Sky-High Satisfaction: An Innovative and Optimized Passenger Experience
Unlock new opportunities to capture market segments, increase revenue, improve efficiencies, and solve challenges across the board.
Airlines must differentiate their customer experiences and engagement to stay ahead in a rapidly changing industry. This requires innovative use of emerging technologies and foresight to stay ahead of the competition and create satisfying experiences for customers.
Commercial aviation has undergone significant changes in recent years: exponential rebounds in post-pandemic passenger numbers fueled by revenge travel, and new technologies addressing consumer preferences driven by a shift toward more personalized and engaging passenger experiences.
This is due to a couple of key forces:
- Business travel hasn’t returned to the degree the industry had expected.
- Casual, leisure travelers are able to travel more often thanks to the flexibility of working remotely.
Airline leaders who haven’t shifted their view of the passenger experience are due to be left behind in an economy where consumers want more for their dollar, and therefore, as ticket prices increase, the industry will face pickier customers than ever. I’ve been following these developments and exploring how these leaders can position themselves to succeed in this evolving landscape.
Airlines and their partners can create memorable and differentiated experiences for their customers in a data-driven, highly personalized, post-pandemic world. Why? You’ll unlock new opportunities for capturing market segments, increasing revenue, improving efficiencies, and solving challenges across the board.
Casual travelers tend to show greater loyalty to their credit cards than to the airline’s branded lounges and perks, while business travelers who frequently fly on the same airline and have the financial means to gradually increase their status are more likely to prioritize building that loyalty with the airline.
Evolving expectations
One of the most significant drivers of change in the aviation industry is the evolving expectations of consumers. According to a study by Amadeus, the passenger experience will be the most important differentiator for airlines by as early as 2025. Passengers are increasingly looking for personalized, seamless, and convenient experiences that meet their unique needs and preferences; be it more direct routing, a comfortable airport and in-cabin experience, or friendly customer service. Those that can deliver on these expectations have a significant competitive advantage and are often the most profitable.
Passengers are also looking to be as connected in the airport or in the air as they are at home or in the office. Delta has already begun providing free Wi-Fi to all registered SkyMiles members, and it is taking that a step further with Parallel Reality. Parallel Reality describes a single screen that can display personalized information to 100 people simultaneously. Many are in the process of implementing a connected IFE system, which broadcasts news, live and on-demand content, and gate information conveniently on your seatback display during a flight. Additionally, new airlines like Taipei-based Starlux are looking to enhance the passenger experience at a sensory level with “Home in the Air,” an enhancement in fragrance and added botanical elements on board.
A functional app is the bare minimum
Technology and advanced data strategies have long been playing an increasingly important role in the aviation industry, and it will continue to do so in the coming years. It’s no longer enough just to have a well-functioning app, simply giving flight info and updates without crashing. Systems powered by artificial intelligence (AI) can analyze passenger data to provide them with personalized recommendations from everything to special pricing, upgrade offers, seat selection, in-flight entertainment (IFE) offerings, and even handling the most complicated customer service requests.
Biometric technology, for example, can streamline the entire airline travel experience: security screening, lounge access, flight check-in, baggage drops, and boarding international flights. With facial recognition and other biometric data, many Star Alliance-affiliated airlines are already testing this type of boarding on long-haul flights. In addition, robotics are being used to automate tasks such as luggage handling and serving food and drinks in lounges, freeing up staff to focus on providing more personalized service to passengers. Robotics could even assist those making inspections in dangerous environments, reducing the rate of delays, as when workers can’t access the tarmac due to adverse conditions.
Hard times spark new comforts
The COVID-19 pandemic also created opportunities for innovation and change. As airline leaders look to reassure passengers about the safety of air travel, they have explored approaches to satisfy the passenger experience. Touchless technologies such as mobile boarding passes and contactless payment systems are being implemented to reduce the risk of transmission. And these changes have helped create a better experience in a post-pandemic world, all while keeping passengers healthy. Premium passengers still prefer the convenience of table service in lounges where they can place requests using their phone rather than having to wait in lines at a bar, buffet, or concierge desk.
A variety of experiences
Creating differentiated passenger experiences is essential for airlines looking to stand out in a crowded market. According to an annual passenger survey by Inmarsat, the key to differentiation is understanding the needs and preferences of passengers and tailoring the experience to meet those needs. This can include everything from personalized in-flight entertainment options to curated dining experiences and exclusive lounge access. Millions of passengers transit through major hubs, but each experience could be as unique as each of our social media feeds.
Airlines that can create unique and memorable experiences for their customers will not only attract new customers but also build loyalty and increase revenue. But creating these experiences requires a deep understanding of the passenger journey and a willingness to innovate and experiment, and that requires compromise and often an initial investment.
There’s no “I” in team
As the aviation industry continues to evolve, there are several opportunities for airlines to position themselves for success. One of the most significant is the opportunity to create partnerships and collaborations with other industry players. Airline leaders can collaborate with a variety of stakeholders, including airports, technology companies, small startups with interesting technologies, and other airlines (both inside and outside their current alliances), to create more comprehensive and seamless travel experiences for their customers.
Another opportunity is the use of data and analytics to understand passenger behavior and preferences. By collecting and analyzing data from a variety of sources, leaders can gain insights into what their customers want and tailor the passenger experience to meet those needs. And those with the highest customer service ratings already understand this the best.
Those in the know are also taking it one step further, creating routes that were once unimaginable, but fueled by new capabilities of the next generation of aircraft and the demand of local markets.
What’s next?
As the aviation industry navigates the continually changing landscape, passenger experience will continue to be a critical factor in airline success. By leveraging technology like generative AI, biometrics, and robotics — and creating differentiated experiences — airline leaders can position themselves to stand out in a crowded market and meet evolving customer expectations without having to compete as much on price as previous disruptions in the industry required.
In an industry that is often rocked by disruption in all shapes and forms, commercial aviation is a touchpoint where consumers are often interacting with the cutting edge for the first time. By continuing to stay ahead of the curve and embracing innovation, airlines can create memorable and engaging experiences for their customers and position themselves for success in the years to come.
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