ARE AIRLINES READY TO CONNECT WITH TRAVELERS?

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1 ARE AIRLINES READY TO CONNECT WITH TRAVELERS? Nigel Pickford Director, Market Insight, SITA

2 ARE AIRLINES READY TO... Tailor my trip? Ease my anxiety? Keep me posted?

3 READY TO...TAILOR MY TRIP? Shopping Booking Entertainment Eating & drinking Relaxing Investment Booking channels Shopping channels & services In-flight services

4 OVER 80% OF AIRLINES ARE FOCUSING ON PERSONALIZATION 82% 30% 92% 16% 85% 22% 73% 91% 38% 75% R&D Major program 42% 37% 52% 76% 63% 31% 53% 38% Solutions to improve personalization Passenger services via smartphone Passenger services via tablet Passenger services via social media Expanding ancillary sales Wireless in-flight services for passengers

5 33% INCREASE IN BOOKINGS VIA APPS EXPECTED NEXT YEAR

6 OMNI-CHANNEL SHOPPING TO MATURE BY 2018

7 ACTIVITIES MOST VALUED DURING DWELL TIME & ON-BOARD

8 PASSENGER APPS TODAY 100% 75% 50% 25% % of airlines offering services

9 MUCH MORE FOCUS ON APPS & CHOICE IN-FLIGHT PLANNED BY % 75% % of airlines offering services

10 TRUE PERSONALISATION DEPENDS ON GOOD DATA

11 READY TO...TAILOR MY TRIP? YES, airlines are increasingly delivering personalization By 2018 Over 80% of airlines are focused on personalisation Omni-channel shopping channels are maturing fast Half of airlines will offer more in-flight choice BUT, inconsistency in BI and data quality may hinder progress

12 READY TO...EASE MY ANXIETY? On departure In-flight On arrival Check-in Bag-drop Bag collection

13 EMOTIONAL EXTREMES DURING THE JOURNEY

14 MAJOR LEAP EXPECTED IN MOBILE CHECK-IN 75% High - Today 55% 56% 47% Low Cost Airline Average 24% 23% 23% 17% 20% 12% 9% 8% 1% 1% 1% Global average - Today Global average - By 2018 Low - Today

15 PASSENGERS PREFER STAFFED BAG-DROP

16 OPTIONS INCREASE TO REDUCE BAGGAGE ANXIETY Today By 2018 Bag Tag Printing 77% Missing Bag Reporting 36% 9% 49% -16 Missing Bag Reporting Baggage location status 11% 61% 10% 70% Bag drop (unassisted) Bag drop (assisted) +8 17% 74% 37% 78% -8

17 ARE AIRLINES READY TO...EASE TRAVELER ANXIETY? YES, services addressing pain points are developing quickly Passengers are less anxious when given control Major uptake in self-service check-in Mobile check-in is taking off Multiple self-service options set to reduce baggage anxiety BUT, not all stressful areas are under airline control: Security & passport checks driven by multiple stakeholders Baggage collection not just an IT issue

18 READY TO...KEEP ME POSTED? Real-time information Bag tracking services Integrated communication services Location-based communications Tablets for direct contact

19 UPDATES STILL TOP 2 PASSENGER DEMANDS FOR NEW AIRPORT SERVICES

20 LOCATION: THE NEXT DRIVER FOR IMPROVED COMMUNICATIONS

21 PERSONAL CUSTOMER SERVICE: TODAY S USAGE OF STAFF DEVICES 100% 100% 75% 75% 50% 50% 25%

22 MASSIVE GROWTH IN USE OF STAFF TABLETS BY % 100% 75% 75% 50% 25%

23 AS AN INDUSTRY, HOW CAN WE IMPROVE PASSENGER SATISFACTION ACROSS THE BOARD? Tailor my trip: Booking Shopping Entertainment Booking Shopping Entertainment Eating Eating & & drinking Relaxation Relaxing On departure In-flight On arrival Real-time information Bag tracking services Integrated communication/ services

24 58% OF AIRLINES RUNNING INTERNET OF THINGS PROGRAMES BY 2018 IoT

25 ARE BEACONS THE FIRST STEP FOR IoT? IoT

26 BEACONS END TO END? IoT

27 LOCATION, LOCATION, LOCATION IMPORTANT FOR OVER 33% OF AIRLINES BY 2018 IoT

28 AS AN INDUSTRY, HOW CAN WE IMPROVE PASSENGER SATISFACTION ACROSS THE BOARD? IoT IoT is seen as an opportunity by airlines to improve services 58% of airlines running internet of things programmes by % have budget allocated Growing short term interest in beacons Location, location, location: Important for over 33% of airlines by 2018 BUT, airlines need to invest to develop services As IoT matures, apps will become more sophisticated and more and more data will be created and consumed

29 Thank you Download the 2015 Airline IT Trends Survey at:

30 DISCLAIMER Any use, republication or redistribution of this content is expressly prohibited without the prior written consent of the Author. Permission to copy and reproduce content may be granted by the author, at their discretion, and by request only. Source: presentation of Nigel Pickford, SITA at the 2015 SITA Air Transport IT Summit, Brussels Air Transport IT Summit

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