At the start of the month, Shannon Airport launched a new app designed to streamline travel to the United States.
The Mobile Passport Control app (MPC) enables passengers to complete part of the pre-clearance process on the new app and is anticipated to reduce inspection time at the US pre-clearance facility. By allowing passengers to digitally submit the necessary documentation, photo, and customers declaration electronically, passengers can save time and benefit from an efficient process.
Niall Kearns, Airport Director said:
“At Shannon Airport, our approach is centred around ‘making it easy’ for passengers, so we are delighted with the latest addition of Mobile Passport Control for US-bound passengers. The MPC app, in addition to our existing time-saving US pre-clearance facilities, mean passengers can now avail of an even shorter pre-clearance process and will have more time to relax and enjoy their airport experience. When they touch down on US soil, they also have the added benefit of landing as domestic passengers having completed the entire pre-clearance process prior to departure from Shannon.”
As the first airport in the world outside of the Americas to have full United States Preclearance services back in 2009, and still now only one of two airports in Europe with these facilities, passengers have long been using the airport as a base to make the transatlantic flight. Elevating this service with the new MPC app, Shannon Airport’s is set to streamline this process further still.
SITA’s 2023 Passenger IT Insights have recently been released, analysing airlines’ estimated $34.5b spend on IT in 2023. The report provides critical insight into the strategies shaping the future of air travel, shedding light on the industry’s investment priorities as they evolve. This survey conveys the views and insights of carriers representative of 29 per cent of global traffic, accounting for the opinions of senior IT executives in the top 292 passenger carriers.
This article focuses exclusively on the insights regarding airlines, detailing some of the interesting investments, expectations, and challenges highlighted within the report. For more detail, see the full report: SITA’s 2023 Passenger IT Insights.
Investment trends
Business intelligence (BI) and artificial intelligence (AI) are the top technology priorities for airlines, with BI noted as the biggest area of technology investment for the coming three years.
Investment in AI is more broadly predicted to continue increasing over time.
Cyber security and cloud services retain their status as key investment priorities of IT services with 97 per cent and 95 per cent respectively having major programs/R&D in place.
Investment in real-time wait monitoring systems has nearly doubled since 2022.
Renewing fleets is the leading environmental sustainability initiative in the industry.
Sustainable Aviation Fuel (SAF) is set to be the subject of significant investment over the next three years.
Expectations
Mixed reality is set for growth with 53 per cent of airlines running trials or pilots versus only 6 per cent currently investing in major programmes.
70 per cent of airlines are expecting to have biometric ID management in place by 2026.
Over half of airlines plan to have a single token for passenger identification across all touchpoints by 2026.
Accessibility technology is projected to become increasingly important with 41 per cent ensuring their web content follows accessibility guidelines but an additional 40 per cent planning to do this in the next three years.
2/3 airlines have plans for integrated systems to predict potential issues, automated predictive alerts prior to flight disruption, and simulation capability for optimal reaction.
Half of airlines plan to start using the SAF book and claim system by 2026, bring adoption up to 78 per cent.
Almost all airlines are planning to adopt data collection and sharing across most areas by 2026.
By 2026, over 90 per cent of airlines plan to have IT in place to boost the efficiency of flight operations and aircraft turnaround.
Challenges:
Transforming business processes and culture.
Retaining and recruiting IT staff and workforce management.
Data maturity and the use of data to improve operational efficiency.
The integration of Large Language Models (LLM) and cyber threats.
SITA’s 2023 Passenger IT insights offers a useful snapshot of the industry’s trajectory, pointing towards areas of growth and the notable challenges that are influencing the future of air travel.
In the latest step along an “innovative path,” Trip.com have showcased a cutting-edge approach to travel with their Trip.Vision app, tailored for the Apple Vision Pro. The app transports users into an immersive, educational mixed reality experience, giving people a virtual taste of destinations before deciding where to book.
The AppleVision Pro is “a revolutionary spatial computer that seamlessly blends digital content with the physical world.” The headset combines augmented reality (AR) and virtual reality (VR) capabilities in a feat of technology that caused ripples internationally. It merges the virtual and real worlds; with AR, users can overlay digital information and interactive elements onto their surroundings while VR offers users a fully simulated and immersive digital experience.
Trip.com’s new app leverages the Vision Pro’s wide landscape settings and robust spatial computing offering users the chance to virtually explore places like Mount Everest, Guilin, Maldives, Antarctica, and the Sahara Desert. Supplementing this with an educational push, the experience is completed with voiceovers and additional information on the areas, encouraging users decide between potential destinations in a new way.
Mr Bo Sun, Chief Marketing Office, Trip.com Group, said:
“The Trip.Vision app revolutionises the travel experience by allowing users to virtually immerse themselves in renowned destinations, enhancing their itinerary planning. This marks a whole new approach, where the exploration begins before the booking, and every destination becomes a story waiting to unfold.”
When the Apple Vision Pro was debuted last year, there were questions around how it would be leveraged by the industry. Do you think Trip.com’s app is the future of travel booking?
Amadeus announced it is acquiring leading biometric solutions provider, Vision-Box for €320 million. This will enhance Amadeus’s portfolio, enabling the delivery of a full end-to-end seamless passenger experience through booking, arrival at the airport, border control, and boarding.
Biometrics technology has a range of benefits for the travel industry, streamlining the travel experience for passengers whilst enhancing security and efficiency at the airport. As such, it is expected to grow rapidly in the coming years. Estimated at a value of £47.8b in 2023, the Biometrics Research Group projected that the global biometrics sector will grow to $86.1b by 2028.
Vision-Box’s capabilities around border control solutions present a key opportunity for Amadeus, which is seeking to “connect the travel industry through a seamless ecosystem approach.” Working well with the company’s existing technology, the acquisition of Vision-Box will help to enhance compatibility between airport, airlines, and border control authorities through biometrics.
“Biometrics is a strategic and fast-growing industry, and Vision-Box’s capabilities will allow us to accelerate our growth in this area. With a portfolio which is deeply complementary to our existing offering for both airports and airlines, our combined best-in-class solutions will now deliver a seamless passenger journey from booking to boarding. This acceleration of our ecosystem approach will bring immediate and tangible benefits to our customers and travelers: it’s how travel works better.”
In an interview at World Aviation Festival, Diane J. Sabatino, Acting Executive Assistant Commissioner of the Office of Field Operations, U.S. Customs and Border Protection (CBP) highlighted the importance of collaboration across stakeholders and the challenges that come with biometrics. During the short discussion, Diane also broke down general misunderstandings around facial biometrics and explained how these can be mitigated with transparency around data practices. Watch the full interview here.
The past year has seen a massive increase in new generative AI solutions coming to market and an increased focus and usage of AI tools and solutions. In fact, in a recent survey of 2,620 global business leaders by analyst firm, Deloitte, 94 percent of respondents agreed that AI is critical to success over the next five years. Also, 79 percent of respondents claimed to have successfully deployed three or more types of AI applications.
This interest in AI among the global business community makes sense. Today’s advanced artificial intelligence solutions can take massive amounts of disparate data, analyze it, find correlations and patterns that may have been imperceptible to humans, and deliver actionable insights that can be used to make business decisions.
If acted upon, these actionable insights can streamline operations, identify efficiencies, cut costs, and find new solutions to old problems. These benefits are important for any company in any industry, but they’re essential for modern airlines for three very specific reasons:
Smarter flight planning and paths
There are numerous factors that impact the flight paths that pilots take. A pilot may work to avoid congested airspace, major weather incidents, or pockets of turbulence.
However, many of these things change in real-time during a flight, and identifying the most effective and efficient flight path involves weighing many of these constantly changing factors.
Modern AI solutions can leverage real-time data about things like weather patterns, air traffic, and aircraft location to identify the optimal path for any flight. Much like how certain GPS software can reroute recommended car driving directions to accommodate changing scenarios – like a car accident or congestion – modern aircraft flight path optimization solutions can look at shifting conditions and propose flight paths that prioritize safety, offer the best passenger experience, and minimize the amount of fuel used.
With fuel remaining a large expenditure for most modern airlines, the ability to reduce fuel consumption can go a long way toward reducing operating expenses and increasing profits. But fuel savings are just one way flight path optimization can save airlines money.
Smarter resource allocation
Predictive solutions have been developed that weigh multiple environmental conditions and leverage AI to better predict when an aircraft arrives at the gate (IN/EIBT) and on the runway (ON/ELDT). This gives airlines access to continually updated ETA predictions that are 30 percent to 50 percent more accurate by leveraging information like weather, aircraft positions, arrival gates, operating carriers, aircraft type, and more.
Analyzing historical flight-related data sets and comparing them to sensor data can enable airlines to better predict wear and replace parts proactively. Maintenance work can then be moved out of the operating day and into the overnight, reducing the potential for maintenance-related delays.
Utilizing these incredibly accurate ETAs, airlines can make more informed decisions about the utilization of aircraft, personnel, and space – such as gates. This can enable airlines to proactively swap a flight’s aircraft or crew in the event of an early or delayed arrival. It can enable them to ensure gate space is properly allocated based on predicted arrival times. It can even be used to ensure crews are prepared for early or late aircraft arrival to eliminate time wasted sitting on the tarmac waiting for a crew to arrive to meet the aircraft.
These seemingly insignificant delays and inefficiencies can add up – delaying an aircraft’s turnaround time and incurring significant costs to the airline. These little delays can also upset passengers – causing them to miss connections or sit on the tarmac when they could be making their way to their final destination.
Smarter, more proactive maintenance
Maintenance problems or equipment failures to any part of the aircraft could cause a flight to be delayed or canceled – not just the systems and components that are needed for flightworthiness and safety. But what if an airline could predict that a part or component might fail after a specific number of flights or miles, and proactively replaced that part or component in advance – at a time that was more convenient?
This is exactly the type of capability that AI-enabled maintenance solutions can bring to airlines.
According to Seth Babcock, who oversees Technical Operations Digital and Data Solutions at Collins Aerospace, these solutions can be used to,”…analyze historical flight-related data sets and compare that to sensor data to better predict wear and replace parts proactively. This enables airlines to drive work out of the operating day and into the overnight, reducing the potential for maintenance-related delays.”
By moving flight maintenance to overnights, and proactively replacing or repairing components before they fail, airlines can eliminate the surprise maintenance issues that arise at the gate and delay flights. This keeps passengers happy, reduces costly flight delays, and improves operational efficiency.
AI is becoming increasingly commonplace in today’s global business community – and the commercial aviation industry is no exception. Several solutions are being introduced for modern airlines that use advanced AI technologies to help users make better, more data-driven decisions. And these solutions will only become more effective and capable as the amount of aircraft, weather, flight, and positioning data available to airlines increases.
It doesn’t matter if we are talking NDC or not the biggest hassle seems to be changes. Not only is it costly it is complex. You would think with automated coding and automated tools to change that this would be no big deal but, in every discussion, we keep coming back to servicing as the biggest challenge for both corporate and leisure travel. In the debate we hear “Change has not been implemented for NDC bookings”, “Our main reason for not implementing NDC is the challenge with servicing”, “Servicing remains the biggest challenge to our automation flow”, “Customers do not understand what they are paying for”. Isn’t it time that we start thinking about how we can modernize this process?
Changes are a corporate pain point
At the latest GBTA conference a corporate stated that they deliberately book as many one-way trips as possible as they struggle with the change process. Not only do they think they are overpaying for the service of change it has become an impediment to innovation. It is easier to book one-ways and gives them much more flexibility. Question is if airlines ever expected this to be the case? Very similar to virtual interlining that airlines never really saw coming.
Changes are a pain point for leisure travel too
And it is not only corporates that struggle with changes. On various online travel forums one of the most important questions is “Why do I have to pay a penalty not to fly”, “Why do I lose my flights from New York to London if I don’t fly from San Diego to New York?” “Why do I have to pay $3000 just to change one flight on my itinerary”. The ugly truth is that passengers do not understand the complexity and it also resonates less and less that I just forfeit a trip I want to cancel.
Changes are a pain point for airlines
For airlines servicing, exchanges, and refunds are constantly brought up as customer pain points. After the pandemic, tons of vouchers were added to the complexity as airlines had little or no experience dealing with other forms of payments than the traditional. Suddenly, they had to deal with longer validity, miles expiration and transfer of value. Customers had to deal with vouchers and expiration dates and constantly changing their plans and worrying whether conditions remained the same or whether the airline was still in business. It became very evident that the underlying airline processes and associated technology are very outdated.
Some of the problems related to changes and refunds are quite mind-boggling in 2024 such as:
Why exchange unused tickets and EMDs?
Why are there still technical restrictions on the number of exchanges?
Is the cost for both the service and the auditing of exchanges justifiable?
In this article we want to address some thoughts on modernization and what could be ways to change.
Is part of the answer marketplaces?
Both Flybondi and Royal Air Maroc have introduced marketplace concepts where the passenger can resell tickets. This type of reseller functionality has many benefits, it gives revenue management more visibility and control and an opportunity to resell. From a sustainability angle it makes better sense as we want to fill up the plane rather than having no-shows. In addition, there are many opportunities to turn these concepts into products or loyalty benefits.
Or is the answer to rethink the process itself?
Should change become a product like any other product and be unrelated to the fare itself? Rather than having a complex calculation based on availability and fares shouldn’t the change product be more dynamic? Typically, today change conditions state that “change fee is $$$ and any fare differential”, no wonder the customer is confused.
Or would changes in payment be a way forward?
Another thought is if other payment concepts could simplify servicing? We are seeing an increase of new payment and retailing practices being trialled both in travel as other industries and believe that payment will be one of the drivers that will change the legacy eco-system and support inter-operability for multi-modal travel. The common characteristics, however, will be the need to be flexible to changes after the initial order/reservation has been made.
An example of a retail practice being trialled is ‘pay on delivery’. In the Netherlands a global payment provider and a local supermarket chain have introduced this concept. Simply explained you purchase a product or service, the payment platform collects the money and when the product or service has been delivered the seller, releases the funds from a holding account.
Another possible solution could be ‘Pay When You Fly’ (‘PWYF’), it doesn’t solve all the problems, only some of them, and other technology like blockchain or travel wallets are needed. But the more choice and control the airlines offer to customers, trust and loyalty grows, for example by offering PWYF.
It should be noted that PWYF is not new. It has been around for more than 20 years and is used by several airlines typically for corporate travellers. But the question is can it scale?
Which ones of these problems would go away or are radically changed if we were to apply PWYF and how can it facilitate a transition to Offer/Order?
We do not have to remove tickets and EMDs in our transition to Offer/Order, but PWYF can eliminate some of the pain points in the ongoing process to move to Orders. PWYF would eliminate the exchanges of unused tickets and EMDs. It would simplify IROPS (Irregular Operations) when the airline is not delivering a service ordered. It also saves on handling time of complaints, and it is easier to automate compensation business rules. In addition, we would significantly reduce cost of auditing.
Finally, PWYF would work as an extra incentive for travel retailers (airlines, OTAs, TMCs) to ensure that the promises to their customer are delivered; this will further build trust and loyalty.
Will WEB3 come to the rescue?
WEB3/blockchain technology (like the decentralized Camino Network, the blockchain for the global travel industry) is uniquely suited to support this transformation without even needing payment platforms. By using smart contracts – programs that run on a blockchain and execute agreements without intermediaries – you can program any kind of payment rules and payment flows. This means the settlement can be entirely automated based on some external trigger and both parties involved in the contract have the security that the payment will only happen if certain conditions (coded into the smart contract) are met. Pay when you Fly could easily be implemented via smart contracts that provide escrow and could be triggered to initiate the payment when the flight departed.
Pablo Castillo, CTO of Chain4Travel, the company tasked by the Camino Network Foundation to build the Camino Network: “Pay when you Fly is a great example how using modern technology we can reimagine the payment and booking processes to make it more flexible and adapted to the customer needs by eliminating the complexity of transactions, especially refunds, and create a seamless experience for both airlines and customers. With Camino Network, travel companies can finally leverage web3 technologies to drive digital innovation on a secure, agnostic and scalable operating system for travel.”
Reality check, what’s the impact of implementing Pay when you Fly?
By Paul van Alfen, Travel Payments Strategist at Up in the Air: “a ‘can of worms’ comes to mind when looking into the impact on the current ecosystem of switching from ‘pay at booking’ (or at ticketing a couple of days later) to ‘pay at departure’, at scale. Stakeholders from across the business will see massive changes and an overhaul of systems, processes, and policies, with Finance (cashflow), Revenue Management (forecasting) and Revenue Accounting (reconciliation, reporting, auditing) the most affected. It’s probably fair to say that a new generation of systems will be required, combined with a customer centric mindset and a different (non-pre-payment based) financing model, to make PWYF work at a large scale and across the direct and indirect channels for both corporate and leisure customers.
The main difference with Buy Now Pay Later (‘BNPL’), when it comes to impact, is that BNPL does not affect the timing of payment to the Airline, it’s the full amount at the time of booking and therefore ‘business as usual’.
In summary
We predict that considerable change appears to be inevitable at some point in time to allow flexibility in ordering, changing/servicing, payments, and settlement. Change is driven by the customer and new entrants in the travel ecosystem. Pay when you Fly is only a small part of that change but could lead the way towards much needed simplification.
This week, LATAM Airlines Group signed a new NDC agreement with Trip.com. Together, the Latin American airlines group and the leading travel service provider are working to deliver a more efficient travel experience for customers with the new NDC standard.
The agreement is expected to provide “a contemporary and streamlined ticketing experience,” unlocking the advantages of NDC standard technology. As highlighted in the announcement, customers can anticipate several benefits, including access to a complete and more comprehensive selection of airline offerings and the option to buy additional products, services, and add-ons such as baggage allowance and seats. Furthermore, the tech will give customers a broader range of ancillary services with more detailed information.
Andreas Schek, Vice President of Sales and Branding of LATAM Airlines Group, said:
“We are proud of this collaboration with Trip.com Group on the implementation of the NDC standard, as it allows us to explore ways to enhance its efficiency further. This is a significant milestone in the future of distribution that will benefit our global customers
Earlier this month, SriLankan Airlines began a global roll out of its NDC agents booking portal, SriLankan Direct Connect, facilitating direct access to the airline’s reservation system. As a pioneer amongst South Asian airlines with regards to the adoption of IATA’s NDC technology, the airline is leading the way with this milestone moment. Additionally this month, Etihad Airways renewed and expanded its content distribution agreement with Travelport, focusing on the delivery of NDC content and servicing.
At World Aviation Festival, the founders of NG Aviation, Simona Franková and Marek Franko, joined to discuss the digitisation of aeronautical data. NG Aviation enables relevant stakeholders to communicate in a common language and data format, increasing the value of aeronautical information by guaranteeing data quality and reliability.
During the five-minute interview, the company’s founders highlighted key benefits that airports can derive from embracing the digital transition. These included facilitating the optimisation of existing infrastructure and transitioning from paper-based to digital systems, amongst others.
NG Aviation’s role in encouraging stakeholders to speak a common language was also explored, looking at how this addresses key challenges in the industry. The discussion touched on how adopting a common language can help with collaborative decision making which in turn catalyses innovation and development within the industry.
For all this and more, watch the brief interview below.
Earlier this month, hydrogen-electric engine developer ZeroAvia and Verne announced the signing of an MoU. Working to realise the potential of hydrogen within the industry, the pair will assess the benefits of scaling cryo-compressed hydrogen (CcH2) storage and refuelling infrastructure at airports worldwide.
Verne is a hydrogen storage and refuelling technology start-up looking at using CcH2 for heavy-duty sectors. The company’s analysis shows CcH2 can achieve 40 per cent greater usable hydrogen density than liquid hydrogen and 200 percent greater usable hydrogen density than 350 bar gaseous hydrogen. It also indicates that the correct application of CcH2 can reduce refuelling time as well as the cost of densification.
The MoU will see the two company working together to jointly evaluate the opportunities for using CcH2 on-board aircraft and for conducting CcH2 refuelling from gaseous hydrogen (GH2) and liquid hydrogen (LH2) sources.
Hydrogen is often labelled the “fuel of the future,” and is set to play a fundamental role in the decarbonisation of the aviation industry. Airbus recently estimated that renewable hydrogen has the potential to reduce the industry’s CO2 emissions by up to 50 per cent.
ZeroAvia’s mission is to “see a hydrogen-electric engine in every aircraft,” and despite only being founded in 2017, the company has already made history with its zero-emission flight. However, there are many challenges when it comes to the integration of hydrogen into the current infrastructure, and cross-company collaboration will play an important role in resolving these.
5G has the power to propel aviation forwards, whether by enhancing the efficiency of existing systems or providing the foundations upon which new technologies can be launched. From fortifying security to facilitating the teleoperation of autonomous vehicles here are just four ways that 5G is transforming airports.
Security
Safety and security are two of the core principals of aviation, and the implementation of 5G has the ability to bolster security measures within the airport environment. An optimised 5G network has the capacity to run high-quality security systems which include near real-time situational data analysis through AI-powered security monitoring services as highlighted by Verizon. The network can also be leveraged for biometrics and facial recognition technologies which allow for elevated security measures focused around passenger safety.
IoT
4G technology can manage approximately 10,000 devices in a square km, but a 5G network is able to eventually manage up to one million. Through connecting and tracking the extensive elements within an airport, including bags, inventory, and even passenger flow, operations can be streamlined.
Smart airports for efficiency
Microsoft have highlighted how smart airports can leverage technology to expand air transport movement (ATM) capacity, thereby increasing flight volume and related business opportunities. Smart airports can help to reduce costs and increase revenues for stakeholders.
Automated vehicles
5G provides the high-speed connectivity and ultra-low latency needed for the teleoperation of autonomous vehicles. One example of this is the 5G Aviation Testbed at Changi Airport Terminal 3 which enables the monitoring of vehicle operations remotely in real time. Lee Seow Hiang, CEO of Changi Airport Group, described the reliability and enhanced connectivity of a 5G network as “a key enabler” for the world-leading airport.
Sabre’s latest survey brings a nuanced approached to understanding passenger behaviours. Collecting insights from industry professionals, the research seeks to identify what really matters to people when making travel plans in 2024.
The survey “combin[es] the insights of hundreds of Sabre team members globally alongside data analytics, [for] a deep dive into how individuals plan to travel.” By incorporating the behaviours of travel professionals, it weaves together real-world context, a deep understanding of the prevailing challenges faced by the industry, and an acute appreciation for the emerging trends at play.
Here are the seven key findings shared in the survey:
Increased confidence among travellers surveyed, with more people booking at least three months in advance for leisure trips.
More than three-quarters of travellers surveyed are planning at least two vacations and more than a fifth say they are taking four or five leisure trips.
Nearly 90 per cent of travellers surveyed are spending about the same or more on travel than they did in 2023, with Gen Z increasing their budget the most.
2024 appears to be the year that revenge travel will come into its own for travellers surveyed in Asia Pacific.
Long-haul is expected to be in the cards for more travellers in 2024, with more than half surveyed either choosing long-haul or saying distance doesn’t matter to them.
Gen Z surveyed travellers in particular are concerned about losing their luggage, and are purchasing insurance to guard against it.
Surveyed travellers in Europe, the Middle East and Africa are looking for family-orientated destinations while those in North America are focused on couples’ trips.
Additional interesting findings include the differing priorities for leisure and business respondents regarding ancillaries. The below graph, Fig 2.0 in the survey, shows that business travellers value efficiency, placing lesser emphasis on check-in luggage and a preference for sitting towards the front of the plane for a speedy exit. Conversely, leisure travellers show a leniency towards comfort, opting to sit with family members, selecting aisle or window seats, and choosing in-flight meals.
Fig 2.0 Sabre survey
For a more in depth analysis, see the full results of the survey. As the industry works to meet evolving passenger expectations, it is increasingly necessary to map out a deep understanding of the changing travel landscape.
VINCI Airports and Aeroportos de Portugal (ANA) have partnered with Vision-Box to trial a new biometric boarding system for passengers in Portugal.
At the beginning of the year, the project was launched in Lisbon and Porto airports and will be extended to Faro, Madeira, and Ponta Delgada for the second half of 2024. The initial trial will be with selected passengers on TAP Air Portugal who will be able to rely on facial recognition software to board, with no need to present a pass.
According to the press release, the registration process for passengers on these test flights is as easy as: in the app or at the kiosk, simply photograph/scan your boarding pass, electronic passport or Portuguese nationality card and take a selfie, accepting the terms and conditions.
Thierry Ligonnière, CEO of ANA Aeroportos, said:
“We are very excited about this launch, which represents the most advanced investment in innovation at airports with tangible results for the traveller experience. Facial recognition technology will enable a faster, simpler journey where travellers gain comfort and time, ensuring complete security and confidentiality of their data and the process. We are excited about this launch and the expansion of biometrics to more airlines and airports, making the boarding process even more efficient.”
The new launch aims to simplify the journey for passengers, streamlining the airport process and offering a paperless, contactless journey. Additionally, biometrics increase security using advanced algorithms to confirm the identity of passengers.
Historically, biometric solutions have raised questions around data privacy but TAP’s press released confirmed that personal data will be protected until the flight’s departure, at which point it will be deleted.
If airplanes and airports are the gateway to travel, passports are the key. Recently, the Henley Passport Index shared its annual ranking of the world’s most powerful passports based on the number of destinations their holders can access without a prior visa. This year, the top spot is jointly held by six countries, each granting their passport holders visa-free access to 194 countries.
The index uses exclusive data from the International Air Transport Authority (IATA) to determine the order. Here are the countries ranked in the top 10 for their “visa-free” score.
France, Germany, Italy, Japan, Singapore, Spain – 194
Finland, South Korea, Sweden – 193
Austria, Denmark, Ireland, Netherlands – 192
Belgium, Luxembourg, Norway, Portugal, United Kingdom -191
“The average number of destinations travellers are able to access visa-free has nearly doubled from 58 in 2006 to 111 in 2024. However, as we enter the new year, the top-ranked countries are now able to travel to a staggering 166 more destinations visa-free than Afghanistan, which sits at the bottom of the ranking with access to just 28 countries without a visa.”
The index also found that in 2024, the least powerful passports are as follows:
Afghanistan – 28
Syria – 29
Iraq – 31
Pakistan – 34
Yemen – 35
Somalia – 36
Libya, Nepal, Palestinian Territory – 40
Bangladesh, North Korea – 42
Eritrea, Sri Lanka – 43
Iran, Lebanon, Nigeria, Sudan – 35
As evidenced by the Henley Passport Index, the influence passports wield is ever changing. And now, their physical role in travel is too.
According to a report by The Times, biometric gates which are being trialled early this year will allow passengers travelling to the UK by air to skip passport checks. This is intended to reduce friction while enhancing security. Back in September, Singapore’s Changi Airport similarly announced automated immigration clearance would allow passengers to pass through without showing or scanning their passports. Following in these footsteps, Canada and Vietnam are themselves progressing towards passport-free border checks.
As we move towards a future of seamless travel, the role of the physical passport is undergoing a transformative shift. For now, it remains a key component for navigating the world. But, in the years to come physical passports may be an artefact of the past.
This week, London Gatwick became the first international airport to open a dedicated electric vehicle (EV) charging station. The Electric Forecourt® opened on 8th January and has a new GRIDSERVE facility available to the public.
As part of the airport’s push for 60 per cent of journeys to and from the airport to be zero or ultra-low emissions by 2030, the new charging bays are powered by 100 per cent net zero energy.
Bronwen Jones, Development Director, London Gatwick said:
“We are making sustainability part of everything we do here at London Gatwick and we are committed to creating a low-carbon economy by providing new infrastructure that everyone can use, so together we can reduce emissions. As we invest in our long-term, future growth additions such as GRIDSERVE are vital to London Gatwick’s ecosystem.”
The site has been strategically placed for access by passengers, local residents, commuters, staff, and businesses. Prioritising convenience, the 30 high-power and low-power electric vehicle chargers take contactless payment and visitors can speak to a GRIDSERVE EV Guru to gain advice on which EV may best suit their needs.
As detailed in the press release, the Electric Forecourt® is located on the Ring Road South approach to London Gatwick’s South Terminal and is open every day from 4:30am to 10:00pm, with chargers available 24/7 year-round.
Having already reached Level 4+ ‘Transition’ of the Airport Carbon Accreditation scheme, Gatwick has accelerated its commitment to net zero for its Scope 1 and 2 carbon emissions by 10 years.
The COVID-19 pandemic not only dramatically limited travel but also caused permanent shifts in traveler behavior, forever changing “business as usual” for airlines. No touchpoints with travelers have changed more profoundly than loyalty programs.
In 2020, airline industry revenues totaled $328 billion, about 40% of revenue from the previous year, McKinsey reports. Benefits designed for frequent flyers continue to lose their efficacy as uncertainty around the return of business travel remains.
There are predictions that anywhere from 36% to 50% of business travel may never return, according to Forbes, especially as remote conferencing grows in its acceptance.
COVID-19 will subside, but airlines may need to come to terms with a fundamental change in how they approach loyalty. Loyalty programs themselves are a business-critical source of revenue, after all, with complex partner ecosystems that depend on frequent traveler activity. But as Forbes describes, “Loyalty programs will change because people will likely be traveling less, and the old rules about what was rewarded and what rewards are desired may also change.”
With legacy loyalty technology, airlines have backed themselves into a corner.
Simply put, loyalty programs need to evolve. Airlines must make programs more agile, increase their diversity of offerings, and reconsider the various tiers and categories that define their loyal travelers.
Unfortunately, many airline business leaders don’t realize their existing loyalty technology platforms—often longstanding, monolithic systems—severely limit their success in adapting to market changes. Too many airlines have invested in framework systems that offer loyalty functionalities but do not accommodate the complex needs of individual airlines and their customers.
Loyalty projects fail because airlines attempt to custom-fit new technologies to these existing legacy solutions. Too often, innovation in loyalty programs is capped, or scrapped, because underlying systems do not support it or are too expensive and time-consuming to adapt.
Business leaders need to start taking seriously new opportunities to transform the foundational digital technologies that support their loyalty programs. Fortunately, modern cloud-native platforms can support:
More dependable business benefits
A wider variety of customer benefits
New currencies and “wallets”
More versatile partner and business integrations
More agility and flexibility airlines need to meet current and future industry challenges.
In this report, we consider the new opportunities these cloud- native digital tools provide when adapting loyalty programs to today’s market realities. We also illustrate how these tools can carry airlines to future success – even in the event of future crises.
Ahead of Aviation Festival Asia in February, David Emerson, CCO, Virgin Australia shared insights into the airline’s current position and future strategies. At Aviation Festival Asia, Emerson will join other commercial leaders in the APAC region to unpack the question, “Where do you see passenger behaviours landing after the post covid boom - will this be the “new normal” or will there be a “next normal?”
This brief interview touched on the airline’s strategic position, looking at plans to capitalise on the growing demand in the region. Here, the airline’s CCO discussed Virgin Australia’s ongoing transformation as well as its investment in digital tools to meet customers’ evolving expectations.
Looking at priorities for 2024, Emerson outlined the continuing transformation process, pointing to better understanding and serving key customer segments and increasing loyalty as an important steps. To hear Emerson hint at some of the exiting upcoming initiatives, watch the full interview.
To hear David Emerson speak on these topics in person alongside representatives from SAUDIA airlines, AirAsia, and Thai Airways International make sure to book your ticket now.
This week, JetBlue Airways announced the departure of their CEO, Robin Hayes, effective 12 February 2024. In a press release, Hayes shared this will allow him time to focus on his health and well-being.
It was unanimously decided by the Board that Joanna Geraghty, currently the airline’s President and Chief Operating Officer, will succeed Hayes, having been recognised as a strategic leader in a period of widespread industry disruption. Discussing the upcoming role, Geraghty said:
“I am honoured and excited to serve as the next CEO of JetBlue. With a beloved brand, an industry-leading customer experience, a unique culture, and the industry’s best crewmembers, JetBlue has long been a disruptor. I’m excited to continue working with JetBlue’s 25,000 crewmembers who are as energized as I am about challenging the status quo and bringing humanity to an industry long dominated by the legacy carriers. I’m so proud of what we’ve accomplished over the last 20-plus years, and I am looking forward to building on this momentum as we execute on our strategic initiatives, return to profitable growth, and generate sustainable value for our shareholders and all our stakeholders.”
Having joined JetBlue in 2005, Geraghty’s career within the airline includes a role as Executive Vice President Customer Experience, responsible for airports, customer support, and inflight service. She also served as Executive Vice President, Chief People Officer from 2010-2014, following her time as Vice President, Associate General Counsel and Director, Litigation and Regulatory Affairs.
With her appointment in February, Geraghty will make history as the first female CEO of a major US airline, joining the growing list of airlines globally with exceptionally qualified female CEOs including Qantas, Virgin Australia, Air France, and KLM.
The appointment of Geraghty has sparked discussion about the gender imbalance in the industry which is especially clear at the highest levels of leadership. Women currently account for just three per cent of CEOs across the top 100 aviation organisations worldwide. Although initiatives like IATA’s 25by2025 seek to increase the number of women in senior positions, systemic issues hindering women’s professional progression must be rectified before the industry can truly benefit from the advantages of more representative leadership.
Natalia Lechmanova, Senior Economist, Mastercard Economics Institute and Sheridan Stavac, Global Travel Segment Lead, Mastercard Data & Services joined to discuss the impact of changing consumer spending preferences on the travel industry.
Mapping out the post-pandemic landscape, Natalia explored the evolving behaviour of travellers, looking at when and where they choose to spend money. Sheridan expanded on this, shedding light on how travel companies are adapting to these changing traveller trends. The conversation further touched on driving data-driven decision making and a shifting approach to loyalty.
For more insights from Mastercard on adapting to the evolving travel landscape watch the full interview below.
As part of their partnership, Spotify and Delta are releasing a new collaborative series called “The Passport Sessions,” available exclusively on the airline’s in-flight entertainment system. The US carrier and music streaming titan initially partnered in September 2021, bringing their audio content to Delta’s seatback entertainment.
The series bridges songwriters, producers, and artists from “twin cities” to create music and unpack its influence on different cultures.
“In a world where beats can transcend borders and music is a universal language, “The Passport Sessions” is an exploration into the music, cultures and stories that connect us.”
Alicia Tillman, Chief Marketing Officer, Delta explained the series is:
“About more than showcasing music […] It’s a harmonious celebration, quite literally, of Delta’s commitment to connecting people to places, passions and their own potential. We’re weaving the cultural fabrics of destinations like Miami and Medellín into the very essence of our in-flight experience. It’s an embodiment of the magic that can happen when two beloved brands collaborate to live out their shared values in new and interesting ways.”
“The Passport Sessions” is commencing with “From Miami to Medellin,” featuring Andy Clay and maye who collaborate with Juan Duque and Aria Vega in Colombia. Working to elevate the inflight experience with innovative collaborations, Delta and Spotify’s partnership is advancing inflight entertainment with a distinct twist.
NDC gives airlines unprecedented control over their offers and orders in third-party distribution channels. It’s the key to modern airline merchandising and a better online shopping experience.
A new era
Fast-tracked in part by the global pandemic of 2020, the airline industry as a whole has strengthened its digital technology capability. The wave of digital transformation across all industries has raised consumers’ expectations – if you can’t deliver a fast, seamless online experience, you could quickly lose customers to your competitors.
Instead of visiting multiple websites or calling multiple travel brands to create their own travel package, consumers can now visit travel aggregator sites or use metasearch engines to find the best available options. Consumers are balancing value and convenience with the expectation that they can customize their travel selections. New channels, choices and expectations have reinvented their purchasing behaviors.
And while airlines might have complete control over the options available on their websites and mobile apps, third-party channels frequently compare airline offers based solely on flight schedules and unbundled airfare prices. What’s more, third-party channels often lack the ability to offer the add-on ancillaries that travelers expect. Everyone loses: the airline, the traveler and the travel seller.
What’s keeping travel sellers from embracing NDC?
Money. Time. Opportunity.
Achieving widespread adoption of NDC across the travel industry requires collaboration and standardization between airlines, travel agencies, technology providers and other stakeholders. As with most industries, the overall travel industry can be slow to change. Some travel sellers are concerned about servicing capabilities, like the ability to modify bookings after they have been created. Others are waiting to see if NDC will actually take off or fizzle out. There’s a lot at stake. For airlines and travel sellers.
But some OTAs (online travel agencies) see the trajectory and are eager for NDC content; they recognize airlines are moving their best content from traditional sales channels, or only adding new offers to NDC-enabled channels. Airlines are offering exclusive fares and promotions to get travel sellers to move to NDC, and major travel agencies and aggregators, such as Expedia, Booking.com, CWT, Kayak and more, have already made the leap.
Standardized messaging creates new opportunities
With its standardized API messages and the opportunity to introduce rich content, NDC lets airlines regain control of how third parties sell their products and services. Beyond the specifics of standardization and technology schemas, NDC is simply a means to an end that reflects the reality of the modern travel ecosystem. With it, travel sellers can more broadly access and sell the products and services that airlines are already selling through their websites and mobile applications.
Changing norms
NDC is less about compliance and more about capabilities. It’s the enabler that the industry is leveraging to evolve airline reservation systems from aging and limiting order taking systems to flexible digital retailing platforms. It’s imperative to give travel agencies and corporate customers the same merchandising capabilities that airlines have on their own websites and mobile apps. Airlines that are slow to update their legacy mindset may miss out on all NDC can deliver.
New innovations like lie-flat seats, inflight internet and entertainment, sky couches, sleeping pods and more are elevating the travel experience and adding real differentiation to an otherwise commoditized product. But airlines need to be able to sell those enhancements to drive new innovations.
NDC can help airlines accelerate the move to modern digital merchandising by offering transparency into their full array of products and services to enhance the traveler journey, creating a path to full product visibility.
The bottom line
The adoption of NDC is transforming the travel ecosystem in profound ways. It’s giving airlines more control over their distribution strategies and helping them differentiate themselves to attract travelers. It’s also reshaping traditional business models and changing the way airlines do business with travel sellers. Airlines and travel sellers need to work together to unlock the opportunities that NDC enables.
The time to adopt a new technology platform leveraging data driven, digital-first, modern APIs to connect with your partners – all powered by scalable cloud-based solutions – has never been clearer. Time to get on board.
New innovations like lie-flat seats, inflight internet and entertainment, sky couches, sleeping pods and more are elevating the travel experience and adding real differentiation to an otherwise commoditized product. But airlines need to be able to sell those enhancements to drive new innovations.