As part of a broader strategy project, SriLankan Airlines wanted to improve its distribution cost structure and take advantage of direct distribution as well as achieving better reach to high yield business passengers.
InterVISTAS team, working closely with SriLankan team, delivered the following project activities over six months of project execution:
- Interviews and information capture on channels, segments per channel, unit revenues and costs per channel.
- Develop ‘as is’ distribution mix where segments per channel and channel costs are identified.
- Review distribution industry best practices.
- Develop ‘to be’ distribution mix expanding the share of direct distribution and other measures.
- Develop a financial model identifying the benefits of the new distribution mix where the distribution costs are reduced and access to high yield customers is improved.
- Benchmark ancillary revenues and develop ancillary revenue improvement strategy.
- Define specific projects and implementation plan for execution of the proposed distribution strategy.
The distribution strategy was approved and is currently being implemented by SriLankan Airlines.