Global airlines urgently need to enhance retailing efforts, reveals survey.
New ‘State of Airline Retailing’ report uncovers critical areas for improvement in the industry, emphasising customer experience and technology innovation
• For further insights and to download the full report, visit https://www.meili.travel/insights
Main findings:
• No respondent believes airlines are doing a very good job at retailing
• 62% of airlines are not using an Offer and Order system
• 25% offer Wallet as a payment service
• 64% are unable to sell airline partner ancillaries.
Monday, 5th June 2023, Dublin Ireland. A new survey has suggested that there is an urgent need for improvement in the ancillary efforts of airlines across the globe. The survey results, conducted among of 105 global airline respondents, were presented as part of the latest “State of Airline Retailing” produced by LeapShift and sponsored by travel tech company Meili.
Notably, none of the survey respondents expressed the belief that airlines were doing a “very good job” at retailing, and just 14% of participants stated that airlines were doing a “good job”. The majority of respondents revealed that the airline they worked for neither utilised an Offer and Order Management System, nor the ability to sell airline partner ancillaries.
ADVERTISEMENT
The survey highlighted that airlines are concentrating their efforts on leveraging the customer experience to drive revenues. Almost half (47%) of respondents indicated that they are using their loyalty program to create personalised offers to customers.
Furthermore, approximately half of respondents indicated that they are using dynamic pricing for seats and bags, and with an additional 34% stating their intentions to introduce this pricing approach in the near future.
Among the airline challenges identified by respondents were:
• Interaction between different systems
• Servicing changes and refunds
• Dynamic bundling of products and services.
Mike McGearty, CEO of Meili, said: “The survey results clearly demonstrate the urgent need for airlines to prioritise enhancing the customer experience and elevating their ancillary efforts. While there has been some progress, there is still significant room for improvement in this critical space. It is vital for airlines to recognise the added benefits that direct service provider relationships can bring to their customers, particularly in terms of merging and enhancing loyalty benefits. For example, integrating loyalty programmes with car rental companies can further enhance the customer experience. By harnessing cutting-edge technology available in the marketplace, airlines can successfully deliver the superior and frictionless experience that customers demand and deserve.”
The author of the report, Ann Cederhall, Travel Technology Strategist and Educator with LeapShift, said: “The opportunity that airlines have to create amazing customer experiences and lifelong loyal customers is so unbelievably huge that I believe we’re on the cusp of a massive airline industry transformation that will put the customer front and centre once again.”
More information can be found at www.meili.travel