The Challenges for Aviation industry from Always-On Customers!

The aviation industry has been facing a wave of challenges in face of evolving technology, especially from the digital technology. Three eminent challenges that are threatening to loosen the bond between the aviation industry and their customers include: swinging customers’ behavior, changing direct and indirect sales channels, and last but not the least the evolution of digital technology.

Today, the consumers are increasingly relying on online channels using multiple devices (mobile and desktop included) and social media platforms for search and booking. In order to counter this rise of digital technology across the sales channels, the aviation industry has to undertake a technology-driven holistic strategy.

Firstly, the industry is in dire need to transform and correct the travel distribution model that includes direct as well as indirect sales channels. Secondly, they are required to engage in close collaboration with all relevant technology players. Lastly, they would have to increase their internal capacity including the technology updates, effective operational models, and efficient processes, to be able to grab on new opportunities and be able to make customer-centric policies. To sum it up, the aviation industry will have to up-the-ante in digital innovation and improvise the digital technology to enhance the direct channel sales.

The Evolving Aviation Customers:

It is the call of the hour for airlines to increase their grasp of changing consumers’ behavior across the retail as well as corporate sectors.

Tracing the Digital (Always-On) Customers Trends:

Although there is a varied behavior in digital customers’ behavior across geographies, some key indicators that can be traced globally include:

-        The importance of online channels by retail consumers’ for search and booking

-        Use of multiple devices (mobile and desktop) for research and booking

-        The increasing significance of social media platforms as direct communication channels for customers’ feedback and its subsequent translation in decision-making processes

1.    Increased reliance on online sales channels

Amongst the most mature markets of the aviation industry (namely North America and Western Europe) customers increasingly rely on online travel agents and search engine queries for online purchases. For such a mature market, the online sale channels account for nearly 90% of all sales. However, this ratio is lower for growing or maturing countries like India and Pakistan; mainly due to the market characterization that includes low penetration of internet, low banking penetration (credit cards, debit cards etc.) and security concerns with respect to online transactions. (for instance, the South Asian region).

2.    Use of multiple mobile and desktop devices for purchases

Mobile queries have sky-rocketed in the past few years and it’s only going to get more competitive in coming years. However, mobile devices aren’t alone in the race and there is an equally large and tempting market segment relying on desktop devices to make purchases. TO make things even more complicated, the use of multiple mobile devices like smartphones and tablets means the aviation industry needs to chalk-out a robust and holistic approach that’s backed by technology. Moreover, cross-platform integration is also enabling customers to take-on their research from where they left, which is still widely a segment unaddressed by a majority of aviation industry players.

3.    The Rise of Social Media Platforms

Social media platforms have become the story and experience sharing platforms for customers. Again, customers rely on multiple devices to share their experiences and make queries over social media platforms.

Interestingly, the trend of sharing experiences and making queries on social media platforms is stronger in emerging markets against the mature markets. This is primarily because of a younger and tech-savvy customer base that’s highly engaged with social media. Chinese, Brazilian and Russians customers, for instance, are more inclined to share their travel experience on social media as compared to travelers from mature markets of North America and Western Europe. Global travelers, especially from emerging markets, are distinctly relying on this first-hand and unbiased information on social media to plan and make purchases. Thereby, it is imperative for aviation industry players to get more active over social media platforms and interact directly with customers’ while undertaking the suggestions shared on those platforms for decision-making policies.

Abdul Aziz Lang