Since I presented the Air Pacific case study yesterday, I had a few good questions from people on this success story. I’ve finally uploaded the last of the video, but as you can’t see the slides, it is only useful if you are interested to listen whilst looking at the downloadable slides.
One question was regarding exactly when the hotel cross sell email is sent. The answer is that first we ticket the PNR, then we check to see if it meets the criteria for hotel cross sell. If it doesn’t qualify (eg. outbound PNR) then we send the itinerary email with the e-ticket number. If it does qualify (approximately half the PNRs qualify) then we slightly delay the intinerary email and first send an email saying the booking has been confirmed. this email asks the passenger to please look at these specific hotel offers whilst their e-ticket is being prepared. Soon thereafter we send the standard itinerary PDF email.
The second question was asking me for more information on the calculation that derived the figure showing a 243% increase in hotel bookings sold. This is explained in the fine print on the slide, but to summarize, it is bookings in the first week after the cross sell email was put into production over the average weekly bookings for the previous 12 months. The new data was from 4-10 May, and as I clearly said in the presentation, this number will change when I get a bigger data sat, and it may even go down - but I have no doubt that the final number will still be a very big increase over previous sales figures and I’d be surprised if it dropped below a 200% increase. You need to remember that I said when presenting these results that I was kind of doing it with one hand tied behind my back. We are only cross selling to most inbound PNRs, yet I haven’t reduced the denominator by half to account for this. Secondly, this is only phase 1 which uses some pretty basic segmentation criteria. Phase 2 will have much more targetted hotel offers so conversion should increase. Thirdly, as I only had one week of data, but the average fare is purchased 46 days in advance (industry average, not FJ), I would expect that some people who received the email are now more aware that Air Pacific sells hotels, their branding in this area has improved, and some people will come back in the next few weeks and purchase at hotel based on the email they received sometime between the 4th and 10th of May. Today I am considering these as non conversions, but clearly some will convert prior to departure.