Special Report: Aviation Technology
More airlines focusing on business intelligence
September 1st 2013
It hardly represents a bonanza, but airline spending on information technology (IT) is picking up after several years of flat performance following the global economic crisis of 2008. Read More »
The level of IT operational spending at airlines worldwide should reach an estimated $10.8 billion in 2013, up from $9.9 billion in 2012, according to IT supplier, SITA, in its annual trends survey.
Some 58% of airlines have said they would spend more this year on IT. The global investment represents 1.52% of total revenues, up marginally from 1.46% in 2012. The majority of carriers anticipated another increase in the airlines’ IT budget in 2014. IT spending, however, has not returned to the 2% plus levels of pre-2008.
According to SITA, airlines are stepping up their investments in business intelligence (BI) and mobile applications, to assist better interaction with customers and improve personalized services.
All airlines surveyed planned to invest in BI solutions. In 2012, one in five carriers said they had no plans to invest in BI.
“We see a strong desire among airlines to increase revenues, using techniques borrowed from the retail industry, including personalization,” said SITA chief executive, Francesco Violante. “Nearly three quarters of airlines rate BI for sales and marketing as a high priority. The airlines’ investment plans show the future of the industry is smarter, more mobile and more personal.”
In the next three years, about 97% of airlines said they plan investments in mobile passenger services and personalization because it would boost ticket sales through direct channels from the present 54% to 67%.
The carriers expect ticket sales through mobiles to be worth more than $70 billion by 2016 or 10% of total sales, up from below 3% today. Violante said mobile functionality “is emerging as a new battleground as airlines try to differentiate passenger services”.
