AMADEUS: Airlines to boost tech investment for retailing

Both full service and low-cost airlines are digitally transforming, with carriers planning to increase investment in technology by an average of 13% in 2024, according to Travel Technology Investment Trends, a new study commissioned by Amadeus. Data shows carriers are optimistic about the move to ‘modern retailing’, which sees airlines adopt a completely new generation of technology to create personalised offers and administer them using a single order record. A large number of airlines are already taking action, with a third planning to implement new technology for offer creation and order management during 2024 and a further 50% intending to implement such technology over the coming five years. Around 40% of airlines surveyed have already hired additional IT talent and put both business plans and business process plans in place, with almost all remaining airlines currently working on those tasks. According to the study, the vast majority of airlines plan a ‘gradual shift’ to new Offer & Order management technology over the coming years, with 58% of airlines surveyed intending to implement the new model across existing interline partnerships as a first step. 44% said they would begin by gradually implementing Offer & Order across the airline’s own digital channels first. However, roughly a third of airlines are planning a ‘big bang’ or ‘one-off’ switch to Offer & Order across all sales channels when those channels become ready. Status Strategic business plan in place Business process transition plan Hiring talent to undertake transition IT services relationships to undertake transition Not yet started 4% 12% 10% 16% In progress 52% 48% 48% 44% Already implemented 44% 40% 42% 40% Status of airlines’ preparations for the transition to modern retailing In addition to packaging compelling offers, the move to modern retailing also sees airlines improve how they ‘deliver’ for passengers at the airport. According to senior airline leaders, ‘improving the airport experience’ tops their list of technology priorities, with 65% of airlines planning to enable this by rolling-out biometrics at key service points like check-in, bag-drop and boarding over the next three years. What’s your airline’s top technology priority? All airlines FSCs LCCs Improving the passenger experience at the airport (e.g. using self-service and biometrics) 41% 44% 38% Delivering an outstanding traveler experience across the entire journey 39% 44% 34% Modernising your airline’s approach to network management 39% 28% 50% Automating customer service (e.g. allowing passengers to self-serve ticket changes) 36% 42% 30% Modernising your airline’s approach to revenue management 34% 34% 34% Airlines’ top five technology priorities identified from a longer list of 13 options Cyril Tetaz, executive vice president, Airline Solutions, Amadeus said: “These findings match our own experience. Several Amadeus customers have firmly committed to digitally transforming their entire operation with new retailing technology. Doing so is helping airlines become customer and data driven so they can better understand passengers and deliver a truly traveler-centric experience. We’re ramping up our investments to support these trends. It’s an exciting moment for airlines and their passengers.” “Our data shows two-thirds of LCCs plan to increase investment in technology. Interestingly, the top drivers are ‘innovation’ and ‘revenue increase’ rather than cost reduction. While many LCCs already operate with Offer and Order style technology, the broader shift across the industry presents opportunities. For example, more than half of LCCs told us they plan to interline with traditional airlines when those carriers make the switch to new retailing technology” added Dave Evans, CEO at Navitaire. For Editorial Inquiries Contact: Editor Matt Driskill at [email protected] For Advertising Inquiries Contact: Head of Sales Kay Rolland at [email protected]