The Role – and Relevance – of a GSA
A good GSA holds the key to an airline's success and dominance in a new market.
‘We are a leading GSA providing representation, distribution, and commercial services to the airline industry.’
You must have read this line in the ‘About us’ section of our AirlinePros corporate website. As self-explanatory, to the point being simplistic as it sounds, it’s a niche business we are in, mandating some explaining for the uninitiated.
GSA: What’s that?
Let’s say an airline has announced an exciting new route. Imagine there is an identified, substantial, demand for the route. But how does the airline build a foothold in the local market? Making regional inroads can be tricky. Building brand awareness, sorting regulatory issues, establishing sales network – are some of the basics to get the marketing going. These take lot of time and humungous resources. Here is where the GSA comes into the picture, holding key to success.
And paving a fast track to market dominance and leadership.
With a good GSA by the side, airlines gain a foothold in the market.
GSA stand for ‘General Sales Agent’
Well, in an exciting and sophisticated industry like aviation, the full form of ‘GSA’ might sound unexpectedly plain – General Sales Agent. There are GSAs for most conceivable types of business. In aviation, GSA refers to a third-party company that is authorised by the airline to represent them in given markets, handling sales, promotions, and customer support.
GSSA: General Sales and Service Agent, meaning covering both sales and additional services such as customer care and operational support.
CSA: Cargo Sales Agent. A CSA promotes and handles air cargo services for an airline.
In the Solutions page on AirlinePros website, GSA is also shown as ACSA or Airline Commercial Services Agency. Well, we like the clarity too, sometimes.
A successful GSA
Running a successful GSA requires a wide range of expertise including commendable knowledge of the aviation industry, sales and marketing, branding strategies, and business operations. A strong local market understanding, network, and financial resources are crucial to ensure smooth operations.
As a leading GSA, AirlinePros’ senior management has a combined industry experience of over half a millennium, constituting an experienced team that is well-versed in airline operations, marketing strategies, and effective customer engagement. We have over 60 global offices, representing more than 70 airline and travel clients.
A good fleet and great routes are important. You need to fill the flights too.
Why airlines need GSAs? Some compelling reasons.
Cost-effective: Bringing a GSA on board does away with the need to build a dedicated sales team in the country or region. A good GSA ensures immediate access to a network of travel agents, corporate clients and industry contacts.
Locally yours: GSAs, by dint of their local partnerships and presence, understand the culture, legalities, and messaging tactics that clicks with local customers. For any new entrant into the market, this cultural strength is important to reach out effectively, probably avoiding misunderstandings, using local nuances better.
A thorough understanding of the local market makes the GSA an effective sales and marketing unit building brand awareness, devising targeted campaigns, meeting regulatory requirements, and driving tickets sales for the airline.
What GSAs should take note of
There are some issues which airlines seem to be somewhat wary of which the GSA can resolve through building confidence with their expertise and activities.
- The airline should never feel they are losing control over their sales and marketing activities. This means the GSA should work towards a collaborative partnership, ensuring open communication and understand the goals are mutually beneficial.
- Only a close collaboration and open communication with the airline can see to it that the brand message is in perfect sync with the marketing efforts of the GSA undertaken on behalf of the airline.
- Unless there is constant value addition and results, the airline might be tempted to establish itself in the region with its own sales teams.
- Besides the above reasons, a good GSA should also know that an airline might explore other avenues or alternatives like online travel agencies to leverage online booking platforms and joint partnerships with other airlines who are already there. GSA – The selection and process
New heights are achieved with the right GSA.
GSA – The selection and process
The process of selecting a GSA is usually through a formal tendering process where GSAs who are interested are invited to participate. They must then submit proposals outlining their experience in the industry, operational capabilities, proof of ability to meet the airline’s commercial and logistical needs, portfolio of credentials, and key assets like bank guarantees.
The tender also requires the GSA to outline their own understanding of the target markets and their business plans for the airline, enumerating how they will increase sales, ensure customer service and build a network with travel agents. After due diligence and proper reviewing of proposals, the GSA contract is awarded as the airline’s GSA in the market. The contract grants the GSA the authority to represent the airline, push its brand and promote its services and manage sales in the contracted region. This is indeed a win-win achievement for both the airline and the GSA.
The contract will include commission structures, performance metrics or KPIs to track effectiveness like sales and customer satisfaction scores. The contract also contains the duration of the contract and the specific territory it covers.
Like all strategic decisions, selecting a GSA should be taken through deliberations covering the airline’s own long-term growth objectives – and finding one that aligns with it. Once the perfect GSA has been partnered with, the airline/travel partner embarks on a profitable, fulfilling ride, realizing the full potential of the market, taking their business to newer heights.
- Thommen Jose
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Enter your email in the contact box to know how AirlinePros can develop a winning strategy for your aviation or travel business.
