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