Here’s your round-up of the most important news and views in the commercial aviation space in December 2018. We’ve scoured the web to bring you the information you need to keep on top of the latest developments in the sector. Enjoy!
Corporate Travel Works to Improve Air Bookings But a Full Tech Fix Is Still Elusive
Over the summer, the various big dogs of travel management and distribution announced a variety of partnerships to finally figure out how to bring airline merchandising and packaging into the corporate travel space. While IATA’s New Distribution Capability standards have existed since 2012, adoption by airlines has been scattershot. Not much has emerged from existing partnerships in corporate travel, although industry experts believe the latest round of partnerships and trials will be much more fruitful.
Digital Wallets Improve Loyalty Programs
Airline loyalty programs are great revenue generators, but the administration of these programs can be burdensome both for airlines and consumers. It is in an airline’s best interest to get consumers to spend their miles or points, and digital tools can lend a helping hand. While frequent-flyer programs help gather consumer data that can support personalization for better retailing, passengers who fly less often may not sign up. The Latvian airline airBaltic has introduced a new way for customers to earn credit for their spending with stamps, as part of their PINS loyalty program. This encourages customers to sign up even if they only fly a few times a year. AirBaltic also introduced a new digital PINS platform to help customers manage their accounts and spend their credits.
Singapore Airlines uses real time data feedback to take control
Singapore Airlines (SIA) launched its brand new operations management system today. Built in partnership with IT firm Tata Consultancy Services (TCS), SIA has high hopes for the Intelligent Airline Operations (IAO) tool, which it believes will transform how airlines handle service disruption as well as increasing the efficacy of ground services and operations control.
A review of 2018, a preview for what’s next: Blockchain in travel
Throughout 2018, PhocusWire brought you in-depth coverage of some of the critical topics impacting travel, organized by a different theme each month. As we prepare for 2018 to end and a new year to begin, we are revisiting each of these themes. We’ll look back on key developments of the past 12 months and look ahead, with additional perspective from the topical experts we interviewed throughout the year. We begin with blockchain, which we covered in-depth throughout February.
Global airline ancillary revenue will close in on $100B in 2018
Airline ancillary revenue is forecast to hit $93 billion in 2018, according to the latest report by IdeaWorksCompany and CarTrawler. The figure represents a 13% increase on 2017’s total of $82.2 million, which was a significant increase on 2016’s figure of $67.4 billion. According to the report, continued growth in the global airline industry accounts for 67% of the ancillary revenue increase in 2018.
Seamless order servicing in an NDC world
An offer is only as good as the experience you deliver. Imagine purchasing a recommended product on Amazon, expecting to receive it in two days, only to find out the package was lost in the mail. What if you purchased a premium-seat for your honeymoon but ended up in the back of the plane when a weather delay re-accommodated you to a new flight? In both cases, the offerings were tailored, but the delivery fell short.