Travel Industry News at TravelNewsAsia.com since 1997. Interviews, podcasts, videos, pictures and more
Fri, 2 April 2021

Airlines: A Path Back to Profitability

(02 Apr 2021) Accelya has published 'Airlines: A Path Back to Profitability a research-based assessment and report of commerce and retailing challenges and opportunities facing airlines today.

The report is the culmination of a study conducted by Atmosphere Research Group an independent, strategic market research and advisory firm focused on the travel industry for the Air Transformation Lab, which Accelya launched in September 2020 to explore the current state of airline commerce and uncover perspectives on a profitable future for the airline industry.

The report provides a sobering acknowledgment of the severity of the crisis according to airline executives, with 79% viewing the pandemic as the most challenging moment in their careers. In contrast, the report also notes that almost all airline professionals participating in the study (96%) believe the crisis has created opportunities for positive transformations to their business, particularly in the areas of commercial processes, commerce, and retailing technologies. 89% of airline executives believe the crisis will fundamentally change how their airlines do business over the next five years.

Singapore Airlines Airbus A350-900 reg: 9V-SMH. Picture by Steven Howard of TravelNewsAsia.com Click to enlarge.

Among the findings are insights on the advantages of being leaner, less siloed organizations the result of organizations being trimmed due to the pandemic. In particular, airlines are inherently better positioned to innovate, which will play a key role when business recovery begins.

For example, although just 26% of executives considered merchandising/retailing to be extremely important pre-pandemic, 49% believe it will matter more during business recovery. The importance of innovation in offer personalization grew nearly 160% (from 19% to 49%) when comparing pre-pandemic perspectives to current views on business recovery.

In addition, 18% more executives view innovation in dynamic/continuous pricing to be extremely important during business recovery compared to before the pandemic (from 33% to 39%).

We view 2020 as the lost year for airlines, but far from being discouraged, we see airline leaders ready to make big, bold, and even unconventional moves to get back on track," said Henry Harteveldt, President of Atmosphere Research Group. Those airlines that are wise enough to take reasonable risks will be best positioned to advance their commerce and retailing and ultimately return to sustained profitability.

The report highlights direct customer relationships, dynamic commerce, and data-driven retailing as high-potential strategies for revenue growth:

- By 2023, airlines direct channels (digital and offline) will account for 56% of bookings a 12% increase in just three years, and NDC will play a central role. Airlines that plan to use NDC (31%) have already negotiated agreements with some or all of their GDS partners to sell NDC content (flights and ancillary offers).

- Dynamic and continuous pricing is the third most crucial revenue management priority for airlines after accurate demand forecasting and total offer management.

- 44% of airlines viewed data insights as extremely important to their strategic efforts prior to the pandemic. That viewpoint increases to 64% as airlines prepare for business recovery. However, a worrying point of note is that nearly half of all airlines surveyed (47%) believe inadequate data will keep them from fulfilling their visions of dynamically priced offers.

Being in the airline industry has never been easy, but it is now more challenging than ever. Success requires us to collectively bring fresh ideas, approaches, and innovations to the table. The flexibility to adapt to an increasingly dynamic landscape is also critical to growth, said James Fernandez, Chief Commercial Officer at Accelya. Now more than ever before, airlines need independent partners that understand the challenges they face and how to overcome them with a laser focus on delivering value.

Report Methodology and Approach

The research consisted of two core components: an online survey of 60+ airline executives from global network carriers, domestic/regional airlines, and low-cost and ultra-low-cost carriers around the world; and confidential one-on-one telephone interviews conducted by Atmosphere with 10 airline executives from around the world.

The report features charts and graphics that highlight the online survey results, along with anonymized comments from the one-on-one telephone interviews, and relevant findings from Atmospheres syndicated consumer and airline industry research.

The 39-page (2.33 MB) report can be downloaded here.

See also: Future of Airline Distribution and NDC - Interview with Yanik Hoyles, IATA (Nov 2019)

See latest Travel Industry News, Video Interviews, Podcasts and other news regarding: COVID19, Accelya, Forecast, Trends, Outlook.

Headlines: Promoting Hua Hin Airport and Prachuap Khiri Khan to Regional Markets - Interview  IHG Signs Three Hotels in Japan  EASA and FAA Approve Viasat's Ka-band IFC for Challenger 300-Series  Bangkok Airways Closes Ticketing Offices  France Awards Nguyen Thi Phuong Thao with Legion of Honour  Weilu Wang Joins Four Seasons Hangzhou at West Lake as Pastry Chef  STR Reports Global Hotel Pipeline Data for March  Egyptian Air Force Signs C295 Support Contract with Airbus  Tokyo-Narita Airport Launches Face Express  FlyArystan to Launch Flights from SCO, GUW and NQZ to Kutaisi, Georgia  Air Canada Revises Refund and Future Travel Policies  IBS Software to Upgrade Gulf Air's Falconflyer FFP  Airbus Plant in North Wales Starts Using Sustainable Aviation Fuel  British & Irish Lions Confirm Coaching Team for 2021 Tour to South Africa  United Airlines Encourages More Companies to Join Eco-Skies Alliance  TFE Hotels Appoints Amanda Cottome as GM of A by Adina Sydney  Saudia to Commence IATA Travel Pass Trial on KUL - JED Flights  More Exclusivity, More Benefits - Melia Samui Opens The Level  Luxury Resort in Maldives Buys COVID19 RT-PCR Machine  British Airways Appoints Noella Ferns as Head of Sales - Asia Pacific  Dara Airport City Hotel in Phnom Penh Appoints Weng Aow as GM  Oakwood to Open Four Properties in China This Year  Norway's First P-8A Poseidon Aircraft Moves into Assembly  Japan, Singapore, Germany and South Korea Retain Top Spots in HPI  Accor to Open Australia's Second Mövenpick Hotel in May  Bangkok Airways Waives Rebooking Fees  Onyx Hospitality Opens Group's First Shama Resort  Malaysia Airlines Group to Reduce CO2 Emissions by 25m Tonnes in 2021  Qatar Airways to Launch Sea-to-Air Transfers from Shenzhen to HKIA  Derazona Helicopters Orders Airbus H160 Helicopter  Marriott Partners with Scholars of Sustenance for Rescue Kitchen in Phuket  Tourism Cares Expands Board of Directors  Hyatt Opens First Andaz Resort in Asia  Saudi Arabia Hosts UNWTO's 9th Global Tourism Crisis Committee  Boeing Warns Airlines of Potential Issue with Some 737 MAX Aircraft  BA CityFlyer to Launch Flights to Jersey and Gibraltar from LCY  Emirates to Celebrate UAE's Vaccination Programme with Special Flight  Air Astana Launches Meet & Greet Service at ALA, NQZ and FRA  Embraer Publishes Info on Using Business Jets to Transport Vaccines  Messe Berlin 'Very Pleased' with Inaugural ITB India; Dates Set for 2022  Tigerair Taiwan Takes Delivery of First Airbus A320neo Aircraft  Phoenix Aviation to Promote Hua Hin Airport to Regional Markets  Banyan Tree Signs Second Dhawa Resort in Vietnam  Thai Airways to Operate International Flights to 10 Destinations in April  Airbus and TNO to Develop Aircraft Laser Communication Terminal  Mandarin Oriental Lago di Como to Reopen 15 April  Smiths Detection to Upgrade Heathrow's Cabin Baggage Screening  Thomas Cook Opens Outlet in Varanasi, India  Etihad Airways Launches Flights to Ben Gurion Int. Airport in Tel Aviv  No Indication of a Recovery in Demand for International Air Travel  Singapore Airlines Migrates to Sabre's New Crew Manager Solution  VistaJet Orders 10 More CL350s; Takes Delivery of First Two Global 7500s  Qatar's First Marriott Executive Apartments Open in Doha  Marc Speichert to Join Four Seasons as CCO and EVP  Leslie Chiyoma Appointed GM of Grand Park Otaru in Hokkaido  Global Air Cargo Demand Up 9% on Pre-COVID Levels  Modular Aircraft Wins International Design Award  Steigenberger Hotel Doha Appoints Sherief Abouelmagd as GM  Duetto Appoints Chris Crowley as Senior Vice President of Sales  Singapore to Accept IATA Travel Pass from 1 May  Changi Airport Launches Safe Travel Concierge App  Thai AirAsia Launches Promotion  Salesforce to Upgrade Singapore Airlines' CRM with 1Point  Qatar Airways Operates World's First Fully COVID19 Vaccinated Flight  British Airways Invests in Future of Hydrogen-Electric Aircraft with ZeroAvia  Alaska Airlines Confirms Order for 23 Boeing 737-9 Airplanes  Elbit Systems Completes Acquisition of Sparton  Air Canada Terminates Transat Acquisition  Saudi Arabia Has 73,057 Hotel Rooms in Pipeline  Wharf Opens Stunning Niccolo Hotel in Suzhou, China  Airlines: A Path Back to Profitability  Sabre Launches New Airline Storefront  Vietjet to Resume International Flights  SITA Appoints Martin Smillie as VP Communications & Data Exchange  Embraer Completes Aerial Refueling Trials Between Two KC-390s  Elbit Systems Acquires Rokar from BAE  China Airlines to Launch Taipei - Palau Flights  Emirates Resumes Daily Airbus A380 Flights to Bangkok, Thailand  Willie Walsh Becomes Director General of IATA  American Airlines Offering Quarantine-Free Travel to Italy  Jumeirah Appoints Ermanno Zanini as RVP and GM of Burj Al Arab  Cross Signs Franchise Agreement for Seven Hotels in Japan  Hong Kong Air Cargo Launches Pilot Recruitment Drive  Boeing Awarded US$1.6 Billion Contract for 11 P-8A Poseidon Aircraft  WHO Appoints Carl Bildt as Special Envoy for ACT-Accelerator  Hong Kong Airlines to Trial Lab App Module of IATA Travel Pass  Thailand's Top of the Gulf Regatta 2021 to Take Place in November  World Tourism Organization Outlines Two Scenarios for 2021  TUMI and McLaren Unveil New Collection  Accelya Signs Distribution Agreement with Air France-KLM  Corsair Takes Delivery of First A330-900 Aircraft  Qatar Airways Extends Support of Orbis' Blindness Prevention Programmes  WHO Calls for More Studies into Origin of SARS-CoV-2 Virus  Japan Coast Guard Orders Two More Airbus H225 Helicopters  Thai Airways to Operate Two Flights Between Frankfurt and Phuket  Travellers Need COVID19 Tests to be Convenient and Affordable  Jelena Bojanic Appointed GM of A by Adina Canberra Hotel  Southwest Airlines Orders 100 Boeing 737 MAX Aircraft  TFE Begins Major Expansion with Opening of First Hotel in Austria  Bombardier Delivers 50th Global 7500 Business Jet  British Airways Starts Selling Cook-at-Home Meal Kits  Airbnb Launches What's My Place Worth Tool in Thailand  Qatar Airways Enhances Oryx One IFE with PressReader Partnership  Airbus Launches Travel Companion App - Tripset  United Airlines to Increase Flights in May  IATA Publishes 2020 Safety Report  FlyArystan Takes Delivery of Two More Airbus A320 Aircraft  GKN Aerospace Wins Boeing 777X EWIS Contract  Delta to Launch Flights to Iceland from Three Cities in U.S.A.  Marriott Signs Three Hotels in Saudi Arabia  Sabre Launches Qantas NDC Offers in Australia and New Zealand  Mandarin Oriental New York to Reopen 1 April  Air France Trials ICC AOKpass on CDG - SFO and LAX Flights  Bell Boeing V-22 Osprey Logs 600,000+ Flight Hours  SITA Upgrading Services at Sydney Airport in Australia  Dusit Thani Maldives Hosts Professional Tennis Coach Jerome Becker  Elbit Systems Wins Night Vision Goggles Order from German Federal Police  NDC - Exclusive Interview with Kathy Morgan of Sabre Travel Solutions  Elephant Conservation, Jungle Bubbles and Tourism in Thailand - Interview  IATA Travel Pass - Interview with Vinoop Goel, Director Airports - APAC  How's Business in Pattaya, Thailand? Interview with MD of Tiffany's Show  Will British & Irish Lions' Tour of South Africa Go Ahead?  ASEAN Tourism Forum 2021 Postponed Until January 2022  HD Videos and Interviews  Podcasts from HD Video Interviews  RSS News Feed and Ticker  Travel Trade Shows in 2020 and 2021  High-Res Picture Galleries  Travel News Asia - Latest Travel Industry News 

Receive our Latest Travel News Daily Email free of charge by entering your email address and name in the boxes to the right and clicking subscribe. You can also receive the news by WhatsApp, stay updated with our RSS Feed Travel Industry News by TravelNewsAsia.com, and even Add the Headlines to Your Website free of charge. Have questions? Please read our travel news FAQ.

     
Advertising
Advertising
Copyright © 1997-2021 TravelNewsAsia.com