Data the Fuel of the 21st Century
The airline industry is in the calm eye of an escalating storm of disruption. For 70 years a buffer of artificial constraints has protected it, but that’s about to change.
The past decade has seen major disruptions in travel, with the advent of start-ups such as Uber and Airbnb. The retail, music, entertainment and banking industries have all been disrupted and forced to transform. Disruption is booming, with one notable exception: air travel.
Start-ups with simple, yet sophisticated, IT solutions are unencumbered by the massive capital investment or government restrictions that hamper legacy industries. And while the airline industry has had to accommodate an influx of disruptive low cost carriers, large legacy operators remain mostly unchanged.
The two major areas of impact for airlines will be selling tickets and the regulation of flying. Consumer empowerment, driven by advances in technology, will transform the process of buying and selling tickets. At the same time Asia – particularly China as it expands its global presence – will be the biggest disruptor in the area of ownership and control as its growth fuels innovation.
Low cost carriers in Asia Pacific are innovating to push the boundary of ownership and control rules by expanding their brands across borders through joint ventures.
There are more young and leisure travellers than ever before, and they expect to plan and manage their travel via a mobile device. Airlines need to invest in improving the mobile customer experience.
Airlines need to invest in the consumer experience. After all, empowered consumers drive the greatest disruptions.
Read the full insight to find out more.
