Air France offers commercial flights to customers in the airline industry. Trends indicate that this industry is projected to reach a breakeven point of $500 million by 2006. This growth is attributed to the increasing demand for international travel and the rising prices of economy tickets (7.4%). Air France, along with other airlines, is well-equipped to take advantage of e-commerce for direct online sales due to the intangible nature of travel. As broadband internet becomes more accessible to households in the United States, all companies in the airline industry have an equal opportunity to reach a larger consumer base.
Analyzing the structure and content of a company’s website is crucial for enhancing the readability of its contents. The URL structure, Web server settings, information architecture, site usability, and text content are all significant technological aspects of the site. Many companies now focus on generating keyword lists to link their titles, with the cost being determined by the number of clicks on their primary ads.
It is possible to decrease the size of a search engine by using advertising that is more suitable for specific keywords. Currently, large search engines are running extensive campaigns to accurately target keywords based on location, which has become easier. These strategies can be easily measured online, and the ultimate goal is to improve the future revenue and decrease the cost-per-click. This will result in an increase in bookings and overall performance of the search engine.
Google is one of the top options, but it comes with a high cost. To make Google profitable for Air France, they need to make a strong impression and improve conversion rates. This can be achieved by selecting critical keywords. An effective solution could be using both branded and unbranded clicked keywords simultaneously. Media Contacts can help with this strategy, as it has the potential to bring in more revenue and contribute a significant portion of one-click conversions.
To enhance revenue and expand its reach, Air France should consider forming partnerships with other online travel booking sites. It should also concentrate on identifying the search engine that is most advantageous in terms of delivering value, such as Google. This company aims to provide solutions and strategies by collaborating with various research and technology providers as well as the media. Professionals and experts will determine budgets, time frames, and pricing models such as cost per thousand select, cost-per-click, and cost per action. To optimize performance, distinct SEO/SEM campaigns should be implemented on Google, Yahoo, and MSN while also developing a customized approach for each platform.
Each search engine has its own unique search format, varying cost per click (CPC) rates, and booking probability. Google (global and U.S) and MSN (U.S) have the highest CPC rates. Despite this, most funding is currently allocated to Google, even though it does not have the highest probability of booking. To address this issue, it is suggested to eliminate high CPC campaigns with negative return on advertising investment (ROA) and adjust bid strategies accordingly. In contrast, MSN (global) and Yahoo! (U.S) have lower CPC rates and a higher booking probability. Hence, increasing funding for purchasing additional keywords from these platforms is recommended.
Increasing MSN (Global) impressions to 500,000 would result in a 250% increase in ticket sales for Air France, which translates to a net revenue increase of 340,000 dollars. Doubling impressions to 1,000,000 would lead to a 600% increase in ticket sales and an 800,000-dollar revenue increase. Overture, both globally and in the U.S., has the highest booking probability compared to price per click. It is recommended that Air France enhance the search and site copy. By improving the CTR (click-through rate) by 4% within Overture (U.S.), ticket sales can reach 1942.
Graphs: We require a single graph representing the Average Cost per Click for all websites and the average probability of booking. The CPC is approximately 1.49, while the average probability of booking is around 0.0100%. If we were to plot the average probability of booking on the X-axis and the Cost per Click on the Y-axis, a scatter plot could be created to display the positions of Google, MSN Overture, Yahoo, and Kayak.
Additionally, a Pie Chart should depict the distribution of bookings by publisher. The percentages are as follows: Google US = 39%, Google Global = 20%, Yahoo US = 17%, MSN Global = 3%, MSN US = 4%, Overture Global = 10%, Overture US = 7%.
