Overbooking in Airlines – A necessary evil

Airline overbooking can add up to 3% incremental revenue on an annual basis and hence is a concept taken seriously by most airlines the world over.

Airlines overbook in order to maximize revenues and load factors and ensure that empty seats are avoided (aka spoilage) on high occupancy or sold out flights. Seats may go vacant even after booking for various reasons… Passengers may cancel their bookings, they may be no-shows, they may make duplicate bookings, they may misconnect flights, etc. This process of selling more seats than are available is the ethos of overbooking and by appropriately setting authorization levels higher than capacity to compensate for passenger cancellations and no-shows, airlines increase their bottom lines substantially as the entire amount apart from the meal/amenity costs of the overbooked passenger goes to the bottom-line.

When airline companies overbook a flight, the known factors are the aircraft capacity, current bookings and the company policy on overbooking while the uncertain factors are the no-shows and cancellations, the booking behaviour and activity, the customer reaction to denied boarding and associated costs and the number of unsold seats in a higher cabin.

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Market Perception of Sales-People

How do Customers perceive Salesmen in general?

We have come across quite a few good sales-people who are efficient and effective. They consistently achieve targets and are respected by their clients. However, the majority of sales-people do not meet the above criteria. What do clients feel about sales-people who call on them? In a survey carried out with various customers, the following observations were made about sales-people:

1. They talk too much.

2. They do not listen to our needs.

3. They display a ‘know-it-all’ attitude.

4. They try to sell without understanding our specific requirements.

5. They do not show much concern about our business process.

6. We are bombarded with unnecessary technical jargon.

7. Their follow-up is based only on their needs and not on ours.

8. They are desperate to close the order.

9. Very rarely do they follow up after collecting the order.

10. They become defensive when pointed out about product and service deficiencies.

Excerpt from Contextual Selling®: A New Sales Paradigm for the 21st Century.
Author – Rajan Parulekar

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What makes Training Exciting?

The answer is simple… Think on your feet as a trainer and don’t be afraid to challenge the edges. While trainers teach participants to think out of the box, how often do we do this ourselves?

Our recently concluded workshop on “Guest Delighted” had a participant who happened to be a state level bodybuilder. During one of the sessions on sharing success stories, he was called upon to talk about the ‘blood, sweat & tears’ behind building one’s body for a championship. Apart from the rigorous training schedules, the kind of diet and abstinence of food, as well as zero water consumption during the competition day had the audience gasping in empathy. At the end of this short talk, we asked him if he would be comfortable to do a live demo as he would at a competition. He happily removed his shirt and did a demo for all amidst loud applause from all. Not only did this make him feel good, the participants had a good break from the regular training style and yet learnt something during this short breaker!

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Selling – A science or an Art?

There are two schools of thought about the profession of selling – whether it is a science which can be taught or an art that can be learned through experience?

In a survey of 173 marketing executives, 46 per cent perceived selling as an art, 8 per cent as science and 46 per cent perceived selling as an art evolving into science.

You may have come across some dynamic and charismatic salespeople and to some extent, advertising professionals, who perform consistently well and thus, get excellent results. Such people have tremendous enthusiasm and the gift of the gab. They feel selling can be learnt only on field by making sales calls. The more calls you make, the better is your experience and thus your success rate. While speaking to some of the top performers, I was told that success comes through experience and experience comes through failures. So, stated otherwise, one has to make lot of calls and face challenging situations like facing angry and egoistic customers who make you wait endlessly. It is also about closing a good number of orders, losing some, and while doing so have an inner resolve that one has to succeed come what may.

Essentially this school of thought, which says that learning ‘selling’ through years of “slogging in the field” rather than a systematic and fundamental body of knowledge can be dangerous as John Howard’s dictum “ Experiential Knowledge can be unreliable.” Selling as a science looks at selling from the perspective of human psychology and may also include Hertzberg and Abraham Maslow’s theory of motivation. Some of the conceptual frameworks in selling are: AIDA theory, which stands for getting the Attention of the customer, creating Interest, arouse Desire and enable him to take an Action. The other one is tell them what you want to tell them (Introduction), tell them (the Sales Pitch) and tell what you have told them (Summary and Order Closing).

Excerpt from Contextual Selling®: A New Sales Paradigm for the 21st Century.
Author – Rajan Parulekar

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Celebrate your Successes

A unique way to celebrate and motivate your sales team… here’s an example of the sales team at the Hotel del Coronado outside San Diego which took the art of team bonding to a whole new level when the group jumped out of an airplane to celebrate its June bookings success.

The team exceeded its monthly booking goal by 200% that month, a production level that had not been accomplished since 2005. To celebrate, they all went skydiving.

Vice President, General Manager Andre Zotoff jumps for the sales team.

“I set the goal so high that I never thought that I would actually have to jump out of a perfectly good airplane,” said Cheryl Ferguson, director of sales, who is afraid of heights. “But they are an amazing team and knocked their goals out of the park … so I had to live up to my end of the deal.”

The entire sales team, along with the new Vice President, General Manager Andre Zotoff, and the director of conference services jumped from 13,000 ft (3,962 m) to celebrate the triumph.

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