Project description
Software to sell spare seats for traditional airlines
Low-cost airlines have carved out a new niche in the travel sector and raised competition among traditional airlines and newcomers. The price policy introduced by the low-cost companies allows them to travel with fewer vacant seats than the traditional airlines. The EU-funded 321NOW project targets the market of traditional airlines and offers a solution for unsold seats. Their Virtual Low cost solution promotes sales of the spare seats eight hours before the aeroplane is scheduled to depart. It provides coverage of passengers’ costs, profit for airline companies, and a commission for 321NOW. In addition, it will offer other travel-related services that increase profit and competitiveness of the traditional airlines.
Objective
The travel sector has been changing considerable since the low cost carriers broke in the market. Traditional airlines have tried to compete but there is still a long way to run. Airlines have an average of 16% free seats when taking off, with low costs carriers being the ones that travel with less empty seats thanks to their costs structure and princes offered in such a competitive marketplace. 321NOW has created the first Virtual Low cost, using the spare seats that were not going to be sold through traditional sales channels, and selling them 8 hours before the plane takes off. We sell the tickets covering the variable costs of the passenger (airport taxes + food –if included-), plus a benefit for the airline and a management FEE for 321NOW. In addition we will sell separately services, such as seats selection, luggage, Wifi, helping the airlines to increase their profit and to better compete with the Low Cost companies.
Fields of science
Programme(s)
Funding Scheme
SME-1 - SME instrument phase 1Coordinator
28001 MADRID
Spain
The organization defined itself as SME (small and medium-sized enterprise) at the time the Grant Agreement was signed.