The passenger has gone digital and mobile

Description

Information and technology are changing passenger behavior and passenger expectations as well as employee and shareholder expectations. Passengers now have richer and timelier information, enabled by digital, mobile, and social technology. They are now empowered, for example, by not only price-service comparison websites, but also user-centric rating websites. Passengers now want to be in control and expect airlines to become solution providers and aggregators of value to provide much more personalized services and better travel experiences across the travel cycle. Airline employees expect to be given informationand technology-enabled tools to do their jobs to meet passenger expectations by accessing and acting upon real-time information. Shareholders expect returns that are reasonable and relatively stable through business cycles. Airlines can now use insightful information and enabling technologies to target more intelligent segments of the passenger base and serve each selected segment with profitable price-service options. These passenger, employee, and shareholder expectations can be met by airline managements through further innovation of business models that start with an increasing focus on customer centricity (from operation and product centricity), followed by a better understanding of newer customer segments—maturing sub-segments in North America and Europe, growing middle classes in Asia and Latin America, and the divertible segments from trains and buses in countries such as India and Mexico. Next, the evolving business models need to focus more on different price-service option packages for strategically-selected segments while minimizing the complexity and costs of producing and delivering cost-effective services for these segments. Cover......Page 1 Contents......Page 6 List of Figures......Page 10 Preface......Page 12 Foreword by Akbar Al Baker, Chief Executive Officer, Qater Airways......Page 16 Foreword by Eric R. Conrad, IBM Travel & Transportation Global Industry Leader, Global Business......Page 18 Foreword by Constantino de Oliveira Jr., Chief Executive Officer, GOL Linhas Aéreas Intelgentes......Page 22 Foreword by Tewolde GebreMariam, Chief Executive Officer, Ethiopian Airlines......Page 26 Foreword by Henry H. Harteveldt, Vice President, Principal Analyst, Airline and Travel Research, For......Page 32 Foreword by Peter Hartman, Chief Executive Officer, KLM Royal Dutch Airlines......Page 36 Foreword by Dr. Christoph Klingenberg, Senior Vice President, Information Management and Chief......Page 38 Foreword by Tan Sri Dr. Munir Majid, Chairman, Malaysia Airlines......Page 42 Foreword by David Neeleman, Chairman, Azul Brazilian Airlines......Page 44 Foreword by Azran Osman-Rani, Chief Executive Officer, AirAsia X......Page 48 Foreword by Greg Schulze, Senior Vice President, Global Tour and Transport, Expedia Inc.......Page 50 Foreword by Francesco Violante, Chief Executive Officer, SITA......Page 54 Acknowledgements......Page 60 Introduction......Page 62 1 Creating Information-Driven and Technology-Enabled Solutions for Airlines and Passengers......Page 72 Mass Customization......Page 73 Solution Orientation......Page 78 Management of Complexity......Page 85 Capitalizing on Information and Technology......Page 91 Notes......Page 93 2 Game-Changing Technologies for Airline Business Models......Page 94 Harnessing the Internet: Leveraging Game-Changing Applications......Page 95 Integrated and Close to Real-Time Airline Planning......Page 120 Takeaways......Page 125 Notes......Page 126 3 Current Information- and Technology-Enabled Initiatives......Page 130 Reducing Costs and Improving Passenger Experience......Page 136 Embracing Social Media......Page 145 Context-Aware and Location-Based Mobile Applications......Page 149 Where Do We Go From Here?......Page 152 Notes......Page 156 4 Potential Information- and Technology-Driven Initiatives......Page 160 Passenger Segmentation......Page 161 Passenger Relationship Management......Page 167 Passenger Loyalty......Page 172 Flawless Passenger Experience......Page 176 Examples of Best Global Business Practices......Page 185 What is Next in Air Travel Distribution?......Page 187 Takeaways......Page 189 Notes......Page 190 5 Hurdles in Implementing New Enabling Technologies......Page 194 Why Are There Hurdles?......Page 195 What Are the Hurdles?......Page 197 Takeaways......Page 207 Notes......Page 208 6 Opportunities for Overcoming Hurdles......Page 210 Information Strategy......Page 212 Points of Integration......Page 217 Technology Strategy......Page 221 Business Strategy......Page 230 Takeaways......Page 237 Notes......Page 238 7 Preparing for Competitive Renewal Opportunities......Page 240 Notes......Page 252 Appendix BSI: Teradata Webisode: The Case of the Mis-Connecting Passengers......Page 254 Index......Page 262 About the Author......Page 268