As the industry plans to support a near doubling of passenger and cargo numbers by 2036, the aviation industry anticipates significant transformations, as in any industry, addressing the critical issues like climate change and fuel efficiency. Here’s a deep dive into the pivotal insights that shed light on the aviation landscape in 2024 and beyond.
What do we expect in 2024?
1. Charting the Path to Net Zero, but what is AI doing about it?
Achieving net-zero carbon emissions by 2050 represents a monumental challenge for the aviation sector in the fight against climate change. To fulfil this commitment, a comprehensive approach is essential, with IT innovations playing a pivotal role.
Key enablers, such as AI, play a crucial role in driving this transformative change. These advanced technologies not only enhance operational efficiency but also revolutionise the passenger experience, all while mitigating the environmental impact of air travel.
Leading airlines worldwide are actively exploring AI capabilities, with many at the forefront of implementing AI-driven retail strategies that align with evolving customer expectations. The aviation industry is gradually transitioning into this mindset.
AI is becoming a circuit breaker for aviation, with global adoption in the aviation market expected to soar in value from $152.4 million in 2018, to an estimated $2,222.5 million by 2025. As this trend continues to reshape the industry, it raises the question of how AI will influence economic growth and contribute to airlines’ global efforts to reduce future emissions.
Sustainability is evolving into a revenue-driven business model, driven by increased consumer awareness of companies’ operational practices influencing purchasing decisions. Additionally, tailored approaches to individual consumer requirements and growing investor interest in adopting sustainable practices to mitigate risks further underscore the importance of AI in the industry’s quest for sustainability.
2. There are still companies that are still only taking baby steps into integration
True transformation lies in embracing end-to-end solutions, and those who gather data on customer buying habits across a multitude of online channels also need to integrate with data stored across internal systems.
Data Integration is more than just a buzzword; it’s the linchpin that holds the potential to revolutionise airline operations. By harmonising data from various sources, including weather conditions, air traffic, aircraft performance, and passenger preferences, airlines can gain holistic insights into their operations. This comprehensive view enables them to optimise flight routes, reduce excess inventory, enhance fuel efficiency, and improve overall sustainability.
The aviation sector is recognising that end-to-end data integration is dominant to unlocking a future of greater efficiency, reduced waste, and informed decision making.
3. As of 2023, 93% of Airports are Investigating in Technology
The pandemic and the subsequent recovery have highlighted the importance of the digitalisation of airport operations that are crucial to the overall airport customer experience.
The Airport IT Insights Report by ACI had revealed a significant acceleration in the investment of digital solutions to make airports smarter, easier for passengers to navigate, and their interaction with numerous stakeholders seamless.
4. Fostering Good Customer Service with Technology
Ensuring exceptional customer service is at the heart of modern airline operations. Instead of replacing human interaction, technology should empower and support it. Airlines are increasingly focusing on customer-centric approaches, aiming to provide passengers with tailored experiences that seamlessly align with their needs and preferences. Leveraging the wealth of data at their disposal, airlines can enhance their services in real-time, utilising behavioural insights to offer relevant and appealing products.
By prioritising data collection and analysis, airlines stand to unlock several advantages:
- Enhanced Relevance: Continuous analysis of customer searches, purchase history, and pricing algorithms enables airlines to present highly relevant offers, greatly improving customer engagement and satisfaction.
- Tailored Offerings: Passengers benefit from attractive, personalised offers, leading to improved conversion rates for airlines.
- Optimised Choices: Demand forecasting, driven by data insights, allows airlines to optimise sell-through rates, reduce costs, and enhance supply chain efficiency, ultimately providing passengers with a more tailored and efficient travel experience.
5. Fuelling Customer Centricity through new, modernised customer experiences
Airlines are finding ways to monitor customers’ preferences and behaviours before, during and after their flights, spanning from pre-flight preparations to post-flight experiences.
Understanding the true worth of your customers and harnessing the power of data integration by consolidating disparate datasets into a unified source of truth. The more data an airline has related to customer purchasing or non-purchasing behaviour, the better the airline can optimise the offer.
Adopting a new data-driven mindset: Here’s the good news, our comprehensive solution, ClarityIFR is designed to extract genuine value from passenger engagement data.
With this data-driven approach, airlines can highly construct customer-centric, context-aware, and relevant offers for in-flight catering, duty-free products, and more, offers those customers are not just interested in but willing to invest in. From sourcing and developing products to supply-chain management, we align our services to predictive demand and buying behaviours, ensuring the precise offer reaches the right customer at the right time, at the right price, and on the right flight.
This strategic shift towards smarter in-flight retailing also plays a crucial role in promoting sustainability. Airlines have long grappled with the challenge of reducing their substantial carbon footprint.
Achieve More with Less: ClarityIFR is directed at airline apps and ancillary revenue generation, creating optimised in-app retail experiences based on customer personas. By forecasting stock demand profiles and recommending products, airlines can reduce weight, save fuel, and improve revenue generation. This strategic shift towards smarter-inflight retailing aligns with sustainability goals, positively impacting the environment.
Taking Action for a Greener Future
Most recently, at COP28, while global discussions unfolded on the pathway to net-zero, we already took immediate action by delivering significant emission reductions, fuel savings, and increase Revenue Per Passenger to our esteemed airline clients committed to achieving net-zero emissions by 2050.
What’s even greater: ClarityIFR solution brings forth immediate benefits to a single airline, including:
- A £29.5 million reduction in inventory
- A £22 million increase in in-flight sales per year.
- A £11 million in fuel savings per year.
- A £12,500-tonne reduction in CO2 emissions annually.
- A £1 million saving CO2 offsets.
2024 marks a pivotal moment for the aviation industry, where sustainable practices, technological advancements, and customer-centric approaches converge to shape a greener and more efficient future.