businesstraveller.com NOVEMBER 2018
AVIATION
39brought greater choice and cheaper tickets, but sometimes
less comfort as airlines pack more passengers into the same
space. Space can no longer be taken for granted, even on
established carriers; legroom in economy shrinks while
the more profitable premium economy, first and business
classes expand. As technolog y hastens the advent of
ultra-long haul aircraft, which can currently f ly non-stop
for 17 hours, this will raise new issues, including health
and safety: spending a day in an economy seat may not be
appealing or even feasible for some.WHAT IT MEANS FOR
PASSENGERS
Consumers have seen the impact of
disruption in aviation more than in
many other industries. The variety
of options available today would
have been unthinkable only a few
years ago. On the one hand, there
are fully enclosed suites available
in first class; on the other, some
airlines are charging for water.
Given the cyclical nature of
most economies, airlines face the
challenge of finding sustainable business
models that attract consumers, but are
also profitable. What innovation we will
see over the next ten years will also depend on
the increasingly high expectations that demanding,
but fickle, travellers continue to set. The hope is that
competition will improve customer experience, and new
airlines will continue to launch.
Paradoxically, without state support, many well-known
legacy and national airlines would fail; and without
regulation, mergers would reduce choice and perhaps
competition. We all want to enjoy the best service (and
safety) for the lowest price, yet we frequently complain
about what we receive. These complaints tend to be most
oten directed at the airline and often through social
media, but the overall industry may also be to blame;
and behind that, governments; and perhaps, ultimately,
ourselves. Disruption is inevitable, but we need to realise it
is partly driven by what we, the consumers, demand.2017, but the brand lives on under Virgin Australia as that
airline’s competitor to Jetstar.
Scoot, Jetstar, Joon, Level, Eurowings and Norwegian
all offer a premium cabin partially aimed at capturing the
cost-conscious corporate market, particularly SMEs. More
“premium economy” than “business” ( Joon excepted), it’s
not yet clear how disruptive this will be, with customers
facing more choice than ever. The strateg y isn’t new –
British Airways tried it short haul with Go, and United
with Ted; both cannibalised their parent’s products,
lowering proits, and so these sub-brands were dumped.
GOOGLE FLIGHTS TAKES OFF
All this comes at a time when airline-related technolog y
is also subject to enormous change. Just when the likes of
Expedia and Skyscanner felt they had consolidated their
positions, in 2011 along came Google Flights – which
allows users to track prices, check pricing graphs, and
factor in alternative dates and f light options at alternative
airports. While this is happening, Google is able to collect
(and react to) data already available from the booker’s
use of the search engine, something most other sites
(including the airline’s own) can’t do, giving Google
an advantage.
Technolog y is important for most frequent travellers.
IATA’s 2017 Global Passenger Survey found that
passengers expect technolog y to give them more “personal
control over their experience”, with aviation think tank
CAPA (Centre for Aviation) reporting that the “majority
of passengers just want to get through the airport as fast
as they can”. It explains why traditional check-in desks are
almost retro in 2018, with smartphone check-in followed
by automated boarding oten replacing human contact.
Technolog y also presents a challenge to travel
management companies (TMCs), who are being forced
to present their customers with solutions that provide a
similar level of immediacy and f lexibility throughout the
travel management process. In the case of direct bookings,
where the technolog y reduces the number of staff needed
and can often cut costs for passengers, for a TMC it’s an
extra facility to provide that has no impact on stafing
requirements. The added expense is then passed on to
consumers, in the short term at least. Disruption has
Without state
support, many
well-known legacy
and national
airlines would fail