Airline Mobile Technology And Social Media Trends - 2011

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A presentation of airline information technology trends, dated August 2011.

Based on data from the IT industry as well as big travel technology companies like Amadeus, this presentation outlines trends in two main areas, mobile technology and social media.

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Airline Mobile Technology And Social Media Trends - 2011

  1. 1. Airline Mobile Technology and Social Media Trends August 5, 2011 Olcay Korol
  2. 2. Contents • • • • • • • • • • Smartphone Market Tablet Market Airline Sector Technology Trends Trends – Mobile Applications Trends – Social Networks Mobile Application Maturity Levels Return-on-Investment Innovation Strategies References
  3. 3. Smartphone Market • According to a 2011 survey by Gartner, mobile smartphone and tablet application development are companies’ second priority in technology strategy • In the US, the number of smartphones will exceed the number of full-featured phones by the end of 2012. • According to a survey by Amadeus, 16% of all passengers and 34% of frequent fliers buy tickets via smartphone
  4. 4. Smartphone OS Market Shares Source Year Symbian Android RIM iOS Microsoft Diğer Gartner 2011 Q1 27.4% 36.0% 12.9% 16.8% 3.6% 3.3% Gartner 2010 37.6% 22.7% 16.0% 15.7% 4.2% 3.8% Gartner 2009 46.9% 3.9% 19.9% 14.4% 8.7% 6.1% Gartner 2008 52.4% 0.5% 16.6% 8.2% 11.8% 10.5% Gartner 2007 63.5% N/A 9.6% 2.7% 12.0% 12.1
  5. 5. Tablet Market • Sale figures  2010 (real): 17.6 M total. 14.7 M iPads  2011 (estimated): 70 M total. 48 M iPads  2015 (estimated): 294 M total. 138 M iPads • Market shares  2010 (real): %83 iOS, %14 Android  2011 (estimated): %69 iOS, %20 Android  2015 (estimated): %47 iOS, %39 Android • Airline sector  Cathay Pacific  American Airlines
  6. 6. Mobile Web vs. Mobile Application • Mobile web development  Cheaper  Can be difficult to use  Difficulties with satisfying expectations of web users • Mobile (Native) application  Expensive to develop  User-friendliness  Integration with location based services
  7. 7. Aviation Technology Trends (SITA 2011 Airline IT Trends Survey) • 91% of Airlines foresee an increase in mobile passenger services  60%: Program-level  31%: R&D project • Percentage of passengers who check-in via mobile devices is expected to rise from 3% in 2011 to 15% in 2014. • 69% of airlines either sell or plan to sell tickets via social networks by the end of 2014. • 80% of airlines either sell or plan to market & sell products via social networks by the end of 2014.
  8. 8. Trends – Mobile Applications • TravelTech research prepared for Amadeus http://www.amadeus.com/airlineit/the-always-connectedtraveller/docs/Amadeus-The-Always-Connected-Traveller2011-EN.pdf • The concept of “Always-Connected Passenger” • 3-phase analysis:  Existing or short-time projects (max. 12 months)  Mid-term projects (Those that are expected to be live in 1-2 years)  Long-term projects (Those that are expected to be live in 35 years)
  9. 9. Trends - 1 Services that are already provided by the airlines, or planned to be provided within the next 12 months: • Basic Mobile Features  Schedule information  Booking  2D-barcode baggage pass printing  Schedule change/cancellation notifications via SMS  Alternative flight suggestion via SMS • Most of these have already been industry-standard • None of them are differentiating
  10. 10. Trends - 2 Services that are expected to be provided within 1 or 2 years: • Ancillary services and merchandising  Seat selection  Food selection and purchase • Personalized ticket price suggestions • Location-based services  Airport shopping information  Last-minute information for passengers at the airport  Navigation information for check-in desks and gates • Troubleshooting on social media
  11. 11. Trends - 3 Services expected to be widespread in 3 to 5 years: • Applications for better customer experience  Disruption management (Notifications of delays, cancellations etc)  Social media responses  Passenger tracking (No need for «last calls» any more)  Notifications based on push technology (possible up-sells) • Services based on new technologies and device features  Mobile payment  Near Field Communications (NFC)   Faster check-in and boarding Depends on the availability of smartphones with this feature  Voice command
  12. 12. Trends – Social Networks • Marketing, Campaigns • Last-Minute Updates • Ticket Sales • Reward Programs • Troubleshooting • Peer Review
  13. 13. Mobile Application Maturity Levels • Level 1: Basic.  Adaptation of existing services to mobile devices • Level 2: Deployment of “anytime, anywhere” services and applications  Continuous up-sell capacity  Cross-sell possibilities • Level 3: Contextual intelligence, i.e. understanding the passenger’s context and offering services accordingly  Operational improvements based on location-based services  More real-time information  Prevention of fraud
  14. 14. Return On Investment • Reduction of Opex  Fewer staff, more self-service  Decline in the usage of kiosks  Rise in efficiency • Revenue increase  Ancillary services  Impulse sales  Last-minute sales • Customer loyalty • Brand awareness
  15. 15. Innovation (1) • Pioneering • Service differentiation  Competition offers almost the same services  How to differentiate?    • Variations in services offered Loyalty programs Customer-specific offers Same customer experience on different channels (Multi-channel integration)  Example: Start booking process on airline web-page, finish on the mobile platform  Use of smartphone features (gyroscope etc.)
  16. 16. Innovation (2) Some features that passengers say «I’d love to use it»: • Real-time flight information updates • Real-time baggage arrival updates • Directions for navigating at the airport
  17. 17. Strategy - Platform Selection • Which way to go: Mobile Web vs Native App? • Mobile web page  At least as important as mobile applications • Mobile native application platforms  iOS  Android  Blackberry  Windows 7  Java • Tablet application development  A niche domain
  18. 18. Strategy – Data Analysis • Mobile reports • Detailed analysis  Mobile application usage data     Device OS Location Cumulative statistics of mobile platforms    Sales figures Check-in usage ratios Ancillary service usage ratios
  19. 19. Strategy – IT Organization (1) • Almost all airlines outsource mobile application initiatives • Outsourced activities  Software development      Mobile software startups Airline software companies Systems integrators PSS/GDS service providers Support
  20. 20. Strategy – IT Organization (2) • In-house IT activities     • Mobile strategy development Project management Style / UI / Customer experience projects Integration with existing systems Coordination with business units
  21. 21. Bibliography • http://www.slideshare.net/softwarepark/mobile-apps-social-network-trendsimpact-on-airline-business • http://www.amadeus.com/airlineit/the-always-connectedtraveller/docs/Amadeus-The-Always-Connected-Traveller-2011-EN.pdf • http://landlopers.com/2011/01/18/top-airline-travel-iphone-ipad-apps/
  22. 22. Thank You...

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