer price sensitivity • Weight reduction • Maximisation of Duty Free revenue in limited space available • The „Airport Experience“ • Wider selection of goods • Brand interactivity (touch and test) Rising Oil Prices Airport Retailing Legislation & International Regulations • Opportunities for new sales channels • Costs vs. benefits • Possible restrictions on advertising of Duty Free tobacco for example could have a huge negative impact on revenue Technology

  9. Motivation Why should our passengers buy Duty Free products on board? • Duration of check-in procedure • Early morning / late evening departure times • More convenient for families and the elderly Time & Convenience • Products exclusive to inflight retail e.g. • Pierre Cardin jewellery • Items with SunExpress Logo • Monthly promotions e.g. • Free gift with every purchase • Discounts on selected items • Participation in a draw for • prizes with every purchase Exclusivity Promotions

  10. Product Mix & Loading profiles Knowing our customers helps us to have the optimal product mix and quantities on board • Ethnic passengers primarily visiting family & friends • Duration of stay of every 2nd passenger is in excess of 21 days • Many take gifts and household goods in checked luggage • Duty Free focus on tobacco, spirits & sweets: • High brand loyalty: Marlboro, Yeni Raki, Johnny Walker Anatolia (VFR) • German tourists, and ethnic passengers • Average duration of stay is 7-14 days • Duty Free focus on tobacco, spirits & bargain-buys Turkey (AYT,ADB,DLM,BJV) Turkey (AYT,ADB,BJV,DLM) • German tourists, virtually no ethnic passengers • Average duration of stay is 14 days • Mind-set: Treat yourself and gifting! • Duty Free focus on watches, jewellery, accessoires • Must-have: Underwater cameras! Egypt (Red Sea) & Spain Egypt (Red Sea) & Spain

  11. SunShop Our Duty Free Magazine • The start of the buying experience • Paper & printing quality • Clarity and creative appeal • All texts in Turkish and German • Choice of product on front page • Online

  12. Our ethos: Sales through Service Good training and incentives are vital to boosting sales • Knowing the customer: • Culture, language, mind-set, needs • Knowing the products: • Brands, features, benefits,pricing, special offers • Selling skills: • Up- / down-selling, cross-selling, linked sales, PAs, displays, competence, enthusiasm • „Duty Free News“ Crew Guide • Sales Ambassadors • ISPY (International Sales Person of the Year) • Targets, prizes, staff discounts

  13. Ideas for the future..... Pre-Order Duty Free advertising on ETIX Purchasing virtual products on board Social Media Onlineshop „SunPoints“ Newsletter Home Delivery

  14. …welcome aboard.

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