Dec 2022 - Briefing

?? Subscription models can accelerate your business. According to eDreams CEO Dana Dunne ’s, they create an intimate relationship with customers, grow brand loyalty and establish a predictable, recurring, revenue line.

?? Airlines who bet on this model are growing their programs. Alaska’s Flight Pass now includes more benefits and routes, and Frontier Unlimited is now open to kids. What’s more, even if the sun is setting on American Airlines Airpass, we are witnessing the dawn of the AirAsia Super App.

?? These loyalty models are being shaped by four trends: Empowerment, Relevance, Partnerships and Real-time. Even though some question their environmental sustainability, airlines such as Spirit Airlines , continue taking advantage of these programs to improve their financial situation.

??? It’s clear that the Airline Retail Revolution has begun. Early movers like Frontier and Avianca are already reshaping their organization to boost customer engagement and growth, seeking inspiration from other successful travel brands such as Airbnb.

?? Focusing on customer engagement doesn’t necessarily mean being consumer-centric, safety comes before anything else, and it’s good to keep in mind that there are travelers who would rather eat glass than pay an airline fee.

?? Regardless, soaring ticket prices are benefiting the majority of airlines, which are reporting record revenue despite having less passengers than before the pandemic. This could be part of why Air France-KLM managed to partly repay its debt.

?? On the flip side, some are questioning if Frontier Airlines can return to $3 Million in profit per plane. Moreover, crew shortage continues to be an issue in the post-pandemic contest. It’s therefore not surprising that EasyJet launched a recruitment campaign for over-45s.

?? Changes in hiring policies can be a double-edged sword. For some they can be a way to progress. Like for Virgin Atlantic whose application of bold inclusive policy changes resulted in a 100% raise in candidates. But for others, change may not be as easy. In fact, Air India has banned crews from having gray hair.

?? Meanwhile in the Asia-Pacific aviation we are seeing a major recovery, with Tata Group busy in a mega-merging process and a consolidation strategy.

? While in Asia one brand is on its way to rule it all, ITA Airways and Certares haven’t been able to reach a deal, and Avianca and Viva’s merger remains blocked. Hoping for approval, they have now offered a five-point plan to Colombia’s government and sent an open letter for travelers.

?? This is unfortunate as in the South American market competition is rising. Mexican airlines might be challenged on domestic flights, JetSMART is looking to expand in Colombia with a new airline and Turkish Airlines is planning to spin-off of its carrier Anadolujet.

?? As former Spirit Airlines CEO B. Ben Baldanza wrote in Forbes, the last three years have structurally changed the airline travel industry. Technology is at the forefront of this evolution; we wave goodbye to airplane mode and witness change in the long-haul narrowbody world.?

?? Directed by low-cost airlines, airports are also transforming: the end to hand luggage liquid restrictions could be closer than we think, and, looking even further, AI may be the next step in the airport evolution.