Hello everyone, last time we talked about some basic skills and ideas that sales should have, which is also the first part of the entire job series, so today we will continue to talk about the second job: airline.
Speaking of routes, I don’t know what everyone’s concept of routes is? Some friends think that the route is just an offer, some people think that it is a position-seeking position, and some people think that the route is a scapegoat. In fact, the airline is a position that requires high comprehensive ability. The above contents are one of the usual work contents of the airline. But the above statement is a bit too harsh.
First let’s take a look at what the correct job responsibilities of an airline are. In general, a flight line is a position responsible for operating a flight line. That is to say, in the course of operation, the airline is responsible for any circumstances. The TA’s head should be very flexible, but at the same time, it should be calm and not copy what others say. You need to talk and laugh, and you need to be careful and rigorous. On the surface, everything is light, but in the heart it is basically a community of contradictions. This situation is determined by the content and nature of the work that the airline itself needs to undertake. Let’s take a look at some of the specific work and precautions of the route.
Since the route is “operating” a route, he must plan for the launch, development, change and unexpected situations of the route. At the beginning, the airline must choose a suitable airline that can be signed as the company’s product according to its own company’s cargo composition. If it is a second-generation, the reason is the same, but looking for an airline has become a first-generation, and the choice will be much wider.
During the operation of the route, we will encounter many problems, such as price, storage space, and cargo type matching. Let’s go through them one by one. Here is an example of a generation.
First, we need to figure out whether we should use the contract price or the adhoc price after receiving a shipment. This issue concerns the performance of the contract. The general basic principle is to fill the positions in the contract first, and then fill the positions of free sales. Then the cost we get is the airline price. How should we quote it to the sales? At this time, the airline is required to be very familiar with the market price of the destination. Suppose, there is a booking of PEK-AMS, the market price is CNY21/kg, and our cost is CNY18/kg. Then there is a profit of 3/kg on the book, but don’t forget that we have other costs here, such as THC (Terminal Handling Charge, generally referred to as warehousing), board making, customs declaration, documents, packaging (if any), etc. , these prices are also taken into account when we quote. Because the price of the airline is only the air freight rate (A/F – air freight rate), and does not include other ground charges (local charges). So now suppose that all local charges are 1 yuan, then our actual cost becomes CNY19/kg, so the actual profit becomes 2/kg. One more thing to keep in mind, does the airline quote the N/N price or the all-in price? If it is N/N, then you need to add FSC (fuel surcharge) and SSC (safety surcharge). Here I will also review what N/N price is. The so-called N/N is the abbreviation of net/net, which is the headroom shipping fee that does not include the two surcharges. In the past, most airlines reported net/net prices, because surcharges, especially fuel surcharges, would vary with the changes in international jet fuel prices. Therefore, in the past, airlines generally quoted net freight rates. But over time, many airlines now offer all-in prices directly. The all-in here refers to n/n+FSC+SSC.
Here is an interlude to popularize the relationship between local charges and a/f. For example, if this is a FOB designated shipment, then the air freight will be borne by the foreign country, and the local charges will be borne by the domestic shipper. We have to find out the nature of the shipment and then report the cost. And all these local charges will be different due to different origins. If you don’t figure it out and report the local charges to a foreign country, it will be a shame.
So to illustrate the problem, let’s take an extreme example. Suppose we add up all the costs now, it is 5/kg, and the market price is 20/kg, then if I quote 10/kg, I can kill the market, right? Absolutely not. Since the market price is 20/kg, then there is no need for us to quote it lower, just maintain the market price, even if it is a little cheaper (unless you are a charter flight, the quotation will not affect the market). Because if we quote directly according to the cost, it will greatly damage the market order. There are so many goods in the market, one can’t collect them all, and one does not have so many positions. It is advisable to make quotations based on the overall environment. In addition, the result of quoting in this way will create an illusion for the market, that is, the overall market environment can be lowered indefinitely, and there will always be some people who will lower the price. In this way, in the long run, we will only kill ourselves, so we can’t make such an offer. In the end, even if the low price is quoted and the sales are reported to the customer, the customer will think, why are you so low. Chinese people who are influenced by the Confucian doctrine of the mean, often do not choose the highest and lowest prices, but struggle with a lot of middle-price suppliers. This is also why the route needs to be very suitable for the market and follow the market at any time, rather than just looking at the price in your own bowl.
Ok, so how does the airline control the position? At the beginning, it must be clear to the sales how many positions we have on each flight, so that everyone can have a clear understanding of the amount of goods received. Moreover, there must be a first-come, first-served rule for booking. It is useless to say orally, and the final bkd shall prevail. There are many customers who promise several companies at the same time, but they do not give bkd. If the word of mouth prevails, then the customer will not come to the occupied position in the end, and who will be responsible for the vacated position? So only bkd shall prevail. However, it should also be considered that some long-term customers have always had good credit. Occasionally it is too late to place bkd once or a half, and that is acceptable. At the same time, these customers are also our bottom line. So at this time, the route must be grasped well. What circumstances can be compromised, what circumstances cannot be compromised, and what the reasons are, we must grasp it well. Because you have to account for all sales.
When we receive the goods, we must adjust the receiving strategy at any time and remember to notify the sales in time. For example, if you have just received a ticket, and now you want to flatten the bubble, you must immediately notify the salesman to start collecting heavy goods now, and consider adjusting the price of heavy goods to attract heavy goods. After all, there is no profit if the bubble cannot be levelled.
If the space is not enough, there are two options, either apply for adhoc, or apply for moving the board for the next flight to this flight. Of course, both have to be approved by the airline. But remember, if you have received the bubble, but this ticket is not on the BSA board, then it is very likely that the bubble will not be divided. This must also be told to the sales, otherwise it can only be moved to the next flight. , otherwise this flight will not be able to eat bubbles. What does it mean to not be able to eat bubbles? That is, it should have been profitable to receive a ticket bubble, but because of the receipt of this ticket bubble, the pivot was not enough, and finally the airline was fined penalty, then the gain outweighed the loss. But you don’t have to worry too much, as long as the price strategy is well formulated, there will be too many problems. For example, having an appropriate heavy cargo policy. Or if the volume of goods is enough, the foam weight can be matched well, which is not a problem.
And the last thing to pay attention to is the cargo type. I know many friends who often think that as long as the goods are received, everything will be fine, and the goods are received simply by looking at the weight. This is actually going to be a problem. So let’s take another extreme example. Suppose you receive a shipment now, which is 5 pallets, the size is 120x100x120, and the total weight is 1T. It doesn’t look heavy, but it’s still a light ticket. Then I received another ticket with the same 5 trays, the size is also 120x100x120, and the total weight is 2T. So at first glance, the first reaction may be, WC, there is such a good thing? In this way, I soaked and recombined, not only after soaking and eating, but the weight was just right! fuck him! As everyone knows, although the weight is just right, but take a closer look at the size, can the 10 trays here be placed on one ULD? The answer is that we can’t put it down, so we need to use two ULDs. After using two ULDs, is pivot enough? Can I still eat the bubbles? The answer is no. Therefore, we must know how to match the goods. Of course, as I have said before, the type of goods does not mean that there are any type of goods I want to receive, but if I lack such an idea to receive the goods, it will cause a lot of trouble to my work.
In addition, as we just said, as an airline, it is necessary to have a clear understanding of the market price at any time. How to do it? In fact, this is also one of the work content of the route.
Routes must maintain close communication with airlines and other experts at all times. Stay informed about what’s going on in the market right now. In this way, you can adjust your price and position strategy in a timely manner.
Needless to say, keep in touch with airlines. In addition to knowing the latest position status, you can also keep abreast of the latest airline adhoc prices and promotion policies. Airlines will also launch some promotions from time to time. For example, a certain destination is currently popular, such as a certain product that is currently popular, and corresponding discounts will also be given. At this time, the airline needs to get this first-hand consultation, so as to quickly launch the market so as to be able to seize the opportunity and obtain a higher market share as much as possible. There are many small partner companies and designers who can quickly turn promotions into posters, so that sales can be sent to a circle of friends.
It is also a good way to keep in touch with experts. And especially the second generation, they are closer to the front-line market and can give you the latest market information in a timely manner. This is also one of the important ways for us to obtain market information. We also need to make changes in response to market changes. Of course, for your own customers, it is also very important to make timely adjustments.
So the question comes again, how can I be sure that the information I get is correct? How to ensure not to be fooled? First of all, we have to check the situation in many ways. If everyone’s information is correct, it is generally not wrong. Secondly, we must have a certain understanding of the market. When we receive a message, we must first judge the accuracy of it. Some very exaggerated information, even if everyone says it is, but it may not be accurate. There may be some news, which may have been added to the news after being spread by many people. Therefore, our own intuition and judgment can also be used for reference, and we must not follow what others say. It’s like a lot of people say I’m handsome, don’t everyone believe me? (dog head)
Many airlines will feel that they are sitting in the office, but in fact, this position also needs to go out to run. It’s just that it’s not just customers, but your channels. For example, is it necessary to chat with the airline in person to see what the latest policies are, which points are the most popular recently, which points have better second-way positions, which points are easier to get adhoc, etc. At the same time, you can also go out and chat with your own distribution agent to see how their recent receipt of goods will affect your bkd, and see what can improve the communication efficiency between the two parties. Of course, for the above things, it is also possible to talk on the phone, but the face-to-face chat is more efficient and more sincere.
Speaking of which, I want to convey a correct concept to everyone. At the beginning of the article, it was said that the impression of the route was the blame. This idea is definitely wrong. A small partner once said that if you can’t get a good price or a fixed position, it must be a problem with the airline, and the airline has to bear the blame. Here I have to name the route. It is true that the airline has to fight for price and position, but this is not something that TA can guarantee. If you want to guarantee, everyone knows that only BSA can guarantee, and the rest are not guaranteed. Routes can rely on negotiating with airlines to try to get better offers, but airlines can also refuse to give them. Because in many cases, positions and prices are not determined by one person, but are determined by objective circumstances. For example, now I have received a lot of goods, and I want to fight for the price. Then the airline will communicate with the airline, but after the communication, it is found that there is still a ticket, and a higher price is given to occupy the position. What about the airline? Is this a poor communication on the route? Not necessarily. The airline also has to explain to the headquarters. The same position, why not give it to the ticket that can pay a higher price? They also want to see better revenue. If you can offer a higher price, then of course you are welcome to tell the airline and let the airline go for it. But at the same time, it is cheap, and the position is guaranteed. How can such a good thing be, right? Therefore, it must be remembered that in the company, the small partners in each position are playing their own role, and no one is the one who takes the blame. Unless he is really fishing all day, this must be dealt with seriously.
Well, having said so much, I hope everyone can have a clearer understanding of the job responsibilities of the airline. See you next time.