Google

ASEANAFFAIRS
Sign up | Log in

    ASEAN PROFILES

  ASEAN KEY DESTINATIONS

PR Today

Home >> Press Release

AIRLINES - GETTING SMARTER, MORE MOBILE AND PERSONAL

Industry survey shows all airlines investing in business intelligence, mobile and personalized passenger services  

Air Transport IT Summit, Brussels – 19 June 2013 – Over the next three years, all airlines plan to invest in IT systems which will allow them to get to know their passengers better and deliver tailored services directly to them, according to the 15th annual SITA/Airline Business IT Trends Survey.

This year 100% of airlines surveyed plan to invest in business intelligence (BI) solutions, which allow them to know more about their customers and have better information for decision making in their operations. This is a huge jump from last year, when one in five airlines had no plans at all. By 2016, 97% also plan investments in mobile passenger services and personalization. Together these will help boost sales via direct channels, from 54% up to 67%, and change how airlines deliver services to passengers.

At the launch of the 2013 Airline IT Trends Survey Results, Francesco Violante, SITA CEO, said: “All airlines are investing in business intelligence to improve their operations and boost revenues. We see a strong desire to increase revenues using techniques borrowed from the retail industry, including personalization. Nearly three quarters of airlines rate business intelligence for sales and marketing as a high priority. The airlines’ investment plans show the future of the industry is smarter, more mobile and more personal.”

The need for investment in business intelligence is evident. Only 9% of airlines currently rate data quality as meeting all their requirements, while just 7% have achieved the necessary integration of different data sources from across their company.

Violante added: “Sharing and integrating data is fundamental to successful business intelligence solutions. To make it work all parties across our industry need to collaborate. By sharing data and working together, we can maximize return on investment and deliver a better passenger experience, as well as improved financial performance.”

Over the last three years, offering mobile services to passengers has topped airlines’ investment list. It retains the number one place with 97% of airlines now investing, or planning to invest, in this area in the coming three years. By 2016, nine out of ten airlines plan to sell tickets via mobile phones. They expect to be rewarded with a leap in mobile sales to more than US$70 billion by 2016, or 10% of total sales, up from just below 3% today.  By using this and other channels, airlines aim to reduce their dependence on indirect sales and open up the opportunity to maximize ancillary sales.  Mobile phones, kiosks and social media will represent nearly 14% of ticket sales by 2016, while indirect sales through GDSs will reduce from 46 % to just 33% of sales in the same time period.

Violante said: “Mobile’s dominant role is clear. Airlines continue to focus on services available via the airline website, such as flight search and check-in. But in an effort to differentiate passenger services a new battleground of mobile functionality is emerging. The result will be a much deeper integration of personalized mobile services at every step of the journey for passengers on the move.”

Check-in apps, for example, are already available from 61% of airlines and flight search from 65%. The focus for these airlines will now shift over the next three years to add new services, such as missing bag reporting (60% of airlines), re-booking (63%), and customer feedback (57%).

Currently, 53% of airlines provide mobile boarding passes through their own airline application and this is set to rise to over 80% in 2016. Third-party travel wallets, such as the Apple Passbook, Samsung Wallet and Google Now, are also starting to feature. Today, only 21% of airlines provide boarding passes through other apps, but it will reach 62% in three years, giving passengers more choice.

The main challenges airlines face when trying to implement mobile services are the pace of technology change, too many platforms and system integration. To keep up with all the changes, airlines may increasingly use APIs such as SITA’s Boarding Pass from developer.aero.

This year’s survey revealed that ancillary revenue is of growing importance. Direct sales channels, such as the airline website, currently drive these revenues. Despite the fact that indirect channels account for nearly half of ticket sales, airlines earn on average nine times more ancillary revenue through direct channels. This looks set to continue, with 89% of ancillary revenues expected through direct channels by 2016, an increase from 87% today.

As well as boosting ancillary opportunities, direct sales save distribution costs. Over the next three years, nearly half of the airlines (49%) plan major programs to upgrade their core passenger management systems as the shift to more direct sales across multiple channels continues.

The Airline IT Trends Survey is an independent poll of senior IT personnel working within the top 200 passenger carriers. Airlines representing half of the global passenger traffic responded to this year's survey: 14% of respondents are classified as low cost carriers, and 26% are airlines carrying over 20 million passengers.




Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates
Contact: marketing@aseanaffairs.com

Comment on this Article. Send them to  your.views@aseanaffairs.com

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
 
or
submit your comment in the box below



 
Today's  Stories    21 June 2013 Subsribe Now !
• AIT to promote Habitech Building Technology in Africa Subcribe: Asean Affairs Global Magazine
• Marking ASEAN Dengue Day Asean Affairs Premium
• Thailand and the Philippines to Sign Three Important Documents
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• 101,000 Singapore millionaires in 2012
• Port project all at sea: Vinalines to pull out
• Myanmar must stand tall on illegal wildlife trade
Asean Analysis            21 June 2013 Advertise Your Brand
• Asean Analysis- June 21, 2013
Kerry, Wheels Up to Asia…Wait, the Middle East and Brunei
• Asean Analysis- June 21, 2013
Still Window-dressing’: Civil Society Launches Third Performance Report on the AICHR
• Asean Weekly: The Biweekly Update
Asean Stock Watch     20 June 2013
• Asean Stock Watch-June 20, 2013  

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan

ASEAN  ANALYSIS

This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

 

Name

Name


Email

Email



1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand
asean@aseanaffairs.com