- Tickets – can we live without them?As a traveller, the ticket has always served as something tangible to hold on to as an entitlement to travel (until this was replaced by the electronic ticket, at least!). However, as the world has become more digital, airline passengers have become accustomed to electronic tickets, and of course there are many “ticketless” airlines now, using receipts as confirmation of the entitlement to travel. Behind the scenes, however, many of these “ticketless” transactions are not really this at all, with tickets still being issued in the airline’s reservation system. The shift towards orders may be helping airlines to think (and act) more like retailers. But this has not yet taken away any of the legacy complexity behind the scenes. There is a catch-22 situation for most airlines: tickets cannot be eliminated due to the many dependencies on them still in legacy systems, however the legacy dependencies cannot be eliminated while tickets are still so prevalent.
- Dipping your feet in customer segmentationAlthough there has been a lot of talk about customer segmentation and personalisation, there is little evidence that airlines are actually applying any sophisticated level of personalisation or segmentation. But applying fine-grained customer segmentation can increase airlines’ revenue, both by increasing conversion and by upselling products to the customer, thus getting just that little bit more of the customer’s wallet share. In consumer retail, estimates and past research show that revenues can be increased by up to 3% to 5% using segmentation and creating tailored offers. Additionally, it is safe to assume that applying smart segmentation can improve customer satisfaction by showing the customer more relevant content. But there are several hurdles to overcome for airlines.
- At the crossroads: remaining on traditional PSS or entering the brave new world of airline retail?As the pandemic seems to be over, the experience of the past two years has shown that customer service and the need for additional revenue streams are essential for airlines. Thus, a flood of engagements in airline customer centricity, customer servicing and airline retailing are currently underway. Airlines often hit reality when identifying that their current Passenger Service System represents a bottleneck, as they are very often built around a trip and do not focus on customer-centric servicing. Modern Offer and Order Management Systems can close these gaps, but as they are in most cases dependent on a PSS, they are also limited by them. The target for airlines thinking about renewing or changing PSS is to secure the best of both worlds: to remain on a legacy solution at least temporarily, while preparing to embark on their customer-centric retailing journey. But there are some items to consider.
Travel Industry Strategy and Solution Consulting
Your needs are our guidelines. Travel in Motion GmbH, travel industry consulting, will find the ideal model to work with you and provide you the support you require.
We focus on eCommerce, IATA NDC, distribution, revenue management, mobility and customer experience related travel topics. We can support you in creating business strategies, and translate those into business solutions.
Travel in Motion will accompany you from ideation to strategy creation, from business process modeling to requirements definition and finally from solution definition to vendor selection.
What we do
Travel in Motion currently has about 40 clients across the globe. Our customers range from airlines of various sizes to PSS providers, travel ecommerce vendors, travel IT vendors, travel start-ups and payment providers. With travel industry consulting, we serve airlines, small and midsize IT companies and multinational corporations in the travel industry. We are privileged to count industry organisations such as IATA to our customer base as well.
Our current work ranges from developing sales and business development strategies to solution design reviews, from one day workshops to longterm strategy engagements, driving airline IT strategies and airline NDC roadmaps to competitive benchmarks amongst industry players. We support airlines in defining NDC and merchandising strategies and market roll-out plans, and support them in the execution. We are at the forefront of the IATA ONE Order concepts, both from an industry perspective as well as looking at possible transitions with customer airlines.
We support vendors in M&A discussions and contract negotiations. We conduct benchmarks of airline eCommerce vendors’ capabilities and market perception. We support leading global IT vendors in business development and business strategy in relation to travel and transportation market and helped with new product definition and market validation.
We facilitate workshops for airlines, vendors and have done so for the leading airline industry governing body organisation, supporting organisations in defining programme scope and activities.
We moderate panels and facilitate discussions as a neutral third party.
Finally, in between all this work, we also author reports on NDC, ONE Order and future industry direction for various clients.
We’d love to support your company’s growth and success with our expertise and experience.