In his opinion, the fashion user looks for clothes according to the weather and at the same time arrive quickly at the stores. The June 2019 calendar With Holidays professor also recognizes that being “all year in the discount period” has led to the consumer getting used to always buying on sale and talks about another phenomenon: the proliferation of lower cost brands than the ones already existing. In this sense, he gives as an example to Primark, which in terms of prices “is at a level below other brands considered” low cost “as Zara or Mango».
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As a result, according to a study by CarTrawler and IdeaWorksCompany, the so-called complementary services will bring in revenues of 92.9 billion dollars (close of 82,000 million euros) to the sector this year. Almost 11% of your billing. Each passenger will pay, on average, about 20 euros for this type of service.
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The complementary services accumulate several years on the rise. In comparison with 2017, they have grown by 13%. Since 2013, when they were 42,600 million dollars, they have doubled. And if you look at the evolution of the last eight years, the increase is 312%. Although it was the low cost airlines that developed this type of practices, the traditional ones make more and more use of them.
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According to CarTrawler’s study, this group (which includes Iberia) will be the one that will contribute the most to the growth of complementary services this year due to its greater business volume, with revenues of 32,379 million euros. If this figure is added to the billing of airlines based in the United States, the revenues of traditional airlines rise above 56,000 million euros.
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“The flexibility of complementary services allows any airline to generate revenue from of on-demand options, commission-based retail trips, frequent customer programs and rate packages.
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In the case of low cost companies, the contribution of these extras is lower; around 25,000 million euros. Despite this, they have become an essential pillar of their accounts. For some, like the American Spirit, these additional services account for about 50% of their income.
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Many of the largest airlines in the world are adopting the practice of supplementary income, “highlights the report prepared by CarTrawler.
However, the KPMG Consumption partner, June 2019 calendar With Holidays, does not believe there is an exhaustion of the model. “It is a product that will always be fashionable, never better”, says Peregrina. “There is no crisis, the stock market crashes despite the good results are more related to the projection and what may happen in the future,” he adds. Regarding the recurring discount policy, KPMG’s Consumption partner explains that the important thing is that brands understand that they must grant «an added value to the product» so that customers consider that it is worth paying that price.