A VIAT ION
“premium economy” than “business” (Joon excepted), it’s not yet clear how disruptive this will be, with customers facing more choice than ever. Te strategy isn’t new – British Airways tried it short haul with Go, and United with Ted; both cannibalised their parent’s products, lowering profits, and so these sub-brands were dumped.
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GOOGLE FLIGHTS TAKES OFF All this comes at a time when airline-related technology is also subject to enormous change. Just when the likes of Expedia and Skyscanner felt they had consolidated their positions, in 2011 along came Google Flights – which allows users to track prices, check pricing graphs, and factor in alternative dates and flight options at alternative airports. While this is happening, Google is able to collect (and react to) data already available from the booker’s use of the search engine, something most other sites (including the airline’s own) can’t do, giving Google an advantage. Technology is important for most frequent travellers.
IATA’s 2017 Global Passenger Survey found that passengers expect technology to give them more “personal control over their experience”, with aviation think tank CAPA (Centre for Aviation) reporting that the “majority of passengers just want to get through the airport as fast as they can”. It explains why traditional check-in desks are almost retro in 2018, with smartphone check-in followed by automated boarding oſten replacing human contact. Technology also presents a challenge to travel
management companies, who are being forced to present their customers with solutions that provide a similar level of immediacy and flexibility throughout the travel management process. In the case of direct bookings, where the technology reduces the number of staff needed and can oſten cut costs for passengers, for a TMC it’s an extra facility to provide that has no impact on staffing requirements. Te added expense is then passed on to consumers, in the short term at least. Disruption has brought greater choice and cheaper tickets, but sometimes less comfort as airlines pack more passengers into the same
S E P TEMBE R 2 0 18
space. Space can no longer be taken for granted, even on established carriers; legroom in economy shrinks while the more profitable premium economy, first and business classes expand. As technology hastens the advent of ultra-long haul aircraſt, which can currently fly non-stop for 17 hours, this will raise new issues, including health and safety: spending a day in an economy seat may not be appealing or even feasible for some.
WHAT IT MEANS FOR PASSENGERS Consumers have seen the impact of disruption in aviation more than in many other industries. Te variety of options available today would have been unthinkable only a few years ago. On the one hand, there are fully enclosed suites available in first class; on the other, some airlines are charging for water. Given the cyclical nature of most economies, airlines
Without state support, many well-known legacy and national airlines would fail
face the challenge of finding sustainable business models that attract consumers, but are also profitable. What innovation we will see over the next ten years will also depend on the increasingly high expectations that demanding, but fickle, travellers continue to set. Te hope is that competition will improve customer experience, and new airlines will continue to launch. Paradoxically, without state support,
many well-known legacy and national airlines would fail; and without regulation, mergers would reduce choice and perhaps competition. We all want to enjoy the best service (and safety) for the lowest price, yet we frequently complain about what we receive. Tese complaints tend to be most oſten directed at the airline and oſten through social media, but the overall industry may also be to blame; and behind that, governments; and perhaps, ultimately, ourselves. Disruption is inevitable, but we need to realise it is partly driven by what we, the consumers, demand. BT
busin e s s t r a ve lle r . c o m
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