The ever-changing travel landscape requires airlines to adapt their solutions to the need of their customers. The customers dictate the terms and airlines need to follow in order to maintain their competitive edge. That is why we have highlighted the top 5 travel trends for airlines in 2019.
1. Diversification of Revenue
A very important lesson in any business is not to put all your eggs in one basket. What does this mean? Well, simply put, you should avoid focusing on one income stream. The consequences can be catastrophic if that stream ceases to exist. Multiple revenue streams are paramount to financial success. By diversifying your revenue, you are creating a safety net for your business and making it less vulnerable.
2. Increased Demand for Tech Solutions
Tech solutions give airlines the luxury of not working harder, but rather working smarter. Tech solutions can help airlines become more efficient, more organised and create a superior platform that engages the consumers. All of this highlights the importance of platforms for services like ancillary sales, passenger data management, and payments as well as why they are in high demand.
3. Collaborate with Other Organizations
In order to stay competitive, airlines need to create a great passenger experience. It is becoming increasingly popular for airlines to collaborate with other companies in the travel industry, such as hotels, amusement parks, and tour guides. A win-win-win where airlines increase sales, hotels fill up their rooms, and travellers get a smooth booking experience. This is a great example of a second revenue stream.
4. Environment-Friendly Ideals
With a huge focus on the global environment, it is a smart move (both environmentally and economically), to promote environment-friendly practices and initiatives. Millennial travellers tend to be very value-driven when buy products and services. Thus, doing something as simples as removing plastic products from the flights could have a significant effect on the millennial community. It will also have a positive impact on the company’s image.
5. Value for Money Considerations
The final trend is a big one, namely value for money considerations. A majority of today’s travellers want to customise their own trips. Travellers are willing to pay well for things they want, but do not want to get charged for add-ons they are not interested in. “Less is more” has never been truer. One lesson is to keep ticket prices fairly low and adding value besides the seat on the flight. Not everyone feels the need to relax in a lounge or bring 23kg luggage. On top of that, ancillary sales will naturally increase.