Top 5 Global Airlines Industry Trends

Key Points  

1. It's a new passenger out there; airlines will need to build 'social' pace to create brand equity.  

2. The customer's world is both online and offline – balancing between both holds the key to success.  

3. Analytics – an 'altimeter' for the airline business.

4. A shift in the direction of revenue generation. 

5. Greater emphasis on the regulatory and standardization route.

The trajectory of the global airline industry somewhat mirrors that of an aircraft — sometimes soaring to great heights, while at others, experiencing dips. Caught between these highs and lows lies the story of this industry: survival, change, and the trends which further shape its future. The following are five of these key trends propelling forward the narrative of the airline industry:

‍

Trend 1: It is a New Passenger Out There; Airlines Will Need to Build 'Social' Pace to Create Brand Equity.

Many leading airlines are using social media to connect with customers in innovative ways, creating stronger relationships and lasting impressions. For instance, campaigns like Virgin Atlantic's "Looking for Linda," KLM's "Meet & Seat," and British Airways' "Perfect Days" encourage passengers to engage on social platforms while simultaneously enhancing brand equity.

However, not all airlines are well-equipped to handle the demands of social media management. Real-time engagement with customers requires dedicated teams that can respond to queries, complaints, and feedback promptly. With social media interactions increasing exponentially, airlines must establish robust strategies to keep pace with evolving customer expectations.

Through collaborating with experts in social media management, airlines can effectively organize and extend their presence across the online channels. Thus, they are capable of building more loyalty and recognition for their brands by engaging with today's most highly connected travelers.

Trend 2: The Customer's World is Online and Offline – Airline Business Strategies

The Internet has completely transformed air travel, with nearly 75 percent of air tickets purchased online. Services such as web check-ins and mobile applications have added convenience to passengers, while smartphones are emerging as powerful tools for customer engagement and revenue generation.

Despite this digital shift, the offline channel, particularly customer service centers, remains crucial. Travelers still value the personal touch when resolving service-related issues or addressing technical challenges during online transactions.

By integrating online and offline channels, airlines can create a seamless customer journey. For instance, features like click-to-call on websites or travel platforms can direct customers from digital touchpoints to live agents, ensuring a smooth transition between channels and reducing drop-offs.  

Trend 3: Analytics – An 'Altimeter' for the Airline Technology Innovation

Data is the new currency, and through all possible channels, airlines generate humongous amounts of data. The data reflects passengers' preferences, the challenges airlines face in operation, and areas of opportunities. Analytics will empower the airlines to take data-driven decisions and optimize their services, hence improving customer satisfaction.

Analytics is used for a lot of applications such as social media analysis, contact center performance, and revenue modeling. For instance, predictive analytics can determine historical patterns that will be useful to predict customer needs and preferences. This can allow airlines to provide a customized experience.  In this respect, analytics serves as an "altimeter" for the airline business. It gives the airline critical information needed to navigate through industry challenges and remain competitive.

Trend 4: Changing the Course in Revenue Generation

The global airline industry growth factors are always evolving in regulations, from environmental compliance to pricing transparency. For instance, airlines in the European Union are penalized for exceeding emissions limits, while U.S. airlines must now include all taxes and fees in advertised fares.

While regulations are aimed at improving passenger safety and sustainability, they drive up operational costs. This places a burden on the airline to find innovative methods of offsetting these costs that are not passed on to customers. Process optimization, streamlined compliance programs, and strategic cost management can make navigating this complex landscape less complicated for airlines. 

Trend 5: Increased Focus on the Regulatory and Standardization Route

Standardization initiatives such as IATA's Simplified Interline Settlement are changing the airline industry. These mandates are designed to make processes such as interline billing and settlement more efficient, cost-effective, and accurate.

As airlines respond to such changes, it is important for them to adopt cost-efficient solutions and streamline processes. Strategic partnerships and the incorporation of cutting-edge tools are going to make airlines follow industry standards and enhance operational efficiency as a whole.

One Point One Solutions offers an all-rounded package of services tailored to the unique needs of the airline industry. From social media management to advanced analytics and process re-engineering, we provide the tools and expertise necessary to stay ahead in this competitive market.  

Our solutions include:

- Social media management and customer engagement strategies.  

- Seamless integration of online and offline customer service channels.

- Advanced analytics solutions to fuel decision-making. 

- Comprehensive compliance support and process optimization for regulatory compliance.

Next Step: Transform your airline operations. Join the Innovation Train and redefine your business with One Point One Solutions. 

Optimize your airline business with us and fly towards a future of sustained success.

‍