Wednesday, September 11, 2013

BLOG 2 Airlines Business

Current Trends in the Airlines Industry




When we talked about the current trends in airlines business, often we have focused on the same details such as financing, customer services, and budget airlines. So, to get more knowledge, it’s reasonable to let you know differently in other fields. Firstly, I’d like to focus on changing the face of airline IT trends. The survey is co-sponsored by Airline Business and SITA. This year's survey shows an airline IT climate that is cautiously improving. IT budgets are expected to grow at the majority of airlines in 2013, while the global level of IT spending should reach an estimated $10 billion. The survey also reveals an industry that is quickly adopting the digital world. This brings many advantages, including automation and new services, but also new challenges.


2013 Airline IT Trends Survey focus areas
· Investments in IT are changing the face of air travel
· Mobilizing the passenger journey and business intelligence are   key investment priorities
· Mobile services extend across entire journey
· Mobile services for the workforce are transforming operations
· Ancillary revenues can drive growth and differentiation
· Airlines seek much deeper business insights
· The landscape for check-in is evolving




According to Kollau, Advertising media also infiltrates to the aviation industry. As being high-traffic locations with a diverse and international mix of consumers, brands see airports as an interesting setting for marketing campaigns. We have reported before how consumer brands are teaming up with airports to offer passengers free, branded, airport amenities such as charging zones, video and music rooms, and gaming stations.

This summer, consumer brands such as Heineken, DE and Google are using the airport as the scene for experimental and digital marketing campaigns.
For instance, earlier this month, Heineken and its ad agency Wieden + Kennedy in New York set up a board at New York’s JFK Airport 8 and dared travelers to play "Departure Roulette" changing their destination to a more exotic location.

And then, Travellers who happened to pass by Terminal 8 were given the opportunity for an adventure of a totally different kind, and asked to exchange their current plans for new ones. Those who decided to take the challenge were then asked to press a red button on a billboard showing them their destination. Participants had to agree to drop their existing travel plans—without knowing the new destination first—and immediately board a flight to the new place.
Finally, Those who were spontaneous enough to brave the unknown were rewarded with exotic destinations such as Morocco, Thailand and Cyprus. They were also given USD2,000 for expenses, along with two free hotel nights for their trip. The game is inspired by ‘Dropped’, a new Heineken webisodes campaign that launched a month ago from W+K Amsterdam in which four men are sent to remote destinations and film their adventures.




By the way, have you concerned about the environment in aviation? The environment was relegated to the back burner in late 2012 as the European Commission predictably (in retrospect) delayed implementation of its punishing threats included in its extra-territorial environmental tax and as economic pressures diverted attention.

But the issue is scheduled to recapture the headlines later this year as ICAO recommences its search for a multilateral compromise at the 38th triennial Assembly of ICAO in Sep/Oct-2013. ICAO’s wide democracy is unlikely to deliver a solution sufficiently strict and far-reaching to please the Brussels hierarchy. So some sort of collision appears inevitable, again; but lessons will hopefully have been learned on all sides, sufficient to avoid a repeat of the past highly damaging confrontation.

Meanwhile, high fuel prices have achieved what governments could not. The discipline imposed by US100 oil has forced airlines to use more fuel efficient and younger aircraft and restrain capacity growth and increase load factors.

Consequently, these measures largely unrecognised by Brussels which have been far more effective in reducing emissions than any carelessly and unilaterally imposed tax was ever likely to have.



******Thank you very much******* 


References:

AIRLINE IT TRENDS SURVEY 2013: The changing face of air travel.

CAPA Global Aviation Industry Outlook 2013 - Pursuing certainty in an uncertain world-Part 2, 30th April, 2013.

Raymond Kollau, 25 July 2013.

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