AVIAPRO CONSULTING BLOG

 

Digitalization; Elevating Customer Service

28 December 2023

Elevating customer service has become a cornerstone for businesses in the tourism sector, particularly commercial airlines, as they vie for a competitive edge. The global corporate competition within the burgeoning aviation sector has intensified, driven by technological innovations that have the potential to reshape operational paradigms. One such transformative force propelled by essential business strategies is digitalization, colloquially termed digital transformation, an emerging cultural phenomenon giving rise to new business models. Digital transformation, an intricate concept, finds its foundation in digital technology and customer experience as its two pillars. It can be defined as the process by which technology modifies the business environment to alter partners', employees', and customers' expectations.

Despite the impetus for change, airlines, constrained by modest profit margins, grapple with transitioning from traditional to cutting-edge systems. This challenge is exacerbated by the overemphasis and undervaluation of customer-centricity in the industry necessitating a critical evaluation of shortcomings and a strategic approach to address them.

As a testament to the industry's commitment to digital transformation, a substantial 35% of airports and 58% of airlines have already implemented digital strategies, marking the prevalence of this transformative trend. The aviation sector, now at the forefront of the digital age, is navigating this transformational journey, leveraging technology to redefine operational paradigms, enhance customer experiences, and fortify its position in the face of intense competition.

What are Digital Transformation Technologies?

As per the DESI index (The Digital Economy and Society Index) released by the European Commission in 2022, the principal digital transformation technologies are:

What are the factors that are driving the airline industry’s digital transformation? Major benefits arising:

1. Operational costs: Airline companies grapple with substantial overhead expenses, encompassing the challenges of hiring and retaining a skilled workforce, investing in research and development, and acquiring aircraft. Additionally, they must contend with unpredictable factors like fuel price fluctuations and flight delays. Despite these challenges, digital transformation emerges as a catalyst for augmenting revenue streams, offering a viable path for sustaining a successful business even in the face of difficult-to-cut costs. Through the adoption of new technologies, artificial intelligence (AI), and Internet of Things (IoT)-driven solutions, airlines can effectively trim costs related to distribution, ticket issuance, and reconciliation. This technological advancement not only streamlines operational processes but also facilitates the rapid collection of passenger insights, enabling businesses to swiftly adapt to ever-changing needs in the dynamic aviation landscape.
2. Security & Safety: In the aviation industry, the imperatives of security and safety are indispensable for the very existence and operation of airlines. Recognizing this, significant investments are directed towards these pivotal components. Given the ubiquitous nature of airline websites, where users share personal information for ticketing and flight check-ins, the primary focus revolves around ensuring secure transactions and safeguarding sensitive personal data. To effectively achieve these goals, airlines employ digital processes, automations, and AI technology. Furthermore, embracing augmented reality (AR) holds potential for enhancing passenger safety through its application in preventative and corrective maintenance procedures for aircraft.
3. Competition: The aviation sector  witnessed over 3.8 billion air travelers in 2022, as reported by the IATA Quarterly Air Transport Chartbook. With the addition of 39 newly established airlines in 2022, as highlighted by the IATA in 2023, the industry is compelled to adopt digital strategies and leverage new technologies for a competitive edge amidst the intense competition. The formation of alliances in the aviation sector is a deliberate effort to channel collective endeavors towards enhancing consumer happiness.

How are the customer centric strategies incorporated within Digital Transformation?

Modern travelers seek absolute control over their journeys, craving instantaneous information, personalized services, secure transactions, and the convenience of swift access to a plethora of travel-related services. Airlines, recognizing the shift in attitudes, have placed customer satisfaction at the forefront of their priorities. In response to this demand for autonomy, digital services empowering users with self-management have gained significant popularity.

From online check-ins to flight rebooking, digital offerings have liberated travelers from cumbersome processes, aligning seamlessly with their goal of uninterrupted travel. In-flight digital amenities such as internet access and entertainment platforms further contribute to a positive passenger experience, influencing their likelihood to choose the same airline in the future.

The surge in mobile applications developed by airlines allows customers to instantaneously book flights, access comprehensive flight information, receive updates on new destinations, and benefit from special deals. Loyalty programs, facilitated through these apps, create a bond between customers and airlines, enhancing customer satisfaction and loyalty (A & Ermagun, 2018). Social media presence serves as a valuable tool for airlines to gather crucial information about their customers, enabling them to tailor strategies, develop customized offerings, and ultimately enhance customer happiness and loyalty.

Investments in technology are not only enhancing the traveler’s experience but also reinforcing security and safety measures. Stricter screening practices ensure passengers travel in safety, mirroring the user-friendliness and efficiency that customers expect. Cutting-edge software unifies global airline processes, streamlining manufacturing, maintenance, and operations with enhanced oversight, process compliance, communications, and real-time data.

This customer-centric and efficient shift, fueled by digital transformation, extends beyond airlines to impact airports. A report from “Markets-and-Markets” estimates that the market for smart airports will grow from $14.9 billion in 2020 to $22.6 billion by 2025, signaling a profound transformation in enhancing the traveler experience.

The intersection of digital and customer focus

True magic happens at the intersection of digital transformation and customer-centricity. By harnessing technology, airlines and airports can create tailored experiences that resonate with passengers. Mobile apps, self-service kiosks, and contactless solutions are no longer novelties but essential components of a traveler-centric ecosystem. 

Modern travelers yearn for control, instant information, and personalized services. Airlines, attuned to this shift, prioritize customer satisfaction by integrating user-centric digital services. From streamlined online check-ins to in-flight digital amenities and mobile applications, passengers now experience unprecedented autonomy. Loyalty programs and strategic social media engagement further enhance satisfaction and loyalty. Technological investments not only refine the traveler’s experience but fortify security measures. This customer-centric shift extends beyond airlines, influencing airports and contributing to the significant growth of the smart airport market. 

AviaPro stands at the forefront of this evolution, collaborating with industry leaders to integrate cutting-edge technologies. At the intersection of digital transformation and customer-centricity, personalized digital experiences, seamless omnichannel engagement, and contactless solutions redefine the aviation landscape. Predictive analytics anticipate passenger needs, enhanced communication fosters engagement, and operational efficiency ensures timely services. AviaPro is dedicated to shaping this transformative journey, where the fusion of technology and customer focus propels the aviation industry into a new era of passenger experiences.

How can AviaPro help you in your digital Transformation Journey?

Embark on a transformative journey with AviaPro, your strategic partner in navigating the complex skies of digital and customer-centric evolution. As industry pioneers, we specialize in providing comprehensive consultation and implementation services to redefine your aviation landscape. Our seasoned experts collaborate with airlines and airports to craft and execute effective digital strategies that seamlessly intertwine with customer-centric principles. From personalized passenger experiences to cutting-edge digital solutions, AviaPro stands at the forefront, ensuring your organization not only adapts but leads in this era of innovation. Elevate your operations, enhance customer satisfaction, and future-proof your aviation venture with AviaPro's tailored services. 

In the swiftly evolving landscape of the aviation industry, stagnation is not an option for airlines. To stay relevant, they must align with the escalating desires and expectations of passengers in a digital era that shows no signs of reverting. The digital realm is not a transient movement; it is an imperative action that demands adaptation.

Let us be your wings in shaping an aviation future where technology and passenger-centricity converge for unparalleled success. Choose AviaPro, where every strategy takes flight.

 

Contact us at info@aviaproconsulting.com, or visit our consulting services page for more information and to help you with your aviation challenges.

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