With the decline of performance and frequent losses, the operating performance of HIS has undoubtedly attracted people's attention. The secret of selling air tickets by HIS is to skillfully use the blank of air ticket circulation channels in Japan.
Air tickets sold by Japan Airlines to travel agencies are divided into individual tickets and group tickets, and group tickets are relatively cheap. The secret of cheap air tickets is to buy group air tickets first and then sell them to individuals, so that the price of air tickets can be greatly reduced. This ticketing mechanism has existed for a long time, but it is only his clever use.
There are three kinds of air ticket circulation channels in Japan: first, airlines sell them directly to customers at higher prices; Second, airlines sell group tickets to JTB (Japan Tourism Bureau); Third, airlines sell them to small and medium-sized travel agencies through wholesalers. In the latter two cases, because it is sold in bulk, the price is cheaper, and it reaches a certain quantity according to the regulations, and there are rewards, which is what we call kickbacks. The wholesaler's sales channel, although the sales target is relatively fixed, sometimes can't sell, and then sell at a reduced price. HIS collects such air tickets at a low price, which can attract consumers with lower fares. In this way, the ticket price sold by his is only one-fifth to one-half of that directly sold by airlines. It turns out that he is not the only one who reduces the ticket price in this way to attract consumers. Therefore, the key to his business success lies in his efforts to improve the service level.
This will be related to the personal experience of President Ze Den Hideo. Sawada was born in Osaka. 1969 After graduating from high school, I went to study in the former West Germany. He loves traveling and traveled to 50 countries during his study abroad. 1976 after returning to China, we started trading first, and then started to operate cheap air tickets. The travel knowledge he accumulated by traveling around the world during his study helped him a lot. HIS not only sells cheap air tickets to customers, but also provides them with travel service consultation. It has greatly attracted tourists, especially curious young people. Cheap air tickets and the added value of various tourist information services make him stand out in the Japanese tourism industry and his business is booming. Until 1985, HIS's turnover just exceeded 2.4 billion yen, and there were only five sales points in Tokyo, Osaka and Fukuoka. In terms of scale, HIS can only be regarded as a small and medium-sized enterprise.
His management has undergone fundamental changes, and opened business offices in Hong Kong and Los Angeles on 1985. At that time, among the travel agencies in Japan, except for the larger companies, no one had set up overseas. Hotels and transportation were arranged by local travel agencies, and his family took the lead and began to set up service points abroad. According to Sawada, this can arrange the accommodation for tourists faster and better, and be foolproof. That year, his most popular tourist route was free travel in China. It is much cheaper to fly from Japan to Hong Kong and then take a train from Hong Kong to the mainland of China than to fly directly from Japan to the mainland of China, and the former is more convenient in terms of visas, hotels and transportation arrangements. The successful planning of this tourism project has brought huge profits to his, which is said to be the benefit of setting up an office in Hong Kong.
Many of the cheap air tickets he runs are off-season or relatively unpopular routes. However, because the company has many offices all over the world, the obscure tourist routes are often designed with some ingenious arrangements, which often bring a bright future, especially for young people who have plenty of time but want to try their best to save money.
After achieving business results, HIS further expanded its business outlets, reaching 32 1990, which enhanced its sales strength. According to the regulations of Japan Airlines, if more than 500 air tickets are sold every year, the price can be reduced by 30% and the sales bonus will be increased. After HIS expanded its network, its digestive ability was further enhanced, which led to a downward trend in air ticket prices, forming a virtuous circle, and the annual turnover increased geometrically. 1986 was 3.3 billion yen, 1988 exceeded 100 billion yen, and 1990 increased to 23.5 billion yen. In 20 10, it reached an astonishing 300 billion yen.