Accenture: 3 Ways Airlines Can Cater to Post-Pandemic Travelers and Generate More Revenue

This article has been written before Ukraine’s invasion by the Russian Federation

After over 2 years of sitting at home dreaming of travel, people are increasingly ready to travel. During the pandemic, we all relied on technology to work, play, shop, and socialize; travelers worldwide now expect technology to play a greater role in enhancing their travel experiences.

This is an opportunity for airlines to cater to consumers in a way they have become accustomed to elsewhere. It also enables the aviation industry to grow those all-important margins. Currently, some airlines are better positioned than others to make the changes needed that will allow travelers to buy and experience their travel with the extras they are looking for.

The industry has talked about implementing new commercial technology for years.  Now is the time to make it a top priority, keeping up with the level of experience consumers are now used to through their interactions with other industries.

This can require a big step up in investment, and many airlines are not really geared towards selling and servicing the new traveler. However, progress can be made without making huge investments, by applying a creative and pragmatic approach.

Consider these three ways to apply creative pragmatism to retailing in travel:

1. Take advantage of the assets that you already have. Every airline management team should question whether they are getting the most out of their existing applications. Travelers want it to be easy to make a purchase in the channel that works best for them. Airlines should use the investments they already made in marketing technology to the best of their abilities to deliver increasingly personalized marketing messages, and context-aware shopping experiences. Technology also opens up cross- or up-selling opportunities.
2. Sell more services. Improve the experience travelers have during their time with you and offer them a better service. Why should in-flight service be limited to chicken or pasta and only when the cart rolls down the aisle? Fast food restaurants have digital ordering in the restaurant and airlines can too, with limited investments. Margin improvements will follow.
3. Give customers reasons to shop directly with you. Airlines must make it more attractive for customers to buy directly. Simplifying booking, linking marketing, shopping, and other needs, such as car rentals and other services, gives customers a good reason to book through the airline. Redesign the experience and work within the existing technology.

Now that costs have been cut, rebuilding brand loyalty and maintaining travelers’ trust is the next mission.  

Feet on the ground. Head in the cloud.

Airlines that have invested in cloud technologies are prepared for a fast return of travel. With digital and marketing operations in the cloud, it is faster and easier to run small-scale tests of new retailing tactics. Cloud technologies also enable airlines to tie into pre-existing assets and collaborate with partners to improve the experience they offer to customers. Travelers have expectations, and airlines can harness the technology they already invested in to start meeting their needs.

Jonathan Sullivan
Managing Director, Strategy & Consulting, Travel at Accenture