Aeroflot sells tickets in Russia and abroad through a variety of channels, including the official Aeroflot website where passengers can buy tickets both for Aeroflot airline’s flights and the flights of its subsidiaries under commercial management. To ensure a uniform offering of online services, subsidiary websites have been deep-linked with Aeroflot airline’s platform for online sales. Pobeda airline sells tickets independently through their own website and online booking systems.
In the report period (2016), the Group continued to streamline the structure and increase efficiency of its ticket sales. Growth in online sales is a common trend in the airline industry, driven by more accessible and easy-to-use web apps and the growing number of digital devices (laptops, tablets, and smartphones).
In 2016, online sales grew to 29.2% of Aeroflot Group’s revenue, while agents accounted for the largest share (63.3%). Sales offices and the call centre accounted for 6.3% and 1.2%, respectively.
Breakdown of Aeroflot’s revenue
Aeroflot’s sales by channel
Sales in Russia
In Russia, sales are carried out through authorised agents (under direct agency agreements), neutral sales systems (Transport Clearing House (TCH) and BSP Russia), own sales offices, Aeroflot airline’s website, and the call centre.
In 2016, the share of neutral agents in the total sales grew up to 71.7% y-o-y. Streamlined agency fee costs and a partial migration of sales online drove sales through authorised agents down to 16.7%. Sales through own sales offices accounted for 11.6%.
In 2016, we launched a new incentive programme for agents in Russia, which helped cut our agency fee costs in Russia by more than two times.
Split by region, Moscow (60.3%), St Petersburg and the Russian Far East accounted for the largest share in Aeroflot Group’s sales in 2016.
Breakdown of Aeroflot’s domestic revenue
Breakdown of Aeroflot’s domestic
revenue (excluding Moscow)
Aeroflot’s domestic sales by channel
International ticket sales of the Aeroflot Group are carried out through the network of agents within BSP and ARC settlement systems, authorised agents (under direct agency agreements), sales offices, Aeroflot airline’s website, and the call centre.
In 2016, sales through the network of agents in neutral sales system (BSP, ARC, TCH) accounted for 87.3%. Sales through authorised agents totalled 6.8%, and sales through own offices accounted for 5.9%.
Throughout the year, Aeroflot Group has introduced several initiatives aimed at strengthening relations with the international agency network by optimising agency terms, offering special rates to sales agents, and leading joint marketing campaigns.
In 2016, the highest international sales were generated in Europe (45.0%).
Aeroflot’s international sales by channel
Breakdown of Aeroflot’s revenue from
international sales in 2016
Aeroflot Group is actively enhancing its corporate sales. Aeroflot’s corporate customers include a variety of fuel and energy, finance, pharmaceutical, retail, food, and construction companies. Our wellbalanced mix of industries ensures sustainability of the corporate sales segment.
Aeroflot Group’s corporate sales priorities include:
- global companies maintaining representative offices or business projects in Russia or the CIS;
- major international or regional Russian companies;
- state-funded institutions.
Aeroflot’s sales force meet with key market players, identify opportunities, work out partnership terms and conditions, and sign contracts with promising companies.
Aeroflot’s pricing strategy primarily seeks to develop and maintain a sophisticated schedule of fares and fare rules, serving as a sales management tool to maximise revenue. The pricing policy takes into account both the price factor and the load factor, which is supposed to ensure profitable operations throughout the network. Aeroflot’s pricing policy is tailored to the chosen market and Aeroflot’s positioning objectives. Fares are based on changes in competition on the market; demand fluctuations; seasonal changes in capacity driven by flight frequencies, type of aircraft operated on the route and quality of connections; FX fluctuations; fuel prices; political and economic environment. Aeroflot’s fare schedule and fare rules are designed to encourage the use of all fare groups taking into consideration passenger segments.
Our Sabre and Sabre-based IT tools enable maximization of revenue and include a number of software packages providing for seat inventory and pricing management.
2016 saw carriers actively migrating from a simple fare schedule to fare brands, i.e. the model that uses 3–4 fare groups differentiated not only by fare rules but also by the set of value-added services and privileges. Starting from November 2016, Aeroflot has applied a fully branded fare schedule offering two fare groups in the Business and Comfort Classes (Classic and Flex) and four fare groups in the Economy Class (Promo, Saver, Classic, Flex). Price differences between the fare groups were reduced to provide free access to value-added services and privileges.