Decline in global crude oil prices, coupled with increased spending by corporate entities on air travel, has completely changed the way in which the global air travel industry functions today. As air travel is the fastest mode of transportation, it is widely used for personal, professional, and commercial purposes. The air travel industry has benefited greatly from globalization and the increased purchasing power of those in emerging economies. According to analysts at Technavio, the global air travel services market will record a CAGR of around 4% by 2020.
Latest trends in the air travel service market
Investments in business intelligence solutions
More and more airline companies are allocating funds for the development of business intelligence solutions. These solutions help improve operational efficiency by providing customer insights, monetizing data, and enabling risk management. Predictive analysis tools in particular are being used by airlines for effective demand forecasts. Not only is the productivity of airlines improved, but these tools also allow airlines to offer personalized alerts for corporate travelers.
Adoption of web-based solutions
In order to increase the ticket sales and provide the best travel services for their passengers, airline companies are now using advanced web-based technological solutions. This allows them to set a high standard for travel, so that they can obtain loyal customers and keep up with their competitors. One example of an excellent web-based solution is AeroCRS, a cloud based system that allows air service providers to gain complete visibility of airline operations.
High competition between traditional carriers and low-cost airlines
With the emergence of several low-cost airlines, the global air travel market is experiencing tough competition and attempts are being made by both parties to win over the loyalty of travelers. Though there is no denying that almost 85% of the air travel market share is held by traditional carriers, low-cost airlines are gradually making their mark. The result is that a good number of traditional carriers have released their own set of low-cost carriers with minimal frills.
Increased spending on marketing and advertising and focus on customer preferences
Marketing and advertising, when conducted in the right manner, can go a long way in building the reputation and brand value of an airline company. And with low service differentiation in the market, air travel service providers have increased their spending on this front. Today, the focus is no longer simply about providing the quickest and safest travel service; air travel service providers are working on providing highly customized services for their passengers. This is achieved by regularly obtaining feedback and using social media to more deeply understand customer preferences.
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