RTE calls for horizontal integration across travel industry
Reed Travel Exhibitions (RTE) has said the disruption caused by the eruption of Iceland’s Eyjafjallkokull volcano calls for travel operators to consider integrated travel options.
The firm’s Group Exhibitions Director for Arabian Travel Market (ATM), Mark Walsh, said the disruption caused by the volcano to the global travel and tourism industry in the past few weeks had highlighted a need for airlines to implement a policy of horizontal integration - utilising other forms of transport to avoid future risk to the industry.
“With Europe almost being a no-fly zone, rail networks, cruise and ferry operators and car rental companies have absorbed the significant rise in demand. However, it has done little to counteract the huge losses being sustained by grounded airlines,” said Walsh.
Figures show that during the first five days of the crisis, 6.8 million passengers were affected, creating huge economic losses equating to approximately US$200 million a day globally.
“This opens doors for airlines to consider investing in other transport profit centres, which can be utilised in times of crisis,” said Walsh.
” By creating transferable tickets over various transport mediums, all operating under one brand, airlines have an opportunity to increase revenue and provide customers will a full turn-key travel solution.”