are seeing a lot of uses of the AR/VR revolution. For example, digital technologies can enable an airline to reduce the planning cycle from the standard 12 months for the development of schedules to a few weeks, but it calls for major changes in revenue management and reservations functions – a discussion for a different column. Further, during any flight, a huge amount of data is generated with regards to pilot reports, incident reports, control position, warning reports etc. Digital technologies are changing the landscape of every industry and the digital revolution in the airline industry has just begun. Though the implementation of a 360-degree implementation of IoT systems by airlines still has a long way to go, the process has definitely started on the right note. Thriving in the Age of Data and Digital Transformation Geneva – The International Air Transport Association (IATA) announced that supporting airlines’ ability to thrive in the coming age of data and digital transformation will be the focus of the 2019 Aviation Data Symposium. E.g. In just two years, today, a lot of biometric-enables single token platforms have been introduced, and airlines and airports are leveraging them to revolutionise passenger experiences. Today a century later the airline industry has grown by leaps and bound. The aggressive revenue targets for all sales channels have also become a challenging dilemma for airlines. Available data shows that ancillary revenues of at least five airlines comprised more than 40% of total revenue. EasyJet has also introduced wearable uniforms for its crew and ground staff. Digital transformation is of critical importance for the airline industry recovery from the pandemic. Airlines in a digital transformation should judge the business value of each IT initiative by the lights of their strategy, their customer-satisfaction level (if that isn’t a strategic issue), and the business case. In the end, every great … Image source – Futuretravelexperience.com. Industries like retail, healthcare etc. But which areas to focus on and how to scope it? Nevertheless, a number of common misconceptions about what digital transformation entails and misrepresentations concerning how it should be approached (and executed) are making transformational digital programmes some of the most challenging and risky of airline endeavours. Tags: digital-transformation, airlines. Digital Transformation in the Airline Industry. Blockchain technology gives an opportunity to create a process of identity management where the passengers and the airlines will not have to rely on the physical ID proofs to validate passengers’ entity and passing over that information through multiple channels. Another example of AR technology enhancing the airport experience is San Jose International Airport partnering with the Google Tango team for a trial of augmented reality technology in wayfinding, through airport retail promotions and even AR billboards displaying destination information. E.g. Added to that, passengers today now fully expect a seamless digital experience, and airlines and airports need to develop a strong digital identity to engage them. Banking and finance, especially, is being challenged by the onslaught of digital firms offering user-friendly mobile and virtual banking and other products and services, presenting legacy brick-and-mortar firms with two options – change internally or acquire those same disruptors to leap-frog the development of digital technology. The global digital transformation market size was valued at USD 284.38 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 22.5% from 2020 to 2027. Airlines should carefully assess which components should be replaced or transformed and which should not. Passenger experience Blockchain can help the industry to ensure that these records are virtually recorded. In a digital world, every industry strives to add value to their customers’ lives. There is widespread recognition among industry leaders that the role of digital technology is rapidly shifting, from being a driver of marginal efficiency to an enabler of fundamental innovation and . The airline also has a recognition tool that reads passports and fills out all the information for flyers—easing out the data entry and data management tasks more manageable. In our article, we take a detailed look at how Airlines are using the mobile platform to create delightful customer experiences. When it comes to battling the effects of COVID-19 in the business sector, digital transformation can be considered the first defense line. Robot NAO, a 58cm-tall humanoid robot at built by Japan Airlines was placed at the Haneda Airport and could help. and provide tailor-made offers to them. Jonathan Keane. Innovation in airline digital retailing can help airlines stimulate demand and … Facial recognition is another application of the biometric technology being used at the airports. The airline industry has not just seen an avalanche of passengers but also an immense shift in the way it operates, thanks to the new and exciting technologies impacting the airline landscape. 2 Embracing Airline Digital Transformation Methodology For this report, Amadeus undertook primary and secondary research in association with Connections Events, The Telegraph and various industry experts. The airline is using a combination of these technologies to make sense of all the available data and use these insights to create offers and services personalised for individual travellers. Simply put, there is a lot of untapped potential in the sector. Baskar Rengaiyan. The commercial aviation industry is, in fact, one of the more obvious candidates for digital transformation. For more stats on the state of digital transformation in the airline industry, check out the infographic. Latest News. Considering the current pace of market penetration, we can observe a huge … This is especially true for those focused on the digital side of business. The digital revolution, which began almost a quarter of a century ago, has had a huge impact on everyone's lifestyle. For example, digital technologies can enable an airline to reduce the planning cycle from the standard 12 months for the development of schedules to a few weeks, but it calls for major changes in revenue management and reservations functions – a discussion for a different column. The impact of digital transformation on airport processes, business models and passenger experience. As a concept, we mean the strategic re-engineering of an organisation’s operations, technology and processes for the digital customer. Delta Airlines recently started providing their passengers’ virtual boarding passes 24 hours before their journey through their mobile app, easing out the check-in process for their passengers. Airlines and industry vendors have tended towards 5-year contract terms in the past. Airlines are under siege as innovative new services place themselves between the airlines and their customers. easier for the travellers, they are also using apps in innovative ways to provide awesome in-flight experiences to the customers. Further, AI also has the potential to ease out various operational processes of airlines like revenue management, managing ticket pricing, etc. Last year McKinsey released a report that was critical of the weak attempts to improve hyper-personalisation by airline companies. VIEW MORE POSTS. Beyond that procedure, passengers needn’t exhibit any further documentation – their face is enough to grant them access through to gate barrier, and they can proceed to the plane. The app is connected to Jawbone fitness wrist band and enables flyers to view their activity and sleep patterns throughout the flight and creates personalised insights based on their sleep and activity patterns. This Robot is linked to a digital information screen, and as well as being able to hold interactive dialogue, it can present useful information on the digital screen when prompted, including airport facility information, arrival and departure flight information, and destination weather forecasts. Airlines are being fostered to transform their businesses, to catch up with or be ahead of technological trends, such as social media, cloud computing, mobile connectivity or big data. However, in the area of digital retailing, shorter contract terms are a better way of coping with changing needs. Innovation in airline digital retailing can help airlines stimulate demand and … Airlines can use this data to understand customer preferences in real-time based on data of their purchase history, travel itineraries etc. Adopting the Biometrics Technology at airlines and airport touch points is one such attempt by the industry. Partnerships with technology solutions providers such as SCC And HPE are driving overall corporate strategies – with IT taking a much bigger role than ever before at the boardroom table. Learn more about how Branchspace can help boost online conversion. Emirates Airline president Sir Tim Clark warned of disruptive changes in the airline industry that new technologies are going to bring in the near future, saying that airlines must put data and technology at the centre of their business. Airline operations are complex, siloed, manually driven and lacking collaboration. Copyright © 2020. However, simply adding some tech gimmicks into your customer journey hardly counts as full-scale airline digital transformation. Banking and finance, especially, is being challenged by the onslaught of digital firms offering user-friendly mobile and virtual banking and other products and services, presenting legacy brick-and-mortar firms with two options – change internally or acquire those same disruptors to leap-frog the development of digital technology. The race to achieve successful digital transformation in the airline industry is good for competition and, ultimately, good for travellers. It is also equipped with built-in microphones to enable direct communication with passengers. Digital transformation has already revolutionised the aviation industry, with innovative new business models rapidly transforming core and non-core functions for early adopters. Everyone wants to be like Amazon – for example unbundling and re-bundling within the shopping basket, personalised and contextualised offer management, and seamless handling of delivery and service issues. digital transformation Digital technology has played a vital role in the manufacturing industry for years. We can also add two layers to prioritize DT: customer’s experience/ease of life and budget requirement. It is useful to make a pragmatic evaluation or breakdown of components into the following categories: a. But what does digital transformation mean? EasyJet and British Airways are among the airlines that have created apps for the Apple Watch, enabling passengers to store boarding passes and receive real-time updates on their wrist. As it stands, the two most fundamental recent trends and probable future directions of evolution in the airline industry are consolidation and digital transformation. Airlines have started venturing into the world of mobile solutions and are using this platform to connect with their customers throughout the passenger journey starting from booking of a flight till deplaning it. This allows blockchain to be used as a ledger which is accessible by anyone with permission to do so. Managing Director – Global Industry Sector Lead Travel. Ensuring that every information regarding the procurement of the parts of the aircraft, the maintenance history, person who has handled the maintenance, modifications that were done etc. By using machine-learning algorithms, they have built an automated system capable of crunching vast data sets to warn about anomalies and to prevent potential accidents. Predictive analytics can pre-empt any delays that might happen due to the weather forecast and in-turn inform the airline staff about it to keep their customers updated. Similarly, the robot, named Pepper, launched by EVA Air, scans boarding passes to provide departure details, gives passengers weather updates for their destination, and informs them of duty-free special offers and airline promotions. The airline is using the deluge of data that it is collecting through these flights to improve the efficiency of the aircraft and also being pro-active. Some of the examples of airlines using wearable technology are: Recently Japan Airlines used Microsoft’s HoloLens for training its new crew members and engineers. Air New Zealand has launched a biometric-enabled bag drop to speed-up the check-in process. Glad to know about the current eco system of airline industry and the approach for digital transformation. Investment in UX/UI designs should occur early on to promote clarity of the use case amongst your vendors’ teams. Understanding the full scope of a customer's journey and the numerous points at which s/he interacts with your company's products and services will serve as a guide when modernizing operations. Wearable technology might still be in a nascent stage. These programs, based on modern standards, will liberate the industry from a century of accumulated legacies and deliver a much-needed modernization of distribution and back office processes. The technical and business complexity of digital transformation is often underestimated. Back then, it was a mode of travel only for the elite; the first air ticket ever sold was purchased for $400 (a sum that would be equal to $10,000 today). Right now one of the most obvious applications of these technologies can be expected to be seen in the airport space where the airport experience can be enhanced with the help of AR/VR based apps. Tags: digital-transformation, airlines. The customer data advantage . Be prepared to sacrifice scope on an ongoing basis in order to deliver to original cost, effort or timeline targets. – Saving costs Growing demand for the adoption of the Internet of Things (IoT) across industries is promoting the introduction of connected and data-rich solutions From chat bots to voice-based AI tools there are umpteen use cases of AI being utilised. Emily Weiss . Another, example of wearable devices being used to improve flight experience is the SkyZen app launched by The International Air Transport Association. It’s safe to say that every airline and airport agrees that digital transformation is necessary. Airlines not just are using mobile apps to make the entire process of booking flights, check-ins etc. Airline maintenance – Airlines have to deal with a humungous amount of data including cumbersome databases and sometimes manual binders when it comes to keeping a log of maintenance records. According to Jonathan Vaden, lead of the project “Once augmented reality technology becomes ubiquitous, we will see many new and creative ways in which airports around the world begin taking advantage of its capabilities.’’. Surabhi Ghosh Chatterjee is our soft spoken Marketing Communications Manager with an extensive experience in B2B marketing in the tech domain. This company has dramatically transformed itself from one of the world's deadliest airlines into one of the safest airlines in the world with the maximum seven stars rating. United Airlines uses a smart ‘’collect, detect, act’’ system to analyse around 150 variables in the customer profile including their previous purchases, preferences etc. The constraints of legacy distribution, especially in cases where GDS Full Content Agreements are still in place, is also a hurdle for airline companies. According to recent research by Frost & Sullivan, digital transformation programs in the airline industry could generate an incremental value of $5-$10 for every passenger, annually. Airlines are under siege as innovative new services place themselves between the airlines and their customers. Learn about opportunities & potential pitfalls as the travel industry journeys towards a more digital, connected & hyper-personalized future. Throughout the journey, the flyer might have to download a minimum of 3-4 apps for a complete digital experience like an app for car rental, airline app of to and fro destination, hotel etc. Another example of implementation of IoT by airlines is EasyJet’s Mobile Host at London’s Gatwick Airport. 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