For over fifteen years, the World Aviation Festival has been the premier conference for the aviation industry to gather and discuss the latest trends and topics. With over 4,500 attendees representing a broad spectrum of airline executives and professionals, this year’s event in London was another success. As a leading business partner of the global airline and travel industries, Infare was part of the conversation. From the latest digital strategies being utilised to capture customers to the growth of ‘freemium’ pricing strategies, here is a look at some of the key takeaways and 5 aviation industry trends from this year’s event:
1. The future of NDC
Introduced several years ago, IATA’s new distribution capability (NDC) is gaining traction in the aviation industry. These standards will provide airlines with the opportunity to reach consumers more effectively, resulting in increased profitability. While change has been slow to come, early adopters are seeing the benefits. Attendees at this year’s festival were buzzing about how utilising NDC can revolution the industry.
2. The use of big data is soaring
As the aviation industry continues to expand its digital footprint, airlines are collecting an incredible amount of data on their customers. By utilising this information in combination with advanced pricing intelligence, airlines can present targeted offers to consumers. With use of big data and multi-channel digital engagement becoming the norm, it is imperative for airlines to offer the right price at the right time for the right product on the right channel. It’s all about data, data and data.
3. The importance of staying technologically nimble
To harvest the power of NDC and big data, the aviation industry must stay ahead of the curve when it comes to technology. The expanded use of machine learning and artificial intelligence (AI), coupled with the growing appetite for big data, will lead to the increased automation of pricing decisions. According to a recent PROS survey, technology and customer experience are the number one focus of the aviation industry. But with only 8% of respondents looking at digital transformation over the past three years, airlines must become more agile to stay competitive.
4. Ancillary revenue continues to rise
With revenue from ancillary products growing at a staggering rate, airlines are eager to develop new ways to capture these profits. From launching chatbots that provide customised online experiences for consumers to subscription services that provide discounts for ancillary services and even pre-paid travel at a monthly-rate, airlines are seeing considerable profits in these non-airfare charges.
5. The buzz about freemiums
For years, e-retailers have engaged the use of freemiums to bring in consumers. Under this model, a retailer gives away a service or product at no cost to a customer to establish the foundation for future transactions. Will airlines be able to adopt this model? Only time will tell, but some believe it may be possible.
Learn more about trends in the aviation industry
Join Infare InsightsSubscribe
YOU MIGHT ALSO LIKE:
For many years Low-Cost Airlines have been a disrupting force in the airline industry with their direct distribution model and […]Read More ›