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.
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.
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.