Malaysia Airlines targets US$129m million worth of online sales

Eyeing a considerable chunk of transaction via its own site, Malaysia Airlines is targeting RM450 million (US$129 million) worth of online sales this year.

Last year, the airline recorded over RM120 million worth of online sales as
customers flock to its website (www.malaysiaairlines.com), driving monthly hits
to reach an all-time high of 1.3 million, far exceeding its 284,000 monthly hits
in 2005. The steep increase in online transactions is attributed to the
airline's aggressive low fares promotional activities.
   
According to the airline, foreign transactions constitute over 60 percent of
the sales while local bookings make up the rest. Local transactions were
boosted by more than a 195 percent increase in the number of internet users
between 2000 and 2006, which saw Malaysia hitting a 40.2 percent internet
penetration rate last year.

Malaysia Airlines commercial director, Dato' Rashid Khan said, "Online
transactions are the way to go especially as we move towards electronic
ticketing this year where physical tickets will no longer be issued. To
facilitate this move, we have allocated RM200 million over a five-year period
to create a hassle-free and efficient distribution channel. When electronic
ticketing is fully implemented, customers can easily print his/ her itinerary
from the comfort of his/ her home, and manage itinerary changes easier. The
best thing is that they no longer have to worry about lost or stolen tickets".

On the Malaysia Airlines' website, low airfares are available 342 days in
advance. Customers who book their tickets via the Internet generally pay lower
air fares.
   
Also, according to local media, in line with the new airfare structure that
the airline will be implementing this week, it will reduce the commission it
pays travel agents for ticket sales to two percent from five percent instead of
pushing ahead with the zero percent commission policy. The zero percent
commission policy has been deferred to Jan 1, 2008. According to Malaysian
Association of Tour and Travel Agents (Matta), the reduction to two percent was
to help travel agents defray cost and help them cope with the new business
model.