The airline industry is undergoing a digital transformation driven by increased competition, surging passenger traffic, rising customer expectations for personalized experiences, limitations of legacy systems, and technological advancements like IoT, AI chatbots, blockchain, and data analytics. Airlines are embracing digital-first approaches, such as self-service kiosks, biometrics, and automated baggage handling, to enhance operational efficiency and customer satisfaction. Coforge offers a digital roadmap for airlines through modernized passenger service systems, digital retailing with IATA partnership, optimized crew management, and transformed cargo operations, enabling them to stay competitive in this rapidly evolving landscape.
Currently, what does the airline industry look like?
Let’s take a few examples.
From booking flights to accessing boarding passes, travelers can now manage their travel through their smartphones.
Self-service kiosks at airports have empowered passengers to check in, print boarding passes, and even drop off their baggage.
Airlines are now sharply inclined towards introducing automated baggage handling to make the process more efficient and accurate.
Many airlines have implemented biometric identification systems, for example, facial recognition and fingerprint scanning for a seamless boarding process.
The list goes on because these are just a few of the innovations in the aviation sector. By approaching a digital-first approach, airlines are propelling to unimaginable heights.
What are the key drivers of this digital transformation and where does Coforge stand in the entire scenario?
Let’s dive deeper.
Increased Competition
The aviation industry has witnessed a huge leap in competition over the past decade. Factors like deregulation, the rise of low-cost carriers, the pandemic, and globalization catalyzed this intense competition. It pushed airlines to innovate and adapt rapidly, focusing majorly on enhanced customer experience, cost optimization, route expansion and better airport management system. The emergence of new players changed the traditional market dynamics, leading to diversification of routes and increased capacity. To stay competitive and get an edge through top-notch services, it is indispensable for airlines to embrace digitization, leverage technology and improve operational efficiency.
Passenger Traffic
Global passenger traffic in 2024 is predicted to reach 9.7 billion passengers. From 2023 to 2042, total passenger traffic worldwide is predicted to grow at a CAGR of 4.3%. - ACI World Report
The aviation industry is experiencing a remarkable surge in passenger traffic, propelled by factors like economic growth, the upsurge of the middle class in emerging markets, and more. In the upcoming time, to thrive in the aviation sector, it would be crucial for the airlines to manage the rising passenger traffic. Though this increased demand has presented opportunities for airlines, it has also burdened the existing facilities and infrastructure, giving rise to congestion, delays, and operational complexities. To meet the upsurged requests and get rid of the challenges, there is no choice for airlines except investing heavily in streamlining processes, technological advancements, and smoothening operations. All of these can be achieved only after embracing digitization.
Rising Customer Expectation
Presently, travelers' expectations have soared to unexpected heights. Travelers are expecting more than just a timely and safe flight. They look forward to a personalized, digitally powered, and seamless travel experience. From check-ins to enjoying flight amenities, customers expect convenience, top-class service, real-time updates on their smartphones, and hassle-free check-ins. The rise of millennials and Gen Z passengers has catapulted it. Moreover, the expansion of social media and online reviews have empowered customers, pushing airlines to prioritize customer satisfaction. To meet these rising expectations, the aviation industry must leverage technology and adopt customer-centric strategies.
Legacy Systems
Traditionally, airlines depended on legacy systems that were siloed, inefficient, and poorly equipped to meet the dynamic demands of the digital age. As customers’ expectations evolved, the inefficiency and rising cost of these outdated systems failed to keep up with the digitization in every sector across the globe. Additionally, the high volume of data generated by airlines usually remained untapped in the past. However, in the current digitized world, airlines need it to gain valuable insights. In a nutshell, the limitations of the legacy systems pushed airlines to take up digital transformation and pave the way for a more customer-centric, data-driven, and technologically advanced aviation industry.
Technological Advancements
Key technologies that are fueling the digital transformation in the airline industry:
Internet of Things (IoT)
IoT uses sensors for pressure, temperature, vibrations, and more to allow real-time monitoring and analysis of aircraft, enabling predictive maintenance and improved safety.
AI Chatbots
AI chatbots are increasingly adopted by airlines to automate customer service, offer personalized recommendations, and streamline processes. Chatbots can handle customers’ inquiries, freeing up agents to pay attention to complex issues. AI can also be harnessed for crew scheduling, revenue management, and predictive maintenance.
Blockchain
Blockchain allows secure data sharing among multiple parties. As airlines are becoming increasingly digitized, blockchain safeguards sensitive data and ensures operational safety.
Data Analytics
From flight schedules to passenger information to aircraft maintenance records, airlines generate big data. To mine this data and gain valuable insights out of it, airlines need machine learning. By harnessing the power of ML and data analytics, airlines can make more informed decisions, improve operational efficiency, and reduce costs.
Ways Coforge is offering a digital roadmap for airlines:
Modernized Passenger Service Systems (PSS): Coforge has successfully delivered twenty PSS migrations, mitigated risks, accelerated the implementation, and went live with our unique set of PSS accelerators.
Embracing Digital Retailing: Being an IATA strategic partner, we can help airlines define the roadmap, implement initiatives like OOM, and leverage technology to enhance customer experience.
Optimizing Crew Management: At Coforge, we offer system integration capability, based on our diverse crew product experience with CAE, Sabre, IBS, and custom mobile solutions. Our solutions can streamline crew scheduling, improve efficiency, and prevent disruptions.
Transforming Cargo Operations: Our expertise with platforms like IBS iCargo and SITA Champ Cargo, along with our involvement in developing COSYS+ with SATS, ensures modern and efficient cargo management processes.
If you want Coforge to be your co-pilot in the journey of digitization, connect with us.
