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A new survey has suggested that there is an urgent need for improvement in the ancillary efforts of airlines across the globe. The survey results, conducted among 105 global airline respondents, were presented as part of the latest “State of Airline Retailing” produced by LeapShift and sponsored by travel tech company Meili.
Notably, none of the survey respondents expressed the belief that airlines were doing a “very good job” at retailing, and just 14% of participants stated that airlines were doing a “good job” at retailing. The majority of respondents revealed that the airline they worked for neither utilised an Offer and Order Management System, nor the ability to sell airline partner ancillaries.
The survey highlighted that airlines are concentrating their efforts on leveraging the customer experience to drive revenues. Almost half (47%) of respondents indicated that they are using their loyalty program to create personalised offers to customers. Furthermore, approximately half of respondents indicated that they are using dynamic pricing for seats and bags, and with an additional 34% stating their intentions to introduce this pricing approach in the near future.
Mike McGearty, CEO of Meili, said: “The survey results clearly demonstrate the urgent need for airlines to prioritise enhancing the customer experience and elevating their ancillary efforts. While some progress has been made, there is still significant room for improvement in this critical space. It is crucial for airlines to acknowledge the added benefits that direct service provider relationships can bring to their customers, especially in terms of merging and enhancing loyalty benefits. For instance, airlines can directly integrate their loyalty programs with those of car rental companies to further enhance the customer experience. By harnessing cutting-edge technology available in the marketplace, airlines can successfully deliver the superior and frictionless experience that customers demand and deserve.”
The author of the report, Ann Cederhall, Travel Technology Strategist and Educator with LeapShift, said: “The opportunity that airlines have to create amazing customer experiences and lifelong loyal customers is so unbelievably huge that I believe we're on the cusp of a massive airline industry transformation that will put the customer front and centre once again.”
