Travel Tech Consulting presentation for Amadeus Cannes
The Always-Connected Traveller:How Mobile Will Transform the Future of Air Travel June 16, 2011 1
Connecting anywhere, anytime from any device The Era of the Always Connected Traveler Has Arrived At Home On the Plane Wi-Fi Home Wi-FI Connectivity Networks In the Office Corporate booking At the Airport and Expense In The Hotel Wi-Fi and Wired Networks On the Road Full feature phones, Smartphones & Tablets
Mobile’s Impact Across the Travel Life CycleThe new mobile devices facilitate continuous engagement . Dream, inspire, Share, plan & book Feedback. Dream At Check-In, Buy Airport Ancillary & Merchandise Explore, Connect and Plan, Share On Board Entertain, and Explore Source: Travel Tech Consulting Inc.
Smartphone UsageFrequent & Younger Travelers Have Greater Smartphone Usage • One third of frequent flyers and one quarter of 18-34 year olds utilize smartphones and tablets for booking compared to 16% for total travelers
Innovative Features / Services Proactive Communication is the Key• Real time updates on flight status and baggage information are clearly innovative features desired by passengers.• Passengers are also anxious to receive directions on mobile devices and are ready to embrace mobile check-in and self luggage tagging. Q25. Which of the following innovative features or services would you use?6 Source: J.D Power
Overall Airline Experience: Importance of Every Step Pr-Flight Communication is a Major Opportunity Respondent rate the Pre-Flight and In-Flight stages of their trip as being the most important Helping the passenger to choose, book and board the flight without inconvenience is key to delivering satisfactionSample: Total, 2,978, WTD. Q19. When flying how important are the following 6 steps for your overall airline travel experience?7 Source: J.D Power
Aspects of Travel For Improvement Disruption Management is the Key Q21. Which of the following aspects of your airlines travel experience do you think could be improved? The improved management of disruptions is key to passenger satisfaction. Please Note: Top 3 selections are combined A multiple response setSample: Total, 2,978, WTD.8 Source: J.D Power
Check-In Method Mobile Check-In is Still at an Early Stage of Adoption Last Check-In Method Preferred Method Diff.* Preferred Method 59.4% (+9.4%) Latin Middle North Asia Europe 19.3% (-13.2%) America East America Online with PC 55.7% 60.9% 45.4% 59.7% 62.7% 13.7% (+1.0%) Check-In Desk 20.5% 25.2% 40.3% 26.5% 10.8% 5.6% (+2.2%) Self-Serve Kiosk 11.7% 7.2% 8.4% 5.5% 20.2% Mobile/Smartphone 7.5% 5.0% 4.3% 3.2% 5.6% 1.8% (+1%) SMS/Text 4.5% 1.7% 1.6% 4.8% 0.3% Other 0.0% 0.0% 0.0% 0.5% 0.4% 0.2% (-0.3%) Preference for a Mobile/smartphone check-in method is still niche, though Asia seems the best expansion point Sample: Total, 2,978, WTD. Q10. How did you check-in for your flight? Q12. What is your preferred check-in method? *Variance between Preferred and Actual Purchase Channel9 Source: J.D Power
Pre-Purchase Additional Services Few Airlines Offer Mobile Pre-Purchase of Ancillary Services Additional Service Channel Please Note: A multiple response set Sample: Total, 2,978, WTD.10 Q15. Which additional airline services, if any, did you pre-purchase? Source: J.D Power Q16. How did you purchase your additional airline services?
Social Media Social Media is Impacting Markets Worldwide Q28. Which social media sites do you use for travel related purposes? % of Respondents Using Social Media Travel Related Sites Total Asia Europe LA ME NA Sample: Asia 700, Europe 574, Latin America 700, Middle East 403, North America 601 & Total, 2,978, WTD.11 Source: J.D Power
Standard Functionality Matrix AF APAC APAC EU JP * LA ME NA SCBookingSchedulesCheck-inBCBPItineraryMgmtDisruptionMgmtLoyaltyAccessLoyaltyEnrollBook LoyaltySeatsFlight StatusAirport Info = Today APAC = Asia / Pacific JP = Japan = 6 mos. AF = Africa ME = Middle East EU = European NA = North America = 12 mos. LA = Latin America SC = Scandinavian = > 12 Mos. or No Plans * Domestic Japan only Source: Travel Tech Consulting Inc.
Ancillaries on Mobile AF APAC APAC EU LA JP * ME NA SCBaggagePremiumSeatingPremiumBoardingPre-purchasemealClub AccessOn boardWi-FIDeals andOffersOther Cars & FF – use pts NP but Travel Wheel- Hotels & Hotels at merchants looking at Insurance chair Cars (end cars & of 2011) hotels = Today APAC = Asia / Pacific JP = Japan = 6 mos. AF = Africa ME = Middle East EU = European NA = North America = 12 mos. LA = Latin America SC = Scandinavian =>12 mos. - no current plans * Domestic Japan only Source: Travel Tech Consulting Inc.
Advanced Functionality AF APAC APAC EU LA JP * ME NA SCLBSMerchandisingAdvancedDisruptionSocial MediaMovementTrackingPushNotificationsVoiceRecognitionVideoPaymentsNFCAugmentedReality = Today. JP = Japan = 6 mos. APAC = Asia / Pacific ME = Middle East = 12 mos. AF = Africa NA = North America = 12-24 mos. EU = European SC = Scandinavian LA = Latin America = < 24 mos. or under consideration = No Plans * Domestic Japan only Source: Travel Tech Consulting Inc.
Native App Development Does an Airline Need a Downloadable App? AF APAC APAC EU LA JP ME NA SC IOS Android RIM Nokia Windows 7 HP WebOS = Today APAC = Asia / Pacific JP = Japan = 6 mos. AF = Africa ME = Middle East EU = European NA = North America = 12 mos. LA = Latin America SC = Scandinavian = < 24 mos. or under consideration =>24mos. Or No Plans• Most airlines interviewed have invested in native app development with the Apple iPhone as the primary platform of choice, followed closely by Google’s Android OS.• This does not diminish the need to redesign and optimize for the mobile web, as viewing a normal website on even the most advanced smartphone can be a frustrating experience. Source: Travel Tech Consulting Inc.
Use of 3rd Party Developers What is the Role of 3rd Party Developers? AF APAC APAC EU LA JP ME NA SC Small – Midsized Mobile Generalists Travel Mobile Specialists Large System Integrators PSS/DCS/GDS providers In House = Used Today and Tomorrow APAC = Asia / Pacific JP = Japan AF = Africa ME = Middle East = Considering EU = European NA = North America = Not Used LA = Latin America SC = Scandinavian• Many airlines use small to midsized mobile generalists who are based locally for their mobile web and app development.• Many airlines rely on PSS/DCS/GDS providers to develop mobile solutions that are tightly integrated with their internal systems.• The most common response from the airlines interviewed was the use of three out of four of these types of third parties all performing different functions. Source: Travel Tech Consulting Inc.
Strategy for Full Feature Phones Full Feature Downloadable Apps are an Option to Consider LinkedIn for Full Feature Phone Java App Facebook for Feature Phone Java App• No airlines interviewed considered the creation of an application for full feature phones.• Full Feature phones still dominate much of the world and Web browsing on a full feature phone can be a frustrating experience.• Social media sites such as Linked-In and Facebook have recognized the fact that a vast majority of the world is still using full feature phones and have created Java applications Source: LinkedIn and Facebook
What is Mobile Innovation?Real Time Information is Essential • Innovation should be simply measured on how successfully technology is deployed and how it impacts the passenger experience. • Emerging tends such as augmented reality and RFID bag tags are innovative only if their value is perceived as improving the passenger experience
Critical Functionality Issues• Ability to operate multi-channels• Full range of solutions covering all aspects of cycle• Integration with airline IT• Consistency across channels• Common business logic• Robust architecture
Defining an ROI for Mobile Development • Efficiencies – Reduction in staffing – Reduction in kiosk hardware needed – More efficient use of staff time Curbside Carry on Fee Flight Alerts • New revenue opportunities Check-in Baggage Club Access Premium Seating – Ancillary sales Premium Wine Baggage Premium Boarding Delivery Wi-Fi Pre-Purchase of Meals – Impulse buying Airline Logo Jacket Noise-Cancelling 3D Glasses Earphones – Last minute bookings • Maintaining or improving loyalty among frequent travelers – Mobile web and apps development are as an extension of overall marketing expenses and brand management. – How your brand is perceived on various platforms needs to be consistently managed.
Airline Mobile Travel Timeline Available Now or within 12 months Widespread 1- 2 Years Widespread 3- 5 YearsMobileFunctionality Book Loyalty Enroll in Loyalty Booking Schedules Flt Status Immersive Tablet Interactive Voice Apps Commands Immediate Social Augmented Interactive Videos Check Loyalty Itinerary Mgmt Seat maps Media Response Reality Balance Mobile ElectronicAirport Passenger Airline Voucher NFC mobile Mobile Ground Mobile Roaming Tracking boarding payments Operations Airport SMS Disruption Mobile boarding Agent Information Mgmt pass and BCBP Curbside Carry on Fee Flight Alerts Check-in Baggage Club Access Premium Seating Premium Wine Baggage Premium Boarding DeliveryAncillary Pre-Purchase of Meals Wi-Fi 3D GlassesServices and Airline Logo Jacket Noise-Cancelling EarphonesMerchandising Deals & Offers Airport Coupon Location Based Ancillary Offers Offers Services Personalized Ancillary and Source: Travel Tech Consulting Inc. Merchandizing Offers
SummaryChallenges• All airlines are struggling to keep up with the increasing fragmentation of platforms and the rapid acceleration of mobile innovation.Opportunity• Airlines must find ways to exploit mobile capabilities to drive new revenue and enhance customer loyalty.• Airlines will use more advanced mobile computing to – Drive greater self-service capabilities – Create more immersive mobile experiences – Drive greater airport efficiencies – Deploy greater personalised marketing for merchandising of products and services.