06 Jan Aviation Industry Change Report: Transformation 2021
The Transformation 2021 report, which examines the transformation of the aviation setter due to the pandemic, has been published in collaboration with IeaWorksCompany and CarTrawler.
The pandemic has taught us that competition does exist for the air travel spending by leisure and business travelers. Airline consumers identified alternatives during the pandemic and the best of these solutions will have staying power for the future. This 15-page report describes how the industry has changed and provides ideas on how revenue can be increased and more traffic can be captured. Many of the habits formed by travelers during the pandemic will be enduring and are reflected in the perspectives covered in this report:
- Network airlines will focus on leisure travel
- Business will be more a la carte and premium economy will grow
- Airlines will be enticed by branded fares and dynamic pricing
- More effort will be made to improve buy-on-board food
- Carriers need to provide protection from uncertainty
- Border closures are here to stay
“While airlines have proven their resilience over the past year, in 2022 brands must evolve the consumer experience to stay competitive in the market,” said Aileen McCormack, Chief Commercial Officer at CarTrawler. “Airlines will need to shape offerings around what consumers really want – convenience and predictability – whether it’s through their pricing models, a la carte offerings or approach to travel insurance.”
The report also predicts that the majority of business travel will return as the pandemic recedes, but a portion of airline trips will be replaced by technology. The emphasis on leisure destinations and planning smaller business class cabins reflects the direction network carriers are taking.