Welcome to this month's edition of airline industry news. Here's what caught our attention at Yieldr.
Skift's 2018 Megatrends Magazine covers 20 trends that will define travel and the larger business world this year. Airlines shouldn't settle for being "just" a transportation provider. Better e-commerce capabilities, more direct sales and the right offering of products and services are vital.
The Telegraph has shared some travel truths about which airlines fly with the most empty seats. Flybe, Austrian and Emirates were the 3 with the lowest passenger load factors at around the 76-77% mark, while the low-cost giant Ryanair had the most impressive PLF at 96%.
Revenue Management Systems seems to be winning deal after deal - all within the past 30 days! JetSmart, VivaColombia, TAR Aerolineas, AnadoluJet, Swoop, KC International and Royal Brunei airlines all announced that they'll be using airRM to manage their revenue, inventory and reporting.
With Qatar Airways as its new shareholder, Italian airline Meridiana has just changed its name to Air Italy in a move to overtake Alitalia as Italy's flagship carrier. Air Italy's plans also include adding 20 Boeing 737 MAX aircraft to its fleet over the next three years.
Are airlines ready to follow Uber's example? According to revenue management software provider PROS, a few airlines have already implemented dynamic pricing on ticket searches. This tech could be used to offer discounts and bundle fare offers, or in some cases show higher ticket prices.
Emirates president Sir Tim Clark had strong words about the need for airlines to include advanced technology as a core element of business, instead of treating tech as a side project. "Guys, there's a storm coming and if you get don't on it and deal with it you will perish." New tech must be embraced!
New Yieldr Study
Netflix has a superior ability to give personalized suggestions to users based on their viewing habits. This got us thinking - can airlines replicate the Netflix formula and automate personalized flight recommendations to travelers?
At Yieldr we analyzed 5 million ticket sales and found some interesting things about traveler flexibility. We think airlines can build upon our findings and combine passenger and revenue data to successfully recommend and sell tickets. Our blog post introduces the topic, exploring how the personalized approach will fill empty seats and maximize revenue.
You can open the full report in PDF format: What If Airlines Were Like Netflix?.
What's Happening at Yieldr
Last month we looked at the relationship between airlines and OTAs (Online Travel Agents). This time, we've identified 4 key action points for airlines to reduce their reliance on OTAs and improve direct sales. Find out more in our follow-up article about the future for OTAs and airlines.
We also published an infographic about global passenger forecasts for 2018. See the breakdown of expected passengers, load factor, net profit and revenues for the year.
Are you interested in our product releases? Stay up to date on all product updates on the Yieldr blog.
The Best of the Rest
- Which is the most overpriced flight route on the planet?
- India remains fastest growing domestic aviation market in 2017
- Volotea has grown 42% in 2017, carrying 4.82m passengers
- Boeing leads investment in new battery that could enable electric flight
- Where are airlines in the battle for online dominance?