HOW TO RETHINK DEMAND STIMULATION, OFFER RELEVANCY, AND INNOVATION PLANS

The new reality of flight shopping. A unique open industry summit.

In these small-group roundtables, FEATURED PARTICIPANTS industry leaders exchanged their perspectives on improving 20% customer sentiment in and on identifying relevant offers for the new realities of flight shopping. 15% Leisure channels New market conditions require tough conversations, both internal and with your partners. Any recovery timeline depends on our 15% Corporate collective ability to engage and move quickly. channels

How? 10% Agencies By rethinking demand stimulation, redefining relevance and experience, and re-engineering our paused innovation plans to use existing 40% Travel infrastructure. tech

DEMAND STIMULATION FOR THIS NEW CONSUMER MINDSET

Flight shopping behaviors have changed. Instead of starting with a destination in mind, leisure shoppers are looking for “We’re going to see places they can visit. Reassurance is now more important than inspiration. We can imagine shopping by type of a renaissance in destination—“beach,” rather than “Miami,“ for example. Shoppers are primarily concerned about the shifting real-time travel logistics of travel, such as quarantine guidelines (for both planners,” said outbound and return), as well as safety precautions and cancellation policies. Uplift’s Tom Botts. Demand generation needs to reflect this first new reality: Reassuring and winning trust comes before inspiration. • When it comes to business travel, “we have to take that • Don’t miss last-minute demand and mobile message beyond the traveler, to travel managers and opportunities. Amy Wei said Kayak is seeing travel decision-makers at corporations,” said Rob Brown “a lot of spontaneous trips…which means shorter at Southwest Airlines. He explained that Southwest held booking windows. Mobile conversion rates, townhalls with buyers and executives which helped to specifically on facilitated bookings, are increasing.” convey that “there are a lot of safety protocols being • For international travel, airlines are creating new put in place to help travelers to stay safe—not just in an “country/destination manager” roles to monitor aircraft, but on their way to the plane, in the gate area, regulations daily, even hourly, to understand and once they arrive in the next city.” who can fly. Vaccination could help to • The human factor is becoming more important as improve confidence. shoppers look for guidance on the new complexities of • Personalized targeting and positive stories on social travel. According to Roger Hale of Adtrav, the ratio of networks could improve conversion. “Suggesting online versus agent corporate bookings went from pre- visiting Facebook friends in specific cities would pandemic levels of 3:1, to everything through an agent make customers more likely to purchase (along with in April, to an even split nowadays. Some companies mitigating fears about money and health),” shared still haven’t switched their online tool back on. Expedia’s Assen Vassilev of CTW. Conducting post-travel Alyson Walton said, “The information that we have on customer surveys and spreading real traveler cleanliness and safety upfunnel is the highest clicks success stories could also help. [after the non-stop filter].”

Sharing aircraft and destination safety information, social network campaigns, a focus on mobile, and personal guidance could help stimulate demand right now.

A NEW DEFINITION OF RELEVANT OFFER

Retailing is still about tailored experiences—but what that experience looks like has shifted to include new attributes “We want everyone to think that like the seat next to you, COVID-19 certificates/testing, and is safe, and it’s better extra insurance. Participants agreed that safety should be addressed beyond if airlines are competing on the brand level. The entire industry needs to be consistently talking about it. everything else other than safety,” Another area of focus is the customer experience post-sale. said Piero Sierra • Customers want airlines to be able to refund fast, no matter where the ticket was purchased. at Skyscanner, • Seats remain what customers look for, but instead “on the leisure side of legroom or lie-flats, it’s an empty adjoining seat. Marketing could play a bigger role positioning that especially.” empty seat as “3 for 2” and focusing on the end-to-end experience.

• Changes in travel experience (like self-check-in and • Offers need to be about tailored experiences and making drop) are now an essential part of an sure passengers feel safe and comfortable. “There’s offer, along with the new attributes such as flexible never been a better time to make sure we’re equipping rebooking or bundled COVID-19 health insurance. passengers with the ability to choose for themselves • partners are noting demand for extended what they value and what they’ll pay for,” concluded booking windows, in addition to last-minute travel. Chris Engle of Plusgrade. Created by monkik from the Noun Project

Most consumers think about the safety of air travel in general, not by airline brand. Whether it’s for more space, check-in changes, or refundability, offers that are clear about what travelers will experience after the sale are critical.

AGILITY: THE KEY TO NAVIGATING A PATH TO RECOVERY

Load factors, capacity, and demand won’t stay low forever, so it’s strategically important for airlines and partners to improve the travel experience and pursue innovative “The world is slowing down technologies and strategies. and becoming a lower-risk • Current datasets and historical transactions can’t help predict patterns because customer behavior has changed laboratory, so we can test drastically. Revenue management datasets, models, and algorithms need to be reexamined. and accelerate all the things • Technology providers and airlines can control costs by that we have been wanting designing tech improvements over and around legacy systems instead of completely replacing them. and waited to do in the • Suppliers can consider “shared success” commercial models to reduce up-front investment burdens on airlines. last years,” • The industry can use this time to shift mindsets to said LATAM’s facilitate affordable innovation—leverage partners like startups and institutes, and design minimum viable Rosario Phillips. projects that work for most cases rather than every case.

Let’s use what we have, innovating on existing systems and working with partners to build new technology during this slower-moving world.

FEATURED PARTICIPANTS

It’s hard to talk about the new reality of flight shopping, but ATPCO strives to keep that discussion open to everyone in the industry so we can emerge from this crisis.

If you are ready to collaborate and innovate, or if you are looking for airline data, tools, or expertise, get in touch. Let’s get the world to travel again with confidence.