The expectations of a digital consumer are set by the seamless, personalised experiences offered by companies like Amazon, Uber, and digital banks. Airlines are lagging behind and must rethink how they engage with customers. However, there are several obstacles to overcome first.
At Aviation Festival Asia, Gautam Shekar , SVP, IBS Software discussed the airline retail experience looking at learning points from other industries, the retail evolution, and the core challenges that need to be overcome.
Speaking on the industries setting the benchmark, Shekar explained:
“If you take the if you take the retail banking industry it is a business model that’s now delivered completely virtually. All their products, their services, their their servicing is all done virtually and it’s done through an omni channel mechanism. They’re able to do it with a high level of customer satisfaction and they’re able to solve complicated problems without any friction. It’s a great example to try and emulate.”
Shekar explained that although airlines can make a good offer, there is often friction when servicing the order. This is because although the industry is progressing on the offer side of retail is advancing with bundling, upselling, and an improved user experience, the order part continues to lag behind as a result of outdated systems.
When discussing the underlying problems holding back progress Shekar pointed to legacy systems and technology and organisational mindset. Once the digital foundations are set, the retailing possibilities are limitless:
“If you take any large transformation in any industry over the last few decades you will have naysayers you will have laggards you will have early adopters and you’ll have innovators it’s really who you choose to be.”
Watch the full interview below for more.
Questions asked include:
- What lessons can airlines learn from digital retailers when it comes to a customer-centric, frictionless experience?
- How have we seen the retail landscape evolve in recent years, and what are your predictions for the next 5 years or so?
- There are a range of obstacles slowing the industry’s retail progress. What would you say is the number one common problem you see, and what would your advice be?
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For more onsite at Aviation Festival Asia 2025 see:
- How did AirAsia MOVE secure a 65 per cent ancillary attach rate?
- What is the purpose of an airline alliance?
- The vision behind Air India Express’ route expansion
Also in the news:
Karen Chan on expansion, challenges, and diversity at AirAsia
President, Travel at PROS on delivering hyper-personalised offers: “AI is the secret sauce.”
Moderator insights: Steve Hui on loyalty trends & is the most valuable customer shifting?
Smart airline retailing: The new merchandising and revenue frontier