THE TECHNOLOGY
Smooth operators
The air travel experience of the future will be very different, says Linda Fox, who discovers what's in store for business travellers in the not-too-distant future
investment and provide a better experience finally come to fruition. Just a few weeks ago airline IT specialist SITA
B
released its latest Airport IT Trends Survey revealing that 90 per cent of airports expect their technology spend to increase or at least remain stable in 2014. The key focus is the passenger experience,
with passenger processing technology the top priority among the 255 airports represented in the survey, between them covering 54 per cent of global passengers. Improvements to passenger services and
information are also on the cards, which is probably why about 95 per cent of airports say they plan to invest in mobile applications to keep passengers updated as well as help them through the airport. Services via social media are also planned by 75 per cent of airports by 2016, compared to the 56 per cent that offer them today.
race yourselves for a smoother passenger experience in the near future for your travellers if promises to increase IT
Much of the improvements will be underpinned by better business intelligence that draws data from numerous sources and enables organisations to apply it to every-day situations to increase efficiency as well as improve the experience. About 80 per cent of airports plan to invest
in new business intelligence solutions, enabling them to find and take advantage of new revenue streams. Business intelligence will also help improve passenger flow through the airports and generally help operations and the passenger experience. Aspirations from the airlines themselves as
regards both improved services and better intelligence are not dissimilar, especially when it means additional ancillary revenue for them. Research carried out during an Amadeus Airline eCommerce and Mobile Conference last summer revealed product options such as upgrades, on-board services and airport services as the top three ancillary products with the most revenue growth potential. Revenues from ancillary products have been steadily growing and are predicted to hit
“ Some airlines, such as China Southern with its on-board upgrade
auction concept, are already thinking ahead of the crowd
”
$708billion in 2013, representing six per cent of total revenue according to an IdeaWorks and CarTrawler report. And passengers, it seems, are happy to buy
more on board with figures from PhocusWright Consumer Travel report showing purchases of on-board services are growing faster than pre- departure services. Of course, this does not make the travel buying community happy. In-flight food and beverage has consistently
seen the most growth in the past three years followed by movies and entertainment and in-flight connectivity. Another interesting trend, highlighted
“ The key focus is the passenger experience, with passenger processing technology the top priority ”
recently by an Airbus study, is that it’s not all about technology to create a seamless travel experience; there are also some basic comfort needs coming to the fore. Although self-serving, the Airbus study was carried out on a good size sample of more than 1,000 long-haul passengers and shows travellers are spending time researching online elements, such as seat size before booking, that will make the journey more comfortable. The study also shows that more than 40 per
cent would be prepared to pay more for a more comfortable experience in economy. What’s clear is that airports and airlines are thinking of new ways to make money. It is interesting to note from the IdeaWorks study that US airlines make most ancillary revenue (60 per cent) from selling frequent flier points while traditional airlines outside of the US make an equal amount (30 per cent) from travel retail services (car hire, hotels, insurance) and the sale of frequent flier points. Some airlines, such as China Southern with
its on-board upgrade auction concept, are already thinking ahead of the crowd. What’s less clear is how businesses will work
out what to offer for free and what customers will be willing to pay for and at what price.
28 THE BUSINESS TRAVEL MAGAZINE
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