When flying through such turbulence, it’s critical to focus on the horizon. Network redesign (which typically occurs from 4 to 13 times a year, with time to subsequently validate and hand over the schedule to resource providers) will now likely have to be done weekly. Though it is sufficiently dynamic to adapt to new circumstances, it offers stable guidance when it comes to fundamental, structural changes in the size and shape of an airline. Best practices when disruptions occur require taking three steps as quickly as possible, says Vincent Lacroix, head of disruption solutions at global travel technology company Amadeus. Airlines should embrace this, to identify high-value mobile features and innovations they can add to their offerings to meet this new wave of needs. They can look for similar options based on flight schedules or offer alternatives, taking into consideration COVID-19 restrictions and customer behavior. Digital has been a crucial vehicle during this pandemic to manage communications and offload customer support from call centers. In addition, health concerns might initially curb passengers’ inclination to fly. By building the right backbone across these pillars, airlines can position themselves effectively to recover rapidly and drive growth after COVID-19. All rights reserved. Similar support has been, or likely will be, offered (whether to employees directly or to companies) in the Middle East and some Asian countries. For small airlines and tour operators, the level of support will depend to a greater extent on whether respective countries provide support to employees more broadly and whether those countries want or need to avoid favoring one airline over another. Related Expertise: Taking all these factors and hypotheses into account, we have defined three potential market structure scenarios. The most critical question today concerns the duration of the crisis in light of government responses and the progression of the virus. We see this trend reflected in the airline industry: Travelers look to mobile for initial inspiration and information, and then many move to desktop to select seats or baggage options and to pay. When customer sentiment about travel improves, airlines can take advantage of previous trip interests. “What airlines can control is a response that supports travelers through fast recovery, accurate communication, and personalized handling using the self-service tools and channels most accessible for the customer.”. Many airlines also recognize the role of mobile apps for day-of-travel communications and functions. What will the airline industry look like post COVID-19? Airlines should establish a project management office to manage cash until the environment stabilizes and regular financial processes and routines can be implemented once again. Also, we expect that governments might begin imposing specific limitations for inbound and outbound passengers, including requirements before boarding (similar to the security measures put in place after terrorism events), such as mandatory health screenings or certificates. Our flight plan for the new normal takes into account various air travel demand scenarios (which are in part a function of the duration of the COVID-19 Crisis) and airline market structure scenarios (shaped by, for example, airline failures, government intervention, and consolidation). Designing this process, and again leveraging digital tools to make the right tradeoffs, will be a major challenge that airlines will need to address as soon as possible. For example, customers who visit the AirAsia website for the first time receive recommendations for destinations and deals based on location and nearest airport. We also expect airlines to differ within each region in terms of financial health, probability of benefiting from government support, and both willingness and ability to participate in consolidation or fragmentation. Debilitated by COVID-19, airlines are preparing to cut more than 30,000 jobs as soon as next month. Nikita Das; November 21, 2020, 11:52 IST The recovery in ‘headline’ year-on-year growth stalled in November, as industry-wide cargo tonne-kilometres (CTKs) fell by 6.6% year-on-year. One is an extreme version that could play out in Europe and Asia if the crisis continues for longer than expected. Another opportunity: Mobile apps can give passengers the security of minimal exposure to surfaces during their flights. This data intelligence will be important to define and prioritize the right segments to target initially. Consumer purchase patterns and buying behavior have evolved just in the last 7 months with the context of the COVID pandemic. However, forecasts for the current crisis indicate that the duration and impact will be much more severe than any we’ve seen before. Airlines should also prepare for ramping up, once airports and countries reopen. Those steps are to detect the disruption, implement a plan, and execute the plan. The US is offering a rescue package for all carriers that comprises a mix of payroll grants and loans. Again, we must consider different duration scenarios. Our flight plan for the new normal must take these differences into account, especially when making network and fleet decisions, as well as planning for the initial rebound after markets reopen. Asian airlines fly nervously into post-COVID future ... in the teeth of a downturn and bet that the long-term trends still point to a region flying farther and more frequently. In addition, Amadeus has been advising airlines on how best to use system capabilities and products to manage disruption. For example, the American Airlines app can sync with Siri, Apple’s voice assistant, to let travelers check in, check flight status, determine travel time to the airport, and order food from airport restaurants to take on board. For example, we are tracking the spread of the virus by country and gauging the responses by governments, including the type and duration of travel restrictions and the specific conditions under which they might be relaxed. In Europe, for example, several airlines that are part of an airline group were in relatively strong health as the crisis started. Across all industries, most conversions still happen on the desktop. “Airlines can’t control disruptions, and COVID-19 has caused unparalleled and unanticipated disruptions across the entire airline ecosystem,” says Julie Hoffmann, global head of Industry Strategy & Marketing, Travel, Hospitality & Dining at Adobe. At Adobe, we believe that everyone deserves respect and equal treatment, and we also stand with the Black community against hate, intolerance and racism. For example, updating previous fare rules allowed travel agents and passengers to change tickets themselves, eliminating the need for manual involvement by the airline and lessening call center workload. Mobile will continue to play a critical in-trip role and also help to mitigate sanitation concerns. If a Lufthansa flight is cancelled and travelers need a hotel, the airline will send them a link so they can reserve a room online at the airline’s cost. In that scenario, the industry regresses with a drastic reduction in the number of airlines, leaving a number of national carriers (with government ownership) and only the strongest LCCs. Gain an insight into the airline industry's leading players. Here’s a look at those questions, how airlines answered them, and what insights can help organizations respond to today’s challenges and drive business objectives after COVID-19. (Compass Airlines is the first independent feeder to announce that it will cease operations; it will do so by April 7). The entire Adobe team wants to thank you, our customers, and all creators around the world for the work you do to keep us inspired during this difficult time. As a result, the industry may have to manage structural demand changes (such as the state of the economy—depression, recession, and rebound) and megatrends (such as the dramatic rise in remote working, more locally oriented supply chains, and a focus on sustainability). The “Key Trends in Airlines” report has been added to ResearchAndMarkets.com’s offering. If social distancing continues for an extended time, airlines may need to rely more on digital to replace high-touch experiences with low- or no-touch access. Boston Consulting Group is an Equal Opportunity Employer. Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. Their travelers can start browsing via the mobile web and then easily shift to desktop to put the finishing touches on their itineraries. Topics: Travel & Hospitality, Digital Transformation, COVID-19. What’s more, the time between developing and implementing the plan may be only a week or two—and will have to be accomplished despite the displacement of aircraft and staff. And flight prices will most certainly go down … unless they go up (more on this in a minute). While the future of passenger demand remains uncertain, the airlines that take this time to plan their return and embrace data-driven decisions and new digital opportunities, will set themselves up to emerge stronger as we come out of the pandemic. WASHINGTON, August 13, 2020 – A new analysis by Airlines for America (A4A) – the industry trade group representing major U.S. carriers – shows which states are experiencing the greatest impact on air service and air-travel demand amid the COVID-19 health crisis. “[It’s] the next step towards a 100% digital supported journey,” Becker wrote. by Digital Strategy and Industry Strategy. Long-haul leisure usually takes more time to plan, so it is likely to rebound more slowly. W hat will travel look like post-coronavirus? Today, we help clients with total transformation—inspiring complex change, enabling organizations to grow, building competitive advantage, and driving bottom-line impact. Technology . We expect that leading airline groups will be reviewing options, including potential divestitures and the sale or purchase of minority equity stakes. But during times of constraint, creativity often expands to meet existing and new needs. Understandably, the COVID-19 pandemic brought most travel to a halt, creating significant turbulence in the airline industry. Finally, of course, finance teams will need to be closely involved to protect cash levels, capture revenues as soon as possible, and delay cash-outs as much as possible. At the same time, airlines should consider M&A and consolidation opportunities. These companies are likely to receive government support because of their importance to the economy, and they could be the ones driving consolidation efforts. This work adds value that will remain well after the crisis is over. By marrying the trends airlines are seeing in online searches, such as destinations and dates, with data partnerships, including hotel searches and bookings, and also customer profiles, airlines can target these segments with the best experiences — destinations, packages, and promotions – in real time to drive passenger demand. Data from previous crises, such as the SARS epidemic and the events following 9/11, shows how long it has taken the industry historically to return to precrisis levels. Yet, mobile is still critical, with 83% growth in mobile Web traffic since 2016 versus a 10% drop for desktop, according to Adobe Digital Insights. Airline industry profits rose as they increased their load factor from 75% in 2005 to 85% in … Seven Trends That Are Reshaping How We'll Travel . Which airlines will survive, and what will they look like? For now, we are tracking five potential scenarios: one, at this point, seems highly unlikely to occur; the other four are all possible, with the prolonged U-shape being the most likely, in our view. We think that, in North America, there will likely be different outcomes for a wide variety of airlines—large network carriers (such as Delta Air Lines, United Airlines, and American Airlines), nationwide LCCs, smaller airlines, and independent feeders. The airline industry will wear the scars of the coronavirus pandemic for a very long time and it's hard to predict how it will change the way we travel, writes Volodymyr Bilotkach. Overhead luggage space might actually be available. “That lets airlines deliver best-in-class experiences, capture optimal value, and elevate capabilities going forward.”. Therefore, we propose a data-driven, action-oriented, and digitally supported “flight plan” to help airlines emerge stronger from the COVID-19 crisis. For example, it might be challenging to encourage governments to invest in airlines that are based in other countries—such as carriers that are part of airline groups. This creativity could set the stage for the future of travel. These partnerships – whether for marketing purposes or operations – can enable airlines, hotels, tour operators, and others to redefine the new normal for travel together and build stronger customer relationships. With Covid-19, we saw massive change in a short period of time. For short-haul, we expect that many passengers will want to get away on trips after being housebound for weeks or months, once they are reassured that flying and traveling are safe again. Download this report as a PDF. “We received very positive feedback from our customers and the industry at large,” Al Zamani told The Jakarta Post on Nov. 26. This comprehensive, data-driven analysis of 20 global airlines uncovered five top-of-mind questions among airline executives charged with accelerating their companies’ digital transformations. We believe Adobe has a responsibility to drive change and ensure that every individual feels a sense of belonging and inclusion. Hotels are now tailoring their marketing efforts to identify this need gap and deliver bullseye on the lacuna created. SMITH BRAIN TRUST – There’s no question about it: Travelers just aren’t flying as much as they used to. More than half of U.S. Internet users (54%) approve of how airlines have handled the COVID-19 outbreak, according to GlobalWebIndex. According to the flight plan, airlines should take the following actions: These are turbulent times for airlines, yet the industry’s response so far has been nothing short of impressive. Other airlines, including Delta, are responding to their increasingly savvy loyalty customers by streamlining mobile processes to let them book a flight in just one click. Logistics . To benefit from all of that data, airlines on the forefront are investing in data warehouses and data lake repositories. We will continue to support, elevate, and amplify diverse voices through our community of employees, creatives, customers and partners. Customer experience is the sum of each micro-experience that consumers have with a company. The required foundation rests on three pillars: Airlines should assess current digital capabilities, ensure their teams are fully adopting the tools they have, and invest in the necessary technology that the don’t — supported by a service-centric operating model — to drive meaningful customer relationships. Needless to say, the airline industry is having a watershed moment. Relevancy is not the only driver for exceptional experiences; they also need to be smooth and frictionless – and, as much as possible, contactless in the physical world. Airlines should also ensure that data is integrated across channels for a seamless experience. The Technology Vision report covers five other trends impacting the industry in the years to come. The airline industry has been hit extremely hard by the COVID-19 crisis—even harder, perhaps, than by the events of 9/11 and the 2008 global financial crisis put together. 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