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  • Partner Update
30 May 2024

Coforge: Focus on Tailored and Frictionless Journeys

The airline industry is soaring through a period of profound transformation. Fuelled by technological advancements, shifting customer demands, and fierce competition, the travel landscape is being reshaped and airlines are increasingly turning to digital initiatives. This digital revolution not only enhances customer experiences but also streamlines operations and provides a vital competitive edge. Embracing digital retail strategies, powered by distribution with offers and orders and fulfilment with orders is proving to be the critical runway for airlines on this transformative journey.

Why is digital retail taking flight now?

Passengers crave personalized experiences & options, seamless interactions, and real-time information access. Modern retailing enables airlines to meet these demands by offering a more flexible, agile, and customer-centric approach to travel.

In our experience, we have seen that adoption of a digital retail model unlocks a treasure trove of advantages for airlines, including:

  • Elevated customer experience: It allows airlines to deliver personalized, consistent, and omnichannel experiences across all touchpoints, from initial booking to post-travel interactions. Journeys are tailored to individual preferences, with travel recommendations, payment preferences and special offers throughout the customer journey. Seamless interactions eliminate friction points, and customers can interact with the airline through their preferred channels – mobile app, website, and social media – creating a unified and consistent experience.
  • Enhanced agility and flexibility: Digital retail empowers airlines to respond swiftly to new opportunities & market dynamics. Pricing strategies can be adjusted in real-time, and new offers introduced seamlessly. Dynamic pricing allows airlines to personalize fares based on individual customer profiles and travel patterns, maximizing revenue. Additionally, airlines can capitalize on emerging opportunities and respond to customer preferences with custom offers.
  • Revenue streams take off: Digital retail unlocks new revenue streams, presents up-sell & cross-sell opportunities, not just through the current ancillary products, but is a platform for airlines to expand partnerships with other leading brands to create unique experiences, offers and products. Several airlines have enhanced their e-commerce capabilities on web and mobile channels to offer upgrade options, baggage fee collection, seat selection, and travel insurance, generating additional income. Furthermore, airlines are investing in targeted marketing campaigns and dynamic pricing strategies as a way to lay a foundation for a marketplace for tomorrow. With targeted marketing campaigns tailored to specific customer segments, airlines want to maximize the impact of marketing spend. Finally, dynamic pricing strategies optimize revenue by adjusting prices based on demand, market conditions, and customer behaviour.
  • Reduced distribution costs: Bypassing traditional intermediaries, airlines can streamline distribution processes, reduce costs, and gain greater control over pricing and branding. Additionally, airlines maintain consistent brand messaging and pricing across all channels, maximizing brand equity and revenue generation.

Digital retail: the future of air travel

By leveraging the power of distribution with offers and orders and fulfilment with orders, airlines can secure a winning position in the competitive, technology-driven landscape of the future. Coforge enhances airlines’ digital retail operations with its proven frameworks and structured approach, ensuring a smooth transition from the existing legacy system to elevated experiences.

To learn more, reach out to us now at travel@coforge.com.

 

Pranjali Bhatia  
Associate Vice President, Aviation Practice, Coforge  

 

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