What we have found in 2016 was a realization of some murkiness around airline business and the technology that forces them. The airline business has barely come out of a four-year beneficial streak power-driven by calculated expenses and lower fuel costs. A few airlines took the opportunity to make themselves over. The coming years will be challenging as fuel prices as well as labor costs are on the rise.
Technology platforms haven’t boiled down in price. Amazingly the airline business, have spent very little of their profits in technology than other industries.
The New Distribution Capability (NDC) ultimately attains grip, with 90 percent airlines looking to use it by 2020. In spite of all the gainsayers, its usefulness is now opening beyond the purpose as a distribution tool.
Ancillaries are beginning to go mainstream, but challenges persist. The global distribution systems (GDSs) and primary passenger service system (PSSs) have not been able to furnish innovative digital selling platforms. This reality still stalks the entire airline industry.
Airlines — especially the full-service network carriers — are all about their contemporary way of protecting their fragile! technology platforms. Low-cost carriers (LCCs) frequently have improved and have adapted more conciliatory platforms, nevertheless on a lower scale. Many network carriers have either anted up Ancillaries or are projected to acquaint it. Several LCCs are now awaiting to take part in the global distribution networks.
Artificial intelligence, machine learning, and cryptic learning will begin to make way into the technology platforms. Earlier we know there were some modest uses of these technologies in breaking down heavy data sets that the airlines possess. What’s needed is the introduction of low-cost services and the power to incorporate these into real-time solutions.
One thing that has come forth for airline business is the acknowledgement, that there has been an absorption of power in the intermediary marketplace. This will make them realize how a good deal the GDSs will render when 80% or more of their collateral business is going via four or five worldwide travel management companies. Airlines will be concerned about the cost of interacting with the meta search companies that deals with most air ticket conversions, precisely what Ctrip’s Skyscanner acquirement means that they are all stacked inside the same category.
The need for simplified ways to distribute any product to any channel instantly should be in the airline’s priority list in the coming years. The focus in the past was on the commercial front. Progressively, it will be on the operational and technology costs and other related controls. The search for alternative solutions to come forth that work out in all or in part is the challenge.
Mobile technology — while apps can be handy, but we already have enough of Apps in the market and it’s kind saturated now. Getting a customer to download an app onto his mobile device is too tough and expensive. It can be a futile effort since the lack of frequency of use makes it unnecessary.
APIs — Application programming interfaces will go on to rule the process. There has to be a minimum KPI as a guarantee that your service needs to meet in order to get API access. So just in case you explore on a flight metasearch website, it sends out a request to OTA’s and Airlines, and they will start a search on their side and return the results. For a choice of good API provider, one need to have the best expertise in the market. Integrating API will be the need of the hour.
Airlines will still find it hard to cope with the conception of open access to their cherished products. At that point there are a lot to be learned from different industries.
On that note, we at vafion hope you have a safe and prosperous 2020.If you have any queries regarding API integration fill in the below form, and our representative will get back to you.