Amadeus has released research showing that carriers could increase traveller transactions by up to Euro 35 through airline merchandising techniques.
The Thinking Like A Retailer study, conducted by Frost and Sullivan, says airlines need to be using data, they are already collecting from social media, mobile application and inflight connectivity sessions, to create a single view of the customer.
The study also reveals customer willingness to purchase from airlines with 79% of travellers saying they would prefer to buy extra travel services from an airline.
Currently airlines are earning an average of Euro 10 per passenger from additional services although it seems consumers feel 'squeezed rather than served' by existing services such as seat charges and excess baggage fees.
When it comes to the best time for consumers to consider additional services more than 50% say the time of booking followed by before the flight for 30% and on check-in for about 20%
Interesting to note that 25% say once they are back home and thinking about their next trip therefore providing airlines with an opportunity to extend the relationship with customers.
The report also shows traveller interest in types of offer versus airline interest.
- 50% of travellers are interested in value-added bundles verus 98% of airlines
- 34% of traveller are interested in a la carte services versus 95% of airlines
- 22% of travellers are interested in personalised packages versus 83% of airlines.
The figures demonstrate the importance of providing consumers with relevant offers and making them easy to understand and purchase.
When it comes to contact methods, 76% of travellers say they are interested in context-aware email compared with 83% of airines and 49% of travellers show interest in push notifications compared to 95% of airlines. The correlating boost to conversion is revealed as 5% and 10% respectively.
However, privacy continues to be a concern with 51% saying they only want to be contact if they have specifically given their permission while 16% say they do not want to be contacted at all.
A breakdown of the most important merchandising methods is also provided with easy-to-access and use channels such as website and mobile coming out top followed by context-aware email, promotions and third party offers, push notifications and bundled services.
The study was put together using responses from more than 300 travellers in the UK, US, Brazil, Germany and Singapore as well as interviews with airline executives. Half of respondents were aged 20 to 39 years and half more than 40.
The study was released during the Amadeus Airline Digital event in Madrid.
NB: Airline cabin image via Shutterstock.
NB2: Disclosure - flight and accommodation for the author's attendance at the event was supported by Amadeus.