According to research conducted by Accelya (a provider of technology products and services to the travel and transport industry), the following airline trends will be observed in 2018.
- Growing passenger demand
Iata statistics say 3.8bn passengers used air travel in 2016. The amount of global air traffic doubles every 15 years – a consistent trend that has held since the 1980s.
Accelya expects this trend to continue due to three factors:
- Millennials are more likely to travel by air than previous generations
- High-growth global regions, like Asia, are expecting their middle class to double in size, which will include new-found access to disposable income
- Air travel is becoming more affordable
- The rise of budget airlines
The demand for low cost carriers is on the rise. US-based Southwest Airlines carried the most scheduled passengers globally in 2016 (151.8 million).
Accelya says full-service carriers like American Airlines and United Airlines identified the low-cost opportunities and introduced their basic economy options in early 2017. Despite some public push back, traditional airlines do see varied economy options as a viable way to capture price-sensitive passengers.
- Biometrics take centre stage
Accelya’s report states: “Internal process improvement has been at the forefront of today’s airline trends, with the main driver being customer convenience. Today’s latest technologies, such as biometrics, can help decrease wait times at check-in, bag drop, boarding, passport control and security. Biometrics, in particular, could potentially replace paper documentation.”
- Artificial intelligence
Useful artificial intelligence is made possible with the vast amounts of data that airlines can now collect across their entire operations. Customer preference data, employee information, and scheduling history can lead to trip personalisation, improved employee incentives, and increased scheduling efficiency, according to Accelya.
Concrete examples of AI, including customer service, dynamic network scheduling and self-rostering, have caught the attention of airlines. It is worth noting that the percentage of airports that plan to trial AI systems increased from 24% in 2016 to 45% in 2017.