CHALLENGE:
Northwest Airlines, also representing KLM Royal Dutch Airlines in Mexico, was depending on low-margin sales channels in 2004 and 2005. To generate a higher yielding business, the sales channels approach needed to shift and the organization needed to adapt to improve profitability.
ACTION:
The low-margin tour operating and consolidating sales outlets were shifted to corporate accounts by cancelling non-producing accounts and adjusting the conditions of remaining accounts, as well as boosting incremental corporate business. The sales organization was adjusted accordingly.
RESULT:
The sales channel adjustments and sales team reorganization led to a focus on corporate business, preferred (travel agency) accounts, which resulted in a 20% increase in high-end revenue and total annual sales of over $50 million.
