90% of decision-makers in the airline industry chase digital transformation. And for a good reason – 75% of passengers are comfortable sharing personal data to get better travel experiences.
Do you catch up on this trend or stay behind? If your answer is yes, this guide is for you.
We’ll walk you through airline digital solutions that streamline airport security, optimize flight operations, and support touchless communication. The global digital aviation market will reach $65.11 billion by 2029, and you can be a part of it – by selling airline tech to other companies or implementing it into your own operations. But before you do, let’s figure out how airline digital transformation makes a difference.
From digital aviation to digital airports: How airline industry solutions change the game
Picture an airport where touchless technologies dominate. The main purpose is a more human-centric experience. Smart restrooms with touchless flush technology and modern restroom signs reduce contact points, enhancing hygiene and safety. Push-pull signs for glass doors with smart sensors create a more intuitive navigation experience, while airport digital signage provides real-time, personalized information. This is probably the best way to describe the digital airport transformation era, where technology reimagines the entire travel experience.
There are many historical reasons for this. Pandemic-induced health concerns caused the need for contactless solutions, accelerating the speed of implementing digital technologies for communication, check-in, and in-flight catering. Today, there is also a growing demand for personalized experiences and psychologically safe travel with the raging political turbulence (the Russian war in Ukraine, changing political forces in the US, and other events).
The perfect storm of changing consumer expectations, technological advancements, and global challenges drives an urgent need for innovative airline industry solutions.
Airline tech for customer experience
Mobile apps, AI-powered chatbots, and contactless technologies streamline everything from check-in to boarding. With digital technology, the traveler’s smartphone becomes their digital passport. Technology now allows travelers to:
- Check-in in seconds with their biometric data.
- Get real-time flight updates and avoid last-minute cancellations.
- Navigate airport terminals with AR wayfinding and choose the best seats.
- Never lose baggage with AI detection of QR codes.
- Access personalized entertainment recommendations.
Are the passengers happy about it? Despite the idea of digitalization meaning that airlines obtain more of their private information, they actually are, but only if it gives them perks. 75% of them prefer using biometrics over traditional passports and boarding passes. Where did all concerns about sharing sensitive information go? We don’t know, but we like how it plays out.
This process is accelerating fast. SITA's 2023 report indicates that airlines invest $34.5 billion in IT, and over two-thirds of CIOs expect continued technology spending in 2024. Pretty promising start for the digital airline era.
Airport process optimization
Airlines use IoT sensors and sophisticated algorithms to transform how aircraft are monitored, maintained, and managed. Real-time performance tracking lets carriers detect mechanical issues before they become critical, with sensors continuously analyzing everything from engine performance to fuel consumption.
What’s more, modern AI-powered route optimization systems analyze complex variables like weather patterns, fuel efficiency, and disruption risks, enabling airlines to make split-second decisions that save time and resources.
The impact is remarkable: IATA reports a 30% reduction in aircraft reactivation times, while maintenance-related ground time has been slashed by 20%, translating into significant cost savings and operational efficiency.
Revenue management transformation
Modern revenue management systems are light-years beyond traditional pricing strategies. Why? They run on statistical models that analyze everything from historical booking data to social media activity and search trends.
Dynamic pricing is the secret weapon. It’s a concept of ticket prices that shift based on demand, time of day, seasonal trends, and competitor routing. Airlines can increase prices during peak demand or slash them to fill empty seats during slower periods. Platforms like PROS and Amadeus Revenue Management use advanced algorithms to optimize pricing strategies, growing revenue by 6-7% compared to traditional methods.
While IATA admits many airlines are still using decades-old pricing models with just 26 booking classes, the future belongs to those who unlock data-driven insights.
Sustainability at the heart of airline transformation
These days, travel sustainability is much more than marketing noise. 71% of travelers want to travel more sustainably, and now they can. Travelers now see their flight’s CO2 footprint and know how the chosen airline contributes to offsetting carbon emissions. As a consumer, you don’t need additional software to get that info – you can see it straight on Google Flights or any other website. It’s the airline companies who take care of providing that info.
Some companies develop suites of ML-based solutions that help airline businesses reduce carbon emissions. For instance, CarbonSuite offers an AI Data Scanner that automates emissions data collection, saves 90% of the time on emissions tracking, and delivers 70% more accurate datasets. Net0 created an emissions tracking platform with 10,000+ integrations. You can calculate emissions across Scopes 1, 2, and 3.
Now, it's time to dig into the details of how each technology improves specific processes and the advantages they deliver.
