PEAKWORK CASE STUDY: EUROWINGS Eurowings boosts tour operator sales across international markets Distribution diversification with Peakwork technology

State: July 2018

BACKGROUND Eurowings is Lufthansa Group’s low-cost airline and as such part of the world’s largest aviation group. With a fast growing fleet of 185 aircraft, Eurowings specializes in budget-priced direct flights within Europe and is on its way to becoming a OVERVIEW leading European airline. As one of the pioneers of low-cost Company: Eurowings long-haul travel, Eurowings also flies to popular long-haul Location: Germany destinations in America, Asia and the Caribbean. This Ger- Technology: Peakwork man airline currently offers flights to more than 210 destina- Flight Player, Flight Distribu- tions in over 50 countries worldwide. tion, Airline holidays, Travel- This year for the first time, the company will fly more than viewer integration 40 million passengers and grow to around 10,000 emplo- Results: Converting tour yees. The Eurowings Group now owns five flight operations: operator availability, own Eurowings Germany, Eurowings Europe (including Vienna, dynamic tour operator Palma), Germanwings, Brussels Airlines and Luftfahrtgesell- brand, international sales schaft Walter. Link: www.eurowings.com

THE CHALLENGE In the highly competitive airline market, digitalization and the shift from being a flight supplier towards a digital Travel Com- panion is on the airline’s strategic agenda. With this in mind, Eurowings was looking to extend its distribution channels into international markets with new global operating partners, as well as supplying flights to tour operators for dynamic packa- ging, including daily updated prices and availability. In terms of selling additional products and services, Eurowings was also seeking a solution where they could sell flights combined with hotels as travel packages.

1 THE SOLUTION Eurowings started working with Peakwork in 2013. Since that time, all the partners within the Peakwork network have benefited from the extensive flight portfolio of this leading airline. Smart and Basic Fares for the complete Eurowings flight route network, including all origins and destinations, are available in the Peakwork network, as well as offers with and without baggage.

Major tour operators access this extensive portfolio to bund- le Eurowings’ offers with their own or external hotel content from the Peakwork network to create new and unique travel packages. Many German tour operators such as TUI, Thomas Cook, DER Touristik and others are building packages this FAST FACTS way, as well as international partners including Czech tour operator Fischer Reizen, Dutch Vakantiediscount, Swiss Ho- • Successfully entered new telplan and TUI Spain. international markets • Access mass traffic with Besides access to this leading flight portfolio, partners also OTA partnerships benefit from hourly updated flight availability and full fare • New airline holidays of- flexibility as part of the packaging process. Fares with and fers with travel packages without baggage are available, where the traveler can choose • Travel agency sales via a flight within the travel package and then include or exclude Peakwork Travelviewer baggage when completing the booking process. • Operating flights more efficiently by filling empty Stefanie Wasserfuhr, Director Sales & Distribution at Eurowings seats Aviation, says:

“Eurowings is the fastest growing airline in Europe. We are constantly expanding our distribution network. With Pe- akwork, we have full technical flexibility and support to connect to new international partners. Player Hub Techno- logy has the potential to extend our sales channels across the globe.

Even the international Flight-Only distribution of Eurowings flights has increased in the Peakwork network with powerful partners such as Kiwi.com.

German travel agencies can also search for Eurowings’ flights in Peakwork’s Travelviewer, the search and consultancy soft-

2 ware that offers flexible search options for travel agencies for leisure travel offers, flights, hotels and packages.

Booking solutions are flexibly adapted to the specific partner and distribution channel. Peakwork’s B-Hub booking solution executes bookings by direct API connectivity to Eurowings.

Since 2016, Eurowings has also been operating its own dynamic tour operator brand, Eurowings Holidays. On its website, holidays.eurowings.com, the dynamic tour opera- tor sells travel packages with hotels combined with flights from the Lufthansa Group, including Eurowings, Lufthansa and Swiss Air. Highly qualified traffic comes from the Euro- wings website. Eurowings packages are also sold on third party OTA platforms such as Check24 and Holidaycheck. Each search process for flight-only offers featured on www. eurowings.com also displays packages underneath the flight results. This is a great upselling feature to encourage poten- LINK tial customers to book a flight plus hotel package instead the flight-only offer they were initially considering. This is how • www.eurowings.com tour operator partner Tropo, with Peakwork technology, ge- • https://holidays.eurowings.com nerates additional revenue and fills empty seats across the entire fleet. And as flight ticket prices are not transparent in the holiday package price, this leads to much greater flexibi- lity in package pricing.

Stefanie Wasserfuhr explains: “Eurowings Holidays is the logical extension to further develop our business. We are now operating our flights more efficiently and can fulfill our clients requirements with a full service for flights, hotels, car rental and acti- vities.

3 SOME RESULTS Eurowings consistently generates a solid number of boo- kings in the Peakwork network, focused on direct sales to B2B partners. Through international partners such as Kiwi. com, the airline’s offers are available in multiple international markets. Eurowings is among the best performing airlines for tour operator distribution for package production across the Peakwork network.

NEXT STEPS Digitalization and portfolio diversification is highly prioritized on the company’s agenda and will be basis for the airline to address customers directly with extended flight and travel services in the future.

In the Peakwork network, the airline focuses new internatio- nal sales markets, such as the US. New fares are planned for integration and will be displayed by Peakwork technology to increase product offer and flexibility for online customers. The fares BEST and BIZclass, as well as selectable extras, will be added to increase flexibility and market competitiveness.

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