Iberia Airlines Sees New Distribution Tactic as Way to Nose Ahead of Rivals
Photo Credit: An Iberia plane on the tarmac in Barcelona. Source: Iberia. Iberia
Skift Take
The Spanish flag carrier is overhauling its distribution process and plans to introduce new products in 2022. Its story provides insight into a flurry of announcements by other carriers aiming to make similar moves.
Iberia said its distribution overhaul will speed up its ability in 2022 to roll out new products, such as by letting the Spanish flag carrier more easily bundle seats with ancillaries at new price points.
"The technology we've adopted is more agile and is going to allow us to develop new products in a faster way," said Celia Muñoz Espin, sales strategy and distribution director at Iberia. "It's about competitiveness and getting more revenue."
Iberia's story provides insight into a recent flurry of similar moves by other airlines. Many executives now believe that selling seats and ancillaries more nimbly could bolster larger carriers' competitiveness.
It's well known that airlines seek relative advantage by cutting costs and boosting productivity. But distribution technology — namely, smarter software for pricing, bundling, and distributing airfares and upsells to travel agencies — is increasingly seen as giving early adopters an edge, too.
