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Right Cloud Mindset: Survey Results Aviation | Accenture
The document outlines a survey of airlines regarding their operational strategies and technology adoption over the next two years, revealing a strong desire for predictive operations through AI and IoT despite facing significant data accessibility challenges. Key areas of investment include maintenance operations, network management, and sales/marketing enhancements, particularly emphasizing the need for omni-channel strategies and dynamic pricing capabilities. The report highlights a shift toward cloud technologies to overcome existing limitations and to realize the vision of airlines as marketplaces in a rapidly changing travel landscape.
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Right Cloud Mindset: Survey Results Aviation | Accenture
- 1. Right Cloud Mindset inTravel Survey Results Airlines* *Featured survey responses are ‘Top-three Ranked’ (%) (i.e., ranked by respondents as either Rank 1, 2 or 3)
- 2. Survey Results Airlines Operations and Maintenance Strategyand Planning, Network Management and Scheduling Sales and Marketing Revenue and Yield Management Distribution Information Technology
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- 4. Key Functional ObjectivesWithin the Next Two Years Operations and Maintenance 80% of COOs desire predictive operations through AI/IOT/ML, within the next 2 years Technology-Related Challenges, in Achieving the Objectives 33 53 63 70 80 Realize Predictive Operations through AI/IOT/ML Embed AI/Analytics, to automate processes Simulate operations and transform workflows using Digital Twins Integrate 3rd party ecosystem and proprietary data in digital platforms, for synergies/benefits Realize sustainable operations, through improved environmental/utility monitoring 40 57 57 60 83 Difficulty in accessing, handling and provisioning the data needed Too much time required to launch innovative solutions Lack of integration of various tools Too much complexity Lack of flexibility of new application or technology
- 5. Top Areas ofInvestment: Maintenance – Next 2 Years Top Areas of Investment: Operations – Next 2 Years Operations and Maintenance Focus is on ‘managing operational schedules’ and on ‘maintenance operations,’ respectively 70% Manage Operational Schedule Manage Station Resources and Facilities 70% Manage Flights 60% Cloud’sbiggestapplication today is in cargo; turnaround timesare considerablyslower than PAX operations;hence thereis significantpotentialto increaseoperationalefficiencies. Business Operations VP - Leading European Legacy Carrier 77% Maintenance Engineering 70% Maintenance Scheduling 60% Commercialize MRO Services 53% Maintenance Operations
- 6. • 80% ofCOOs highlighted the need for predictive operations in their enterprises within the next two years. However, accessing and provisioning the data needed remained the biggest technical barrier, in achieving this vision. • Airlines and airports have typically relied on monolithic systems to achieve interconnectedness and data integration. While data integration systems have been developed to achieve shared data and to connect separate systems, such as AODB, today’s marketplace need is more dynamic—requiring nimbler systems that can scale as per market demand. • As data volumes increase significantly, cloud potential is massive, across areas such as passenger handling (esp. as PAX throughput ramps up), real-time crew collaboration, cargo operations to increase turnaround times, predictive MRO, real-time inventory and theft management and predictive F&B operations in-flight. Operations and Maintenance
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- 8. Key Functional ObjectivesWithin the Next Two Years Strategy and Planning, Network Management and Scheduling Alongside cost reduction, improving collaboration with other functions is a priority for the majority of CXOs Technology Related Challenges, in Achieving the Objectives 35 50 67 70 78 Reduce costs through process improvements or efficiencies Improve collaboration with other functions Have one version of data Improve IT architecture / digital technology capabilities to improve operations (network, fleet and scheduling) Increase sustainability in operations 38 42 43 45 57 62 Difficulty in accessing, handling and provisioning the data needed Issues with real-time collaboration, among functions Too much time required to launch innovative solutions Lack of integration among various tools Lack of flexibility of new application or technology Too much complexity
- 9. 67% 63% 47% 82%58% 43% Strategy and Planning, Network Management and Scheduling Focus on schedules and network management remains high, especially as customer booking window shrinks • In today's environment where the customer booking window is severely compressed, there is an increased importance on building robust networks with the flexibility to scale operations up and down. New techniques, such as "clean sheet optimizations" are best built and tested with cloud-powered tools. • Additionally, cloud and analytics promises the ability to streamline operations further, building networks designed to drive higher on-time performance without increasing costs. Top Areas of Investment: Scheduling – Next 2 Years Manage Network Manage Airline Partnerships Plan and Manage Routes Top Areas of Investment: NetworkManagement – Next 2 Years Plan and develop market schedules Plan and manage schedule changes Plan and manage schedule distribution
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- 11. Key Functional ObjectivesWithin the Next Two Years Sales and Marketing 73% of CMOs and CSOs plan an omni-channel strategy (esp. mobile), with intent to dynamically offer their services/products Technology Related Challenges, in Achieving the Objectives 53 53 57 60 67 Too much time required to launch innovative solutions Lack of integration among various tools Too much complexity Difficulty in accessing, handling and provisioning the data needed Lack of flexibility of new application or technology 50 53 53 70 73 Achieve multi-channel capability Innovate new products/packages during different booking/time periods Focus on SEO and SEM, to create personalized campaigns Centralize, automate and host key processes Customize and personalize language/content for local audience
- 12. 93% 77% 67% 63%50% Top Areas of Investment – Next 2 Years Sales and Marketing The desire is to intelligently target travellers ‘on-the-go’ Manage Flight Information Manage Marketing Campaign Manage Advertising Manage Sales Channels Manage Promotions Today,airlineproductsaretoo complex.Needtomakeitsimpler andwithbetterservicedesign. Also,it’simportantto commercializetheecosystem. Forexample,weenabled customerstopurchaseparking ticketsthroughourapp,while alsointegratingwellness,F&B, remoteworkingspaces,with intenttodefinetheend-to-end journey. Head of Digital, Large Scandinavian Airline
- 13. • 73% ofairline CMOs and CSOs desire multi-channel capability to target consumers. Additionally, 70% of CMOs/CSOs desire the ability to dynamically innovate their offerings, i.e., innovate new products and packages during new time periods. • Today, as companies seek to target consumers ‘on-the-go’, focus on direct channel capabilities (omnichannel), especially mobile, remains high. However, current legacy systems are limited in their ability to dynamically construct such offers—requiring incumbents to seek intelligent, scalable solutions such as cloud. • At the same time, it is imperative to have an ecosystem focus, for example the ability to cross-collaborate with other entities to develop interoperable solutions. Cloud will also enable the airline to be closer to MAAGs and Meta search engines (by having apps on the cloud) and unlock the full potential of online shopping and e-commerce engines. Sales and Marketing
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- 15. Key Functional ObjectivesWithin the Next Two Years Revenue and Yield Management 84% of COOs intend to improve direct capabilities and dynamic pricing for bundled & unbundled products Technology Related Challenges, in Achieving the Objectives 60 71 84 84 Optimize existing distribution channels / improve direct capabilities Improve Dynamic Pricing Strategies for Bundled and Unbundled products Augment and Automate Revenue Management through AI/ML capabilities Create one-stop-shop view, by integrating retailing, merchandising and RM 49 56 56 60 64 Difficulty in accessing, handling and provisioning the analytical data needed Too much time required to launch innovative solutions Lack of flexibility of new application or technology Lack of integration among various tools Too much complexity
- 16. • Today, historicaldata in revenue management is less powerful than before. However, the fundamental principles underlying revenue management remain valid. • With passenger volumes down, traffic mix has shifted more toward leisure, VFR, and shorter haul business. Identifying key attributes and leverage these in differentiated product offerings will give airlines more chances at meaningful segmentation opportunities. However, the data challenges will also increase. • The cloud allows more holistic and integrated near-term pricing and longer-term developments to harness improved offer capabilities and new order capabilities. Revenue and Yield Management The intent is to construct dynamic offers by segment, and at an individualized level 77% Monitor Fares and Inventory Adjust Fares and Inventory 67% Price Products and Services 63% Apply Promotional Levers 50% Top Areas of Investment– Next 2 Years
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- 18. Key Functional ObjectivesWithin the Next Two Years Distribution 72% of CXOs plan on improving their in-house architecture, to develop rich content (as NDC gains traction) Technology Related Challenges, in Achieving the Objectives 33 42 63 63 72 Improve in-house architecture to develop rich content Create frictionless payment capabilities Improve direct distribution channels and collaboration with 3rd party retailers Shift from PSS to full retailing platforms Develop new ancillary offerings 40 48 52 53 65 Issues with real-time system collaboration, among functions Difficulty in accessing and handling the data needed Too much time required to launch innovative solutions Lack of integration of various tools Too much complexity
- 19. 73% 60% 52% TopAreas of Investment – Next 2 Years Distribution The end vision is to realize “Airline as a marketplace,” to cater to consumers across the end-to-end journey, on a real- time basis Define Distribution Strategy Manage Distribution Relationships Manage Products/Services Across Different Channels Cloud willmakea bigdifference in distributioncosts; the current costs are not sustainableandthe bigfocuson NDC willonly favour newtechnologies.Airlineswill then personalizeofferings, especiallyunbundledones. For example,luggage andseat, to create that compelling merchandizingview. SVP - Europe, Large Middle East Carrier
- 20. • In anenvironment where long-haul travel is under severe pressure (especially business travel), it is important to tackle depleting margins through technology. A key play is ancillary revenue, and airlines’ ability to offer more choices to customers, by playing the role of a retailer. • As NDC takes flight, airlines will have more control over offer construction and retailing. • Cloud can overcome current limitations and chart the journey towards ‘Airline as a marketplace,’ to capture loyalty. The vision of being the ‘Amazon of the sky’ is possible, by integrating e-commerce solutions with duty free and in-flight inventory, for end-to-end experience. • Cloud also has great potential in full content agreements with external partners (e.g., GDS). Historically, full content agreements were always a legal challenge, with significant associated time and costs. Cloud can help relieve these cost pressures. Distribution
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- 22. 53% Develop and Manage ITService Strategy Develop and Manage Business Relationships Manage IT Service Deployment Information Technology Reducing costs, launching new tools/services and improving collaboration with various functions remain a key priority for Airline CIOs, CTOs and CDOs 30% 43% 53% 53% 53% Reduce costs through process improvements or efficiencies Improve collaboration with various enterprise functions Launch new digital tools/services Improve system integration with different partners (APTCO, retailers, GDS, etc.) Cybersecurity Within Information Technology, CIOs plan to: 67% 63%
- 23. Three mindset shiftsto scale cloud What does it take to up your cloud game? Hint: It’s not only about the technology Think technology to grow business Old mindset: The CIO drives IT New mindset: The CIO drives recovery and future growth 01 Think new ways of working Old mindset: It is working well today New mindset: Future agility is non- negotiable 02 Think success beyond the change Old mindset: Fear around too much risk New mindset: Confidence in multi-fold rewards 03 READ THE FULL REPORT
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