Tailwinds provides an overview of the current state of the global airline industry. Part one analyzes the current industry and emerging trends from a global perspective. Part two examines airline distribution in a digital, data-driven world as well as taking a deeper look at the effect disruptors are having on the airline industry.
For long-term growth in cargo, one key question is: will the growth in e-commerce, with its promise of next or same-day delivery, cause a secular boost in air freight?
PwC’s consumer markets analysts see some short-term pressure for retailers to increase their use of air freight but, over the medium term, a different scenario is possible.
Data is often called the “new oil” for a reason: it can power dramatic cost cuts and more revenue in many industries, including air travel. Advances in analytics now enable carriers to mine data from distribution for cross-selling, customization, and more effective dynamic ticket pricing, among many other benefits.
Airline customers increasingly want a frictionless, seamless shopping experience that gives them expansive yet personalized offerings.
Meeting rising expectations requires new technologies and capabilities—and therefore new costs. Digital distribution also offers powerful new opportunities to win customers and draw value from the data that distribution creates.
With industry profits high, the time is ripe to invest not just in products, technology, and talent, but also in the culture and process that this agility requires.