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IT Trends in the Aviation Industry 

  • September 2015
  • -
  • Frost & Sullivan
  • -
  • 53 pages

Summary

Table of Contents

IT Trends in the Aviation Industry : IT Systems in Aviation Continue to Be a Critical Component in Airlines Business Models

With air travel becoming more commoditized and airlines looking to optimize costs and resources, IT systems in aviation has become a critical component in airline business models. From passenger experience to maintaining the airlines, IT systems are being used to perform critical functions, track and maintain data, and provide analytics for better decision making.

Key Findings
-Air travel has become a commodity; more airlines are expected to obtain licenses to operate over the next few years. In Asia-Pacific (APAC), severe competition among airlines and abundant price options are making air travel more affordable to the burgeoning middle class. This provides tremendous opportunities to IT service providers.
-Low-cost carriers (LCCs) in APAC are significantly increasing their spend on reservation systems (> % YoY growth).
-The loyalty market in America, especially US and Canada, is mature with a high number of frequent flyer enrollments as well as accrual transactions, which on an average is more than 4 transactions per member.
-Single-function solutions will be superseded as airports work toward the goal of integrated, inter-airport data sharing. Demand is expected to increase for integration between diverse legacy and cloud systems.
-Airlines are looking to develop online platforms to reduce potential expenses, which may be incurred through distribution costs through methods such as GDS and travel agents.

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