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The travel industry is at a crossroad and the traveler journey is about to change significantly. We continue to track how the industry and our customers are evolving so that we can react quickly to the changes and help guide the best way forward. While it’s difficult to predict the future, we have identified six key areas to support our airline customers towards recovery.
Helping airlines rebuild a profitable network. As airlines prepare for recovery they need to determine when, where and how to restart operations. This is especially challenging in a rapidly changing environment with no reliable historical data at hand. Carriers will face questions such as how to manage their network and how to rebuild from a blank sheet.
Boosting revenue and demand generation. Sales have to be simplified to maximize revenues and drive demand. Airlines are offering more flexible fares to encourage passengers to book despite the uncertainty. To encourage travel, many airlines are using promotions (points sales, upgrades, etc.), subscription models and loyalty schemes to improve cash flow while adapting to new market realities.
Planning for the future with increased health and safety restrictions. Observing national and environmental health regulations is key for travel to restart. We are working with Accenture’s government arm to prevent the creation of many different national solutions which make it harder for airlines to comply. Meanwhile, health restrictions are changing daily; with ongoing discussions on health passports, sanitation rules and route obligations.
Evolving the customer experience to rebuild travel confidence. Consumer behavior and travel patterns are shifting. This change requires airlines to focus on rebuilding traveler loyalty and passenger trust. The challenge is to keep existing passengers informed and engaged with the carrier. To achieve this, airlines are showing their creativity; some airlines are donating miles to charity which provides tier points, while others are donating miles to frontline workers for a much-needed break. Proactive communication on how to keep passengers safe is also going to be vital. According to an APEX survey, the themes causing the most negative passenger sentiment include difficulty finding COVID-19 information, food inspection and sanitary efforts such as deep cleans at turnaround.
Re-engaging employees, key to airline recovery. Working practices must evolve so employees can work effectively in line with governmental and safety requirements. Technology can help here too. For example, with Amadeus’ Mobile Companion App, agents aren’t tied to the desk but can use a hand-held device to service customers from a safe distance. To prepare staff for the return to work, airlines are focusing on trainings, and getting safety measures in place, including protection equipment and health-checks for frontline airline staff. At Amadeus, smart working is the new norm; we access tools to run the business from home and have implemented virtual trainings to interact efficiently with our airline customers.
Making operations more flexible. Last but not least, airlines are focusing on flexible operations. As airlines start to recover, a more digital approach to operations is necessary, to reduce costs and human interaction. This will make scalable self-service essential; biometric technology will enable a lot of these activities, including a touchless airport experience. Social distancing impacts the airport experience beyond self-service. It includes changes to boarding, social spacing, handling queues and back-boarding of aircraft.
As we continue to navigate COVID-19 and prepare for the future, collaboration with our customers and partners is central to recovery and for travel to pick up again. You can read examples of how we are helping airlines through the current environment in previous blog posts fromJulia Sattel, our President of Airlines, andChristophe Bousquet, our SVP of Airlines R&D. We are also working with governments and the industry, as we have done over the last three decades, to power and support them through these challenging times.
For additional information on this topic, have a look at our webinar,Supporting airlines in a COVID-19 world.
Stay tuned formore storiesaround these six key areas for the recovery of aviation as we continue the conversation in the weeks and months ahead.
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