We haven’t mentioned Blockchain, for quite some time.
We at Travel in Motion have already published numerous blogs, white papers, and podcasts about, hopefully, relevant subjects in our industry. But until now we have only once discussed blockchain and this was quite some time, ago. Are we missing out on something? Or are we “clever” enough to know that blockchain is simply a buzzword and will disappear like many others that were once hype and are now out of sight, out of mind? I think it is a case of “neither one nor the other”. As many others, we have mixed feelings about the relevance of blockchain technology in commercial airline IT. Thus, we are simply not yet confident enough to take a definitive position.
Maybe it would be helpful to summarize what blockchain technology really is and where it makes (or could make) the difference in comparison to “traditional” systems, such as databases. For me a good, but non-scientific start to get a high-level understanding of a new topic has often been Wikipedia, which describes blockchain as:
“A distributed ledger with growing lists of records (blocks) that are securely linked together via cryptographic hashes. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data (…). The timestamp proves that the transaction data existed when the block was created. Since each block contains information about the previous block, they effectively form a chain (…), with each additional block linking to the ones before it. Consequently, blockchain transactions are irreversible in that, once they are recorded, the data in any given block cannot be altered retroactively without altering all subsequent blocks.”
Comparing blockchain technology with traditional database technology shows that it delivers advantages. IBM provides an informative and easy-to-read summary on their website, which I have used for this blog:
Enhanced security: as the records are distributed over numerous entities with an end-to-end encryption, fraud-like manipulation of data and other unauthorized activities are simply not possible.
Greater transparency: as a blockchain uses a distributed ledger, all data and transactions are recorded identically in multiple locations. Thus, all participants see the same information at the same time, leading to transparency.
Instant traceability: through blockchain the provenance of data is documented and can be audited.
Increased efficiency and speed: compared to traditional paper-heavy and manual processes blockchain technology can lead to faster and more efficient execution.
Automation: through “smart contracts”, transactions are automated when pre-defined conditions are met. Smart contracts are programs stored on a blockchain that run when predetermined conditions are met.
As I am not a computer scientist, I am still not 100% sure if I understood all the above, but it has at least given me a view of where blockchain technology may provide advantages over traditional database technology. In a traditional database setup, data is stored in tables and can be modified any time. Blockchain is more secure, more or less immune to fraud, transparent and does not require a centralized third party to secure the system. Through this, blockchain as a technology creates confidentiality and trust without being managed centrally.
The probably best-known use of blockchain technology is cryptocurrencies. I must admit that the volatility of values, stored in and managed through cryptocurrencies does not impress me – it even makes me suspicious. But cryptocurrency is just an application that uses blockchain technology and it is probably the best proof point that the underlying blockchain technology really works.
So, what does this mean for commercial airline IT systems? Our ecosystem can also be characterized as an environment where participants are globally distributed, representing different interests with a need to cooperate, and where values are shifted through digitalized channels, requiring the highest security and traceability. Doesn’t this ring a bell? Aren’t these the characteristics that also describe the advantages of blockchain technology? Blockchain is exactly a technology that meets the requirements described above. The issue is only that these requirements already existed long before blockchain became available – and not only that, also these requirements have already been solved long before blockchain appeared on our radar screens. So, is blockchain a wonderful technology that addresses issues which have already been solved in our industry? I think there is an element of truth in this. Replacing legacy technology and processes for the sake of using modern technologies has always been a big challenge and an issue in our industry. Or in other words, while blockchain promises a lot and has also proven to deliver what it promises from a technological standpoint, what are the potential areas of use in our industry? What are the killer use cases for blockchain technology in commercial airline IT? In settlement process? Or distribution perhaps? Or perhaps even a combination of NDC; offer and order management together with blockchain – doesn’t this sound more like a nightmare to some of us?
But as of today, most of us still feel that blockchain is a technology that is rising and becoming more mainstream, but we do not yet know how it will be utilized and what impact it will have. Therefore, I come back to the point mentioned earlier in this blog. We at Travel in Motion are not yet confident enough to take a definitive position. This time we need your help: how do you see blockchain in commercial airline IT? Where do you see a value add? Where do you see use cases? We are looking forward to receiving your thoughts!
SITA finds aviation CIOs are “ramping up digital technology investments”
Earlier this week, SITA published their 2022 Air Transport IT Insights report. The study’s overall findings indicate that “aviation CIOs [are] ramping up digital technology investments.”
David Lavorel, CEO SITA said:
“Air travel has recovered faster from the pandemic than anyone in the industry had initially expected, particularly in Europe and the US. While the recovery is welcome, airports and airlines have found themselves on the back foot with staff and resource shortages. This has put strain on operations, resulting in an increased risk of congestion, delays, cancellations and mishandled baggage. Digitalization is seen as key to addressing these challenges, providing more scalability and flexibility.”
Catalysed by the pandemic, the aviation industry has been on an accelerated digitalisation journey which is reflected in a year-on-year growth in IT spend since 2020. Next year, is predicted to follow the trend, with 96 per cent of airlines and 93 per cent of airports expecting their IT spend to stay the same or increase in 2023 compared to 2022.
Here are some of the key findings from the report.
Airlines
The three main investments for airlines’ IT services are cyber security, mobile applications for passenger services, and IT service management enhancement.
The top four priorities for airlines investment in technologies are business intelligence software, data exchange technologies, artificial intelligence (AI), and radio frequency identification (RFID) tracking.
76 per cent of airlines forecast to implement self-boarding gates using biometric & ID documentation.
25 per cent of airlines currently offer the option to receive real-time information sent to their mobile about bags but 42 per cent confirm implementation by 2050.
Self-service solutions to help tackle irregular operations remained the top priority for this year at the airport.
87 per cent of airlines have an innovation strategy now or one that is currently being developed.
Airports
75 per cent of airports anticipate IT&T investment to increase in 2023.
Three of the top priorities for IT services are cybersecurity initiatives, self-service processes, and Business intelligence solutions.
The top two focuses for the future of passenger identify management are self check-in and self bag-drop.
Aviation Festival Asia has some of the APAC region’s leading aviation CIOs from Turkish Airlines to Virgin Australia, SriLankan Airlines to Bangalore International Airport. Get your ticket here to be a part of the discussion.
What to expect at Aviation Festival Asia with Yen-Pu Paul Chen
At the end of the month, industry executives, start ups, and established leaders in the field will congregate for Aviation Festival Asia.
Yen-Pu Paul Chen, MD, V.X Consulting will be joining the event’s loyalty track, drawing on his multidisciplinary background to bringing a nuanced and perceptive approach to the interviews and panels.
In this short interview, Paul offered an exclusive insight into what to expect from his sessions.
Paul will be moderating panels on:
Maintaining bespoke, relevant relationships with loyalty program members in line with their unique realities.
Update and upgrade – revamping aviation loyalty programs to reflect current and future passenger priorities.
As well as interviewing Melissa Vandersay, Lead – Strategic Partnerships – Retail, Lifestyle, Points Exchange and Sustainable Partnerships, Etihad Airways on ‘Key teachings from the pandemic regarding diversifying loyalty programs that airlines can bring into the future.’
Some of the panellists in these sessions include Siddhartha Butalia, CMO, AirAsia India, Shefali Higgins, Head of Member Engagement, Emirates Skywards, Katherine Benton, Director, Customer Platforms IT, Hawaiian Airlines, Melissa Vandersay, Lead – Strategic Partnerships – Retail, Lifestyle, Points Exchange and Sustainable Partnerships, Etihad Airways, and Wilson See, Marketing & Strategy Research, Japan Airlines.
During the conversation, Paul also shared his thoughts on what makes APAC such an exciting region for aviation, key trends the audience can expect to hear about at the event, and why Aviation Festival Asia is important for the industry ecosystem.
To see Paul’s sessions and other unmissable talks, interviews, and panels get your ticket here.
Breaking down the mindset barriers holding back the widespread deployment of Artificial Intelligence-driven solutions requires nurturing a high-performance team from the start. Clear communication and reassurance across IT and business teams, defining common KPIs and goals focused on agility, accuracy, and performance. Businesses need to make clear to all employees that, far from replacing the human workforce, AI is simply changing people’s jobs for the better through intelligent automation, helping teams reduce repetitive administrative tasks in favor of more strategic decision-making and enhancing their ability to make better decisions and drive business performance.
Similarly, senior business leaders must commit to ensuring the right alignment between business use cases and the latest AI techniques to unlock new levels of performance. Equally, they must understand the roles they have to play in setting a company culture in which their organization seizes new opportunities, experiments with new technologies, and is not afraid of taking risks.
AI has the power to transform airline operations, unlocking new levels of data insight that can enhance profitability and the customer experience while enabling airline industry analysts to turbocharge their effectiveness, giving commercial teams that harness it a major edge over the competition.
When it comes to realizing this potential, however, the travel industry is still on a journey.
To realize the full power of AI, early adopters across industries have already realized – and demonstrated – the significant business benefits the technology can deliver.
Businesses that have remained reliant on legacy technologies now find themselves desperately playing catch up, prompting a surge of investment into AI-based solutions. According to a September 2022 article by Simple Flying, 82% of airlines are now looking to invest in AI.
While it will take work, industry mindsets can be shifted toward digital-first practices for commercial decision making. Let’s explore the steps that will enable this to happen and the opportunities around pricing and revenue management this could offer the aviation sector.
AI barriers for business stakeholders
There are certain mindsets that exist across the travel landscape that may hold back the industry’s adoption of AI.
Fear of the unknown, or the dreaded “black box” idea, makes some hesitant to adopt technology they cannot fully understand. If the analyst or manager cannot see the calculations being run, how do they know they’re correct? A lack of trust in the science behind AI can cause hesitancy to adopt new technology.
Employees must also be reassured that AI technology is not a stepping stone to replacing their roles, while those with extensive experience with legacy systems can often be reluctant to embrace new and unfamiliar business technology solutions.
Businesses can also face challenges around the lack of usable data and support infrastructure, and accessing valuable knowledge and skills can also prove challenging.
How to realize potential
Breaking through these potential obstacles requires clear and consistent communication and buy-in across all levels of the organization. Analysts should be reassured that, rather than replacing their jobs, AI will enhance them by allowing them to automate time-consuming and repetitive tasks, freeing them up to focus on better decision making on key flights and routes. Analysts will be able to work with AI to act on information beyond the recorded data, such as upcoming schedule changes, new routes, or competitive opportunities. Technology still requires human insight to adopt and fine-tune strategies.
Senior leaders must commit to understanding how the new solutions can unlock greater optimization across the business and create a culture of experimentation and data-driven decision-making. Organizations must be willing to try AI on a small scale and gradually increase its adoption, instead of using a big-bang approach.
It’s also important for companies to redouble their efforts to gather clean data. Maximizing productivity and unlocking new insights relies heavily on having reliable, decision-influencing data readily available, and business leaders must foster this data-gathering capability in their organizations.
Aviation industry opportunities
These shifts can unlock huge opportunities for the aviation industry. The adoption of AI-driven solutions can prove critical to maximizing overall revenue, boosting commercial performance, and – perhaps most importantly of all – improving the customer experience.
The aviation sector has historically been held back by the limitations of legacy systems, which have merely enabled analysts to look for year-on-year patterns. The problem with this, especially in today’s volatile travel environment, is that there simply isn’t enough data on a specific flight at a given point in time to support accurate forecasting in a volatile environment.
AI-driven solutions overcome this problem thanks to technological advances like Deep Learning. These algorithms, trained by sifting through vast amounts of historical and contextual data – including bookings, searches, events, promotions, and competitor prices – enable forecasts which aid in truly informed decision-making. Commercial systems, powered by Deep Learning technology, allow airline teams to finally realize total revenue optimization – maximizing all sources of revenue to the airline.
FLYR is dedicated to generating win-win situations in which airlines become more profitable across fares, cargo, ancillaries, offer and order management, and retailing, while customers enjoy a superior experience. Moreover, with AI-powered commercial decision-making capabilities in The Revenue Operating System®, airlines can provide more personalization through every stage of the customer journey. Equipped with high accuracy and dynamic load and revenue forecasts, airlines are better able to direct marketing spend and energy toward higher-yielding results and adapt to the ever-increasing velocity of change to more quickly accommodate customers’ needs.
To learn more about how FLYR Labs is bringing AI to the travel industry, check us out.
Article by Christian Merkwirth, Technical Product Owner, Lead AI Scientist, FLYR
Six start-ups to look out for at Aviation Festival Asia: Data and artificial intelligence (AI)
Aviation Festival Asia gathers together industry giants, start-ups, and everyone in between to drive innovation in the aviation industry. The event is an opportunity for start-ups to get noticed and for influential industry players to forge business partnerships in the Asia Region.
Data and artificial intelligence (AI) are two of the most influential driving factors spurring innovation and advancement in the aviation industry. Both data and AI have begun to transform the landscape of the industry working separately and synergistically to progress multiple facets of aviation. Here are six start-ups working with data and/or AI to look out for at Aviation Festival Asia.
AEROSENS
Throughout the history of business, people use data to make more informed decisions. Digitalization is key to the future success of any industry. Our goal at AEROSENS is to develop technology solutions making the aviation industry more transparent, smarter, and cost efficient. Today, we provide solutions that transform the way information about parts, products, equipment and even people is gathered and analyzed.
Airevo
Airevo has been set up to transform airlines Commercial, Sales and Distribution environments through intelligent use of AI.
We are building a range of modular AI-driven solutions that will directly impact on profitability. The first is focused on reducing distribution costs, addressing unproductive bookings and increasing seat availability. The second solution will dynamically create personalized offers based on customer personas. This can be integrated into modern Direct and Indirect selling systems to increase upsell.
ALEIOS
ALEIOS help startups disrupt and large organisations to remain competitive using the best of Cloud-Native, Serverless. Building highly scalable systems we connect people, liberate data and create innovation through technology.
BookingData
BookingData enables hotels to make closed offers to airline travellers (currently confirmed: Lufthansa group, Eurowings and SunExpress). Hotels are receiving all the bookings made by the airlines and can select the profiles it wants to make offers to. Offers are then carried by the airline to the travellers.
NABLA Mobility
NABLA Mobility is a startup company that designs, develops, and provides software to optimize airline flight operations. We improve operational resilience and decarbonization by introducing the latest technologies such as AI/ML to support better operational decision-making for aviation.
“Weave” is our software product that supports pilots to make optimal in-flight decision making, based on our own developed unique set of AI/ML technologies, “Untangle”
RecoSense
RecoSense offers an AI-powered platform for document analysis and data centralization. Our primary expertise and focus are on transforming raw unstructured data into structured data with meta context definition. The platform powers Process Automations and Compliance Management with MROs in the Aviation Industry. We work as an Engineering partner with our customers to build enterprise-specific solutions.
Aerobot is an enabler system as a digital assistant for the functional and business teams for process efficiency and automation rather than replacement of human resources.
These six start ups will be at Aviation Festival Asia next month. Data and AI will be discussed across the majority of the tracks at the event with a range of top industry leaders discussing their experience, lessons, and plans for the future. Get your ticket here.
Watch ‘Data analytics in aviation. An interview with Dirk Jungnickel, SVP Enterprise Data & Analytics at Emirates Group’ here.
Data analytics in aviation. An interview with Dirk Jungnickel, SVP Enterprise Data & Analytics at Emirates Group
Like with many industries, data analytics is having a transformational impact on aviation. It has the potential to improve multiple facets of the industry, including but not limited to customer experience, revenue, operation efficiency, safety, and sustainability. Through encouraging optimisation at all stages and developing the way businesses interact with passengers, the industry is advancing. With such considerable potential, a strong understanding of how to harness and leverage this data is invaluable to companies.
In this 20-minute interview with the SVP Enterprise Data & Analytics at Emirates Group, Dirk Jungnickel provided an expert overview of the vast topic that is data analytics in aviation.
The discussion touched on the role data plays in the industry and the variety of ways it can be used to optimise systems with tangible results. Supplementing discussion of the potential data holds for the industry, Dirk draws also attention to some of its challenges, including difficulties getting a clear view of data across the business.
Furthermore, Dirk explores into depth how data analytics can be used to improve the customer experience. Offering the example of monitoring passenger satisfaction, Dirk describes how data is collected and analysed in a manner that allows for a dynamic, effective response.
Given the possibilities that data can offer the aviation industry, it is useful to understand the landscape and establish the value that it can hold for your business.
Questions:
How important is unlocking the potential of data to the overall success of the aviation industry?
How do you get a clear view of data across the business?
What can be gained by using AI to harness value from data?
Could you explain how data analytics can be used to enhance operations and improve the customer experience overall?
Can you tell us a little about the recent advancements in AI/ML for Emirates Group?
Are there any exciting developments in the data analytics field that we should be keeping an eye out for?
Fly less or innovate more? Air France-KLM CEO criticises Schiphol flight limits
Last week, the head of Air France-KLM critiqued the Dutch government’s decision to tackle environmental challenges by cutting airline slots at Schiphol Airport.
The government said last June that flights from Schiphol would be limited to 440,000 a year, down from 500,000 in a bid to reduce noise and air pollution, as well as deal with staff shortages.
Tim Hepher and Joanna Plucinska from Reuters reported:
At a company even in Paris, Chief Executive Ben Smith said, the Franco-Dutch airline group had invested heavily in newer planes based on foreseeable capacity at KLM’s hub only to see the goal posts move abruptly.
Ben Smith told reporters “You know we have a whole network, a whole fleet plan which is 25 years based on these slots […] That’s quite a big hit [they] have given us there,” adding that government efforts to curb emissions would be better directed at helping to scale up production of sustainable aviation fuel (SAF).
The CEO’s comments outline an interesting debate surrounding aviation and climate change. Should efforts, especially at a governmental level, be directed at reducing the overall number of flights occurring or assisting innovative solutions designed to curb emissions?
Aviation is famously a “hard-to-decarbonise” sector and sits in the public spotlight. Consequently, there have been many calls by activists for people to dramatically reduce the number of flights they take or stop altogether. There are even discussions surrounding frequent flyer levies in an attempt to reduce the total number of flights.
SITA and Zamna partner to “fundamentally change data management within the aviation industry”
On 25 January, a press release confirmed that multinational information tech company SITA and travel identity company Zamna Technologies finalised their partnership deal.
The pair will be working towards creating an entirely digital travel experience.
Irra Ariella Khi, CEO, Zamna Technologies, said:
“Together we will leverage Zamna’s digitization of travel documents and processes through Identity Rails, to make travel significantly more efficient, and deliver secure travel identity for all — through airports and across borders.”
Together, the companies are “fundamentally changing data management within the aviation industry.” The collaboration between the two will simultaneously increase security for SITA’s clients through safe, private, and decentralised data management whilst improving the passenger experience.
Zamna uses a decentralised blockchain based model to transform how passenger data, such as passport, visa, and health information, is verified and handled. The solution brings security, ease, and efficiency benefits for travellers airlines, airports, and governments.
Their solution will also address the current frustrations of having to repeatedly present travel documents at each touchpoint. This will streamline the process for passengers, airlines, and airports, reducing processing times and facilitating a more seamless journey. The press release also highlighted the potential operational savings from the secure sharing of passenger data.
David Lavorel, CEO, SITA, said:
“The partnership with Zamna Technologies powers the next step in the journey to SITA’s vision of enabling a truly connected and digital travel experience along with all the benefits it will deliver: efficiency, improved passenger experience, and increased security.”
What can airlines learn from Southwest’s nightmare before Christmas? And how can airlines take advantage of the new generation of SaaS technology to elevate customer loyalty?
The Christmas holiday break is a testing time for all airlines, and there’s an inevitability to news of festive delays. In the last two storm-filled weeks of the year, over 15,000 Southwest flights were cancelled. Some 1.5 million customers had been affected. Yes, this is a more extreme example of recent disruption event, but are other airlines doing anything better when it comes to technology investments?
The unfortunate situation with things going spectacularly wrong for Southwest Airlines in the final days of 2022 is more common than we would like to believe. 80% of all airlines globally rely on manual or semi-manual procedures when it comes to disruption or crew management supported by outdated software long overdue. Has anyone stopped to think what a tremendous effect this has on customer loyalty?
Now the Christmas decorations are down and we’re back at work, what should airlines – big and small – take from Southwest’s experience?
When the storms hit, systems crumbled
Southwest have always prided themselves on their staff, and rightly so. It will come as no surprise that, when the storm hit and flights began to be grounded, Southwest’s struggles to cope was not the fault of its people on the ground.
Indeed it’s been reported that hundreds of Southwest’s own pilots and crew members slept in airports next to passengers. Some stuck with nowhere to go. Others in a heroic effort to keep the wheels turning. As Captain Casey Murray, the president of the Southwest Airlines Pilots Association, said to CNN, “It’s phones, it’s computers, it’s processing power, it’s the programs used to connect us to airplanes – that’s where the problem lies, and it’s systemic throughout the whole airline.”
No, while short-staffing undoubtedly played some part in Southwest’s ability to recover, Southwest’s pre- Christmas failure was caused by an IT system unable to adequately respond to the level and severity of disruption that hit the airline over those first few stormy days.
The airline is now on the verge of a major technology evolution, serving as a prime example to others to lead the modernization and overhaul of operations tech stack.
Growing complexities, growing expectations: a perfect digital storm for airlines
It is a cautionary tale for airline CIOs across the US and beyond. Moreover, while the media has no doubt been hard on Southwest, the outside world’s patience with airlines is only getting shorter.
The complexities involved with operating an airline are constantly growing. But customer expectations of what they should expect from their air-travel experience are growing faster.
In particular, post-Covid, customers are increasingly expecting a far more holistic digital experience, covering all touch points at every stage in their journey, all through their own devices.
If their journey has been disrupted, they expect to be informed and helped instantly and seamlessly. And if this doesn’t happen? Airlines live in a world where one bad experience can be beamed to millions across the airwaves through the power of social media. It’s a tough gig.
If the airline can offer an element of surprise about the quality of extra-care, offer customers a choice of an overnight stay and implement personalization, customer loyalty will only grow higher.
SaaS: the secret weapon for staying up to speed
One piece of good news for airlines, though, is that the digital technology available to them is better, and more implementable, than ever before. Crucially, airlines no longer need to develop and support their own customized software (and should be wary of IT partners insisting they do).
Instead, airlines now have the option to choose reliable SaaS products available off the shelf in the cloud.
Implementation in weeks not months
One effect of this new wave of SaaS tech for airlines is that digital upgrades are no longer projects to be feared. Implementation times have been cut from months to often between 4 to 8 weeks depending on the scale of the upgrade. While this new generation of SaaS technology is also able to offer end-to-end services, powered by automation, that overcome the gaps that inevitably emerge when legacy structures are patched up and added to.
Modern SaaS technology for airlines can automate +80% of the operations required in crew planning and allocation even during times of disruptions and offer an easy communication channel to the crew through connected super-apps. Similarly, present-day technology can help eliminate airport chaos and long queues for stranded passengers, offering self-service solutions directly on their devices. It can deliver personalized options for a hotel stay near the airport, transfer service, refreshment vouchers, and information on the re-booked flight – all in one place for passengers while delivering the highest level of data and cost transparency back to the airline.
The right time to upgrade your technology is… all the time
All this is too late to save Christmas. But new storms will come. Disruptions will happen. The summer holiday season is soon upon us with more passenger volumes than ever before. Digitalization is the single most significant investment opportunity in the immediate future of airline travel.
It’s also a journey not a destination, with Digital tech a constant upgrade in progress – something SaaS technology is making possible. The sooner airline CIOs & CXOs can work together to implement this new wave of digital technology, the safer they are from being the next bad-weather casualty.
To learn more about how digitalization is changing the airline industry for good, as well as more about what airlines need to know, download our free white paper on MAXIMIZING RECOVERY: THE FUTURE OF THE AIRLINE INDUSTRY IS DIGITAL.
Article by Luca De Angelis, CEO, HRS Crew & Passenger Solutions. As the CEO of HRS Crew & Passenger Solutions, Luca De Angelis works today with multiple airlines to enhance their service and crew management operations.
Air France instigates “a more direct relationship with customers” through WhatsApp
Yesterday, Air France announced it is opening a new channel for communication with customers, WhatsApp.
The service is free and available seven days a week, in twenty-two countries, and in four languages (French, English, Italian, Brazilian/Portuguese).
Already offering customer communication via Facebook Messenger (1.3 billion users), the airline’s expansion to include WhatsApp demonstrates an awareness of the communications application’s prevalence, boasting 2 billion daily users.
Air France hopes this will encourage “a more direct relationship with its customers.”
In a press release, the airline explained customers can access support via WhatsApp with:
Instant answers to common questions via the chatbot Louis and, for more specific answers, contact with an Air France representative.
An option to opt in to notifications for each key moment of the journey. This includes boarding pass issuing, flight information (change in schedule or boarding gate; last call before the plane door closes), and baggage delivery belt location on arrival.
The shift will also promote ancillary sales through personalised promotions allowing customers to upgrade their travel experience with lounge access or seat selection.
Stéphanie Charlaix-Meyer, Air France-KLM Customer Service Director confirmed the new channel has been “an immediate success.”
Nicolas Farin, Head of Client Sales EMEA, Business Messaging at Meta said:
“We are proud to connect Air France with both new and existing customers through one of their most used communication channels. We hope this partnership will continue to improve customer journeys on WhatsApp, offering better, faster and more personalized experiences at their fingertips.”
You can access the Air France WhatsApp channel here.
Seven start-ups to look out for at Aviation Festival Asia: Ancillaries
Aviation Festival Asia gathers together industry giants, start-ups, and everyone in between to drive innovation in the aviation industry. The event is an opportunity for start-ups to get noticed and for influential industry players to forge business partnerships in the Asia Region.
Ancillary revenue, “revenue beyond the sale of tickets that is generated by direct sales to passengers, or indirectly as a part of the travel experience,” played a key role for airlines during the pandemic. As we return to travel, these continue to provide an important channel of revenue whilst elevating the passenger experience. Ranging from facilitating easy access to all available ancillaries to harbouring potential as the ultimate ancillary product, these seven start-ups are ones to keep an eye out for at Aviation Festival Asia.
1. Aeronology
Aeronology has created the world’s best full service ‘Point of Sale’ travel booking platform. Our booking model is created for Travel Advisors, Universities, Government and Corporate Organisations.
Sabre, Travelport, Amadeus, TravelSky, IATA NDC – LCC Certified and full webservices to every available airline product in the world.
All available Ancillaries, and Special Service Requests (SSR) bookable online. Book, Change, Reshop, Reissue, Cancel and Refund all on one screen, every user trained within hours.
2. Bacarai
Bacarai operates the world’s first online marketplace for group airfare, offering group customers an entirely digital experience, from shopping, to securing seats with a deposit, and managing the entire life cycle of the group trip contract. Airlines can digitalize their offline group sales programs by integrating into the Bacarai Marketplace.
3. Cielo.Ai
Our technology helps airlines monetize their customer service experience based on access, quality, and speed. The process is seamless for end-users, turning pain points into profit-centres and raising NPS. Cielo.Ai provides ancillary uplift at zero cost and increases profitability per passenger between 5-12% (2021). In addition, our AI makes airlines more competitive by accelerating or unbundling CX, providing further opportunities as we become the entry point for data-driven monetization across billions of interactions.
4. eSIM GO
Roaming remains a big problem for many, including your customers, as mobile operators profits continue to rise.
eSIM technology has made solving this problem easy.
eSIM Go provides API-driven access to cost effective mobile services in more than 100 countries worldwide.
We partner with travel service providers to build and enable eSIM web and mobile applications so they can offer consumers and business travellers commercially viable mobile data services, saving them time and money when they roam.
5. ModiFly
Berlin-based ModiFly provides a seamless ancillary retailing platform that enables post-booking ancillary sales for agents and airlines with a focus on the most demanded flight-related ancillaries. The white label solution is designed in the branding of the agent and provides a simple, flexible and quick way for both parties to improve the customer experience and generate additional revenues with virtually zero investments.
6. Simtex
In a few simple steps, you can select and purchase the optimal data package for you without a physical SIM card. We provide a strong and stable internet connection in one easy, secure and accessible operation – just scan a QR code and connect.
7. SmartRyde
SmartRyde is a leading fast-growing airport transfer platform with headquarters in Tokyo. With more than 1000 suppliers, in 153+ countries.
The company service includes the following features:
Safety & Comfort. All of Smart Ryde’s drivers are licensed and insured, passengers can relax and enjoy the ride.
Efficient movement. The driver makes the transfer smooth by meeting every passenger individually with a name plate.
Pre-booking. As all fees are included in the predetermined price, there are no on-site charges.
Customer Support. Our 24×7 telephone support is available to all our customers.
Additionally, local taxi and car hire companies affiliated with SmartRyde are implementing measures to prevent new Coronavirus infections. It gives SmartRyde the opportunity to continue offering safe, secure, and comfortable transportation services. For more information see here.
Watch a 20-minute in-depth discussion on ancillaries and digitisation with with Apple Ignacio, Director of Ancillaries, Cebu Pacific Air here.
I asked ChatGPT what it means for the future of the aviation industry
Open AI has trained a state-of-the-art language processing AI model called ChatGPT. Specialising in efficiency, the possibilities that this technology opens up for businesses cannot be overstated. It speaks in a conversational way and has been described by a leading economist as “the calculator for writing.” With the chatbot holding the potential to revolutionise operations across almost every sector, the topic has been heavily discussed while people discern what it means for their industry.
But what does this technology mean for aviation? I asked ChatGPT questions around this thought, and the answers speak for themselves.
Do you think ChatGPT will transform operations in the aviation industry?
“Terminal in a Garden,” the airport terminal built on the key pillars of Technology and Sustainability. An interview with Hari Marar, MD & CEO, Bangalore International Airport Limited (BIAL)
Prior to Aviation Festival Asia, Hari Marar, MD & CEO, Bangalore International Airport Limited (BIAL) shared his thoughts on the design and architecture of Terminal 2 (T2), the newly built terminal of the BLR Airport. Inspired by the city of Bengaluru’s reputation as “the garden city,” T2 which is popularly known as the ‘Terminal in a Garden” will cater to an additional 25 million passengers annually. With this additional capacity, the BLR Airport will play a crucial role in boosting the economic growth of the region and the country, by creating more opportunities for businesses in and around the airport.
T2 officially opened on Sunday morning with Star Air performing the inaugural flight.
Credit: Str/Xinhua. Terminal 2 of Kempegowda International Airport in Bangalore, India.
Hari Marar shared his views on how technology is woven into every aspect of T2 to offer a simplified and seamless passenger experience. He poured light on the technological advancements integrated into the airport operations, and the launch of BLR Metaport which offers an immersive, 3D virtual experience of Terminal 2. With BIAL entering into the new world of Metaverse, it becomes easier to connect with a new generation of global audience. From checking into flights to navigating terminals, the BLR Metaport will open up new ways for customers to interact with the airport.
With several sustainability initiatives incorporated into the design aspects of the terminal, T2 is recognised as the largest terminal in the world to be pre-certified with a Platinum LEED rating by the US Green Building Council prior to commencing operations. Boasting fire retardant and long-lasting engineered bamboo, solar panels, multipurpose lagoons, sky lighting, and enhanced indoor air quality strategies implemented, Terminal 2 is designed and built to nurture a sustainable future.
Watch this engaging 25-minute interview with Hari Marar to learn more about how T2 uses technology and innovation to enhance its operations.
Questions:
Can you tell me a little bit about the four key pillars that terminal two is designed and built on, and how these elevate the customer experience?
Could you tell me more about the design of T2, how does this strike the balance between culture and technology all while enhancing customer experience?
How do you find technology making processes more efficient in the airport?
Is technology well received in the region? Do you try to establish a balance between technology and automation on one hand and human interaction on the other?
Could you tell me about the sustainability side of the terminal, how have you ensured a low carbon footprint and how does the design of the terminal take sustainability into account?
What are you most looking forward to about Aviation Festival Asia?
Hari Marar will be giving a keynote interview at Aviation Festival Asia 2023 on how the design of T2 reflects the world’s biggest changes as a result of the pandemic.
Seven start-ups to look out for at Aviation Festival Asia: Customer experience
Aviation Festival Asia gathers together industry giants, start-ups, and everyone in between to drive innovation in the aviation industry. The event is an opportunity for start-ups to get noticed and for influential industry players to forge business partnerships in the Asia Region.
In aviation, the customer’s journey begins far before arriving at the airport. From simplifying the process of inquiry resolution, to ensuring passenger comfort on the plane, these seven start-ups are helping to improve the overall experience along an extended customer journey.
1. Chaise Longue Economy Seat
The Chaise Longue Economy Seat aims to implement a new age of travel presented by COVID-19. With greater comfort, sustainable seats, and more customer satisfaction, the Chaise Longue is the economy class seat of the future. The uniqueness of our seat design is that the vertical volume inside the cabin is used to create more space and accommodate passengers more efficiently. Providing passengers with bigger recline angles, more legroom and more overall space are just some of the benefits of the Chaise Longue Economy Seat design. Leading publications such as CNN, Forbes and Simpleflying have also covered our new innovation.
2. CX Unraveled
CX Unraveled is a hands on Customer Experience agency based in the Netherlands, founded by two former KLM Customer Experience Directors. We want to help our customers unravel Customer Experience (CX) in theory, tools and their personal context so that they can learn how to create truly better experiences in a fun way. To achieve our purpose we provide masterclasses on a variety of customer & employee experience topics and support companies and organizations in achieving awesome customer experiences.
3. Fairlyne
Fairlyne is an early-stage start-up founded in 2021 by three former executives from Accor, Transavia & SNCF. Fairlyne’s mission is to improve customer experience and revenue on reservations websites in the travel & tourism sector. Fairlyne’s Transportation product can optimize revenue on fully booked trips by: Creating waiting lists for every fully booked trip Allowing non-flex customers to notify their no-show in advance and receive a voucher Generating additional revenue by selling last-minute bookings at the highest price
4. FareUpThere
The FareUpThere platform helps airlines improve customer experience, by more accurately identifying rifts in the customer journey.
With the FareUpThere API and SDK, users opt-in to location tracking, and answer short one-question surveys sent out via push notifications throughout their trip. We then gamify the experience, by allowing the user to earn achievements and rewards for each answer.
Once our SDK is dropped into an airline’s existing app, it replaces post-flight email surveys and delivers customer feedback at much higher rates.
5. Fluxir
Fluxir is an innovative startup that aims to revolutionize the travel documentation process by leveraging artificial intelligence to streamline the process of obtaining necessary documents for any destination. By building unique traveler profiles, Fluxir simplifies the process and makes it more convenient for travelers.
6. LSEAT
LSEAT Engineering designs Economy seat retrofit kits to improve passenger experience on long haul single aisle and wide body aircraft. Its mission is to coordinate component selections, production monitoring of sub-contractors, organizing certification or STC creation work among aeronautical compliant partners. LSEAT organizes the sales and marketing of its products towards airlines and M.R.O’s. Based in Brussels, it builds sales and assistance of its international network. LSEAT has a team of engineers, ergonomic specialists, skilled marketing and sales people collaborating with world major airlines and aircraft manufacturers
7. NLX
NLX® – a SaaS-based Conversational AI company – helps brands transform their customer interactions into automated, personalized self-service experiences. Customer-contact organizations use NLX’s comprehensive, low-code approach to quickly design, build, and manage all their customer conversations in one place, and benefit from NLX’s cost-effective pay-as-you-go pricing model with no hidden fees or service charges. When implemented, NLX empowers a brand’s customers to resolve their own inquiries at their own pace — with no wait time or frustration.
Aviation Festival Asia takes place 28 February – 1 March at the Suntec Singapore. The event is the region’s most important aviation technology conference and exhibition.
On 12 January, Datalex released their latest research into travellers’ digital retail expectations and the digital retailing priorities of airline executives. One key finding was a digitalisation’ gap, “highlighting an expectation disparity between airlines and their customers.”
Datalex is a market leader in digital commerce for travel retail, helping airlines to drive revenue and profit.
The research engaged with over 150 airline executives and approximately 10,000 travellers from 10 countries worldwide including Ireland, the United States (US), United Kingdom (UK), Germany, Canada, Australia, Singapore, Brazil, Argentina, and Chile. Responses include C-Level and VP Level Airline Executives from a range of full-service, low-cost carriers (LCCs), and start up airlines.
The insights into traveller expectations found by Datalex were particularly interesting.
Engaging with the respondents, Datalex tried to establish these questions and more:
What frustrates travellers with the digital booking experience?
What do they want and expect from their digital travel experience in an era that is more digitally driven than ever before?
What ancillaries are they willing to pay more for and when?
Highlights from the research into travellers’ expectations are:
Only 11 per cent of travellers believe airlines are ahead of other e-commerce providers.
70 per cent of travellers are more likely to purchase is several products are bundled together.
75 per cent of travellers are most likely to prioritise the use of loyalty points as a payment method.
53 per cent of travellers are likely to use Buy Now Pay Later (or similar) payment methods.
48 per cent are likely to use Apple Pay.
34 per cent would like to use cryptocurrency as a method of payment for travel. Respondents in the US were most positively in favour of cryptocurrency payment options. See here for more content relating to this.
42 per cent of travellers were willing to pay more for a flight with an airline with better sustainability credentials.
As airlines develop their digital retail offering, it is imperative that the customer remains at the heart of their vision for the future. Therefore, research into the expectations of customers in this space is vital.
At Aviation Festival Asia, the future of retail technology will be explored in depth by a range of industry experts including the Head of E-Commerce & Ancillary at Oman Air.
Vueling to become the first LCC in Europe to accept NFTs as payment alternative
Last week, Spanish low-cost airline Vueling and cryptocurrency buying and selling platform Criptan announced their partnership. The pair are working together to enable Vueling to accept NFTs (non-fungible tokens) as payment.
From the second half of 2023, Vueling will offer passengers the option to purchase flights using NFTs making it “the first low-cost airline in Europe to accept cryptocurrencies as a payment alternative.”
Elaborating on the partnership, Jesús Monzó, Vueling’s distribution and alliances manager said:
“This agreement places us at the forefront of new technologies and innovation, further strengthening our commitment to our customers and offering the best and most advanced tools and solutions on our website.”
Jorge Soriano, CEO of Criptan emphasised Vueling’s commitment to forward thinking:
“Vueling is proving to be a leader in all that relates to innovation. This is a clear move that demonstrates the potential behind the crypto and Web3 ecosystem and that goes far beyond speculation […] We are convinced that we can improve the user experience, not only through payments in crypto but by bringing the advantages of this ecosystem in the most useful and simple way possible.”
Vueling is not the first to pioneer the overlap between cryptocurrencies and the field of aviation. In 2014, Air Baltic became the first airline in the world to accept bitcoin, closely followed by LOT Polish Airlines in 2015. Last year, the world’s first collectible NFTicket was sold for over $1 million for an Air Europa business class ticket from Madrid to Miami.
At Aviation Festival Asia a CIO Panel will discuss how airlines in Asia are prioritising investments in a conversation that will cover emerging tech including NFTs and the Metaverse.
Travel chaos in the US illustrates the importance of up-to-date technology
Within weeks of one another, the United States’ aviation industry (US) experienced two severe disruptions causing travel chaos for passengers. Each of these had outdated technology as a crucial factor in the operational breakdown.
Between 22 and 28 December, there were over 16,000 cancelled flights, 90 per-cent of which were from Southwest Airlines. This was reported in newspaper headlines: “Southwest’s outdated technology is to blame for travel chaos” and “Southwest meltdown shows airlines need tighter software integration.”
On Wednesday this week, thousands of flights across the US were grounded again, disrupting approximately 10,000 flights. This time, headlines read: “All flights in the USA grounded due to computer glitch.”
Source: SkyNews. A map showing flights across the US at the time of the outage. Pic: Flightradar24
Upon examination, the main problem causing the delays at Southwest was its outdated optimisation technology, SkySolver. SkySolver assigns crew to flights. The system fell short, and its failure was heightened by the absence of front-end technology for inputting flight crew locations. Combined with a storm and staff shortages, the mass cancellations ensued. Southwest Airlines is one of the largest carriers in the US and the operational meltdown is predicted to cost the airline up to $825 million.
This week’s disruptions were the product of a corrupted file causing a glitch on the Federal Aviation Administration’s (FAA) computer system. The corrupted file affected both the primary and backup systems causing an outage to the Notice to Air Missions (NOTAM) system that provides safety information to flight crews.
Airline Weekly reported that:
“The FAA’s air traffic control technology is known to be outdated. Agency administrators and legislators on Capitol Hill have repeatedly pushed for funding of the agency’s proposed NextGen upgrades to air traffic control but, as yet, most of the program remains pending until further funding from Congress.”
In both incidents, failing technology caused severe disruptions. These cases highlight the importance of having updated, well-maintained technology, and the consequences of not doing so.
It must be noted, these two incidents of mass cancellations and disruptions do not stand in isolation. Skift has reported that last year, Spirit Airlines cancelled 2,800 flights over 10 days due to technology problems and staff shorages. American Airlines and Southwest also cancelled 2,000 flights each within a short timeframe last year. Moreover, Delta cancelled over 3,500 flights over five days during severe weather conditions in April 2017.
The need to having updated, efficient, and reliable technology has been put in the spotlight in recent weeks. Significantly, the financial and reputational consequences of failing to do so have also been reiterated.
Changi Airport ensures automated immigration clearance system is wheelchair accessible
Recognising the challenges that travelling with a disability can pose, Changi Airport offers a new measure to assist passengers who use wheelchairs.
The airport introduced automated lanes called the Special Assistance Lane (SAL) in December 2022. These allow passengers in wheelchairs to benefit from the convenience of automated immigration clearance enabled by biometric technology.
Changi Airport Group, Home Team Science and Technology Agency (HTX), and the Immigration and Checkpoints Authority (ICA) worked together to create the new automated lanes.
In the creation stages, people of reduced mobility were involved in physical sessions. This helped to identify any challenges and ensure the lanes were as user friendly as possible. Factors including the width of the lane as well as the placement and angles of the passport and biometric scanners were taken into account. Looking forward, the lanes will continue to be refined based on feedback received by users.
Currently, the new lanes are available at Changi Airport Terminal 1 departure hall and the Terminal 2 arrival and departure halls. The SALs will be progressively installed at all Changi Airport terminals and the passenger halls at land and sea checkpoints. Right now, the option is only available to Singapore residents (Singapore citizens, permanent residents, and long-term pass holders), but will be extended to eligible foreign visitors from March 2023.
Making automated procedures accessible to people with physical disabilities enables the benefits of airport technology to be felt more equally across passengers. It also allows for the redistribution of staff to optimise the running of the airport.
Moreover, the SALs allow families of up to four people to go through self-immigration clearance together. This makes Singapore the first country in the world to introduce an automated lane for multiple travellers to perform self-immigration clearance as a group.
Mr Abhimanyau Pal, Chief Executive, SPD, an organisation that serves people with disabilities, said:
“The addition of wheelchair-friendly automated immigration lanes will help some wheelchair users to be more independent, as well as provide some caregivers with more convenience when assisting their loved ones who use mobility aids.”
The Straits Times reported that Ms Fathima Zohra, 25, a wheelchair user who is paralysed from the neck down, welcomes the introduction of the automated lanes. Ms Zohra said:
“With these automated lanes, I feel my condition is understood and respected. I feel more assured I can travel smoothly.”
Insights from World Aviation Festival 2022 with Henry Harteveldt
As we settle into 2023, it is important to remember the lessons learnt in the previous year in order to grow effectively.
On the final day of the World Aviation Festival 2022, Henry Harteveldt took the time to reflect on the conference. Henry is one of the world’s best-known travel industry analysts and President of Atmosphere Research Group, a company providing market research and analysis to the global travel industry.
This conversation explores insights from the event in detail, elaborating on them with expert judgement. Three of Henry’s key takeaways from the event are detailed here.
One was the industry’s recognition of the need to collaborate. As Henry described, there was a general sense that the industry is at “the beginning of a new age where airlines are realising they can’t and don’t have to do everything on their own.”
A second observation was the strength of the resolve demonstrated at the event. Despite wide acknowledgement of the recent challenges the industry has confronted and continues to face, the overall spirit was one of determination and defiance.
The third was a discussion of how consumer mentally has evolved, at least in part, catalysed by the pandemic. Importantly, Henry highlights what this means for the industry in terms of meeting customer expectations and digitising the industry.
Watch the below interview to hear Henry’s answers to the following questions:
What have been some of the prevailing messages from the conference?
Has there been anything that has particularly surprised you or caught your attention?
Sustainability and technology have been a couple of the predominant themes of late, can you think of any other themes that we might see join these two in the next year?
Alaska Airlines improves onboard efficiency through real-time data sync
Today, 10 January Ditto announced its Intelligent Edge Platform is powering a new task management and peer-to-peer connectivity enterprise app for Alaska Airlines flight attendants.
Alaska Airlines is the first US airline to adopt Ditto. Providing software infrastructure enabling apps to synchronize data in real-time without internet connectivity, Ditto facilitates the efficient performance of internal processes. The infrastructure will power the airline’s crew-to-crew collaboration app, benefitting them with real-time, peer-to-peer communication.
Adam Fish, Ditto Co-Founder and CEO said:
“Ditto is excited about the opportunity to help Alaska Airlines digitize its crew members. Our Intelligent Edge Platform enables Alaska Airlines’ enterprise app to truly work at the edge which is where crew do their jobs […] Without the digitization of key processes, airlines miss out on crucial data and analytics as well as communications capabilities that are important for greater operational efficiencies and more highly optimized customer experiences.”
Access to real-time data and passenger preferences enhances the service that crew can provide passengers.
Alaska Airlines VP of Information Technology, Vikram Baskaran said:
“Our approach to developing frontline tools prioritizes close partnership with our Flight Attendants during each step of development. Ditto has been a great partner in ensuring our tools are seamless for our Flight Attendants. With their help, we have been able to support our workgroup by providing visibility of one another’s inflight mobile device to see when an order has been delivered in real-time.”
