Change is
in the Air
AIRLINES AND TRAVEL RETAILERS
CHALLENGED TO ANSWER THE CALL FOR
CONVENIENCE, CUSTOMIZATION & TRUST IN
TRAVEL – TODAY AND IN THE FUTURE
December, 2015
EXECUTIVE SUMMARY
The travel industry has changed tremendously over the past 20 years as a result of technology innovation,
consolidation and rising consumer expectations – with more change on the horizon.
Future success requires airlines and travel retailers to gain a deeper understanding of how customers
feel about the end-to-end experience today – from the moment they start considering a trip to when they
reach their destination – and what travelers expect and are most likely to willingly adopt in the future.
Boxever surveyed more than 500 travelers and found that:
Consumers are craving a more personalized and efficient travel experience.
But most are skeptical if the new technologies and approaches airlines are considering
would actually improve the customer experience.
Trust may be the biggest barrier to technology adoption.
Despite plans to roll out biometrics and other futuristic technologies across the travel
industry, fewer than 50% of travelers surveyed said they’d trust airlines with fingerprints
for identification purposes.
The in-flight experience could be the next window for the sharing economy.
Nearly 40% of travelers would consider partaking in in-flight services offered by other
passengers while flying.
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Loyalty programs are becoming a thing of the past.
Millennials are finding less value in membership and loyalty programs than older
generations, and only 28% of all travelers believe that being a member of a frequent flier
program leads to more personalized service and a better customer experience.
Reaching travelers is harder than ever.
Emails and mobile messages are easily ignored. Nearly 40% of consumers never even
check the clutter/promotions folder in their email. Only 22% check it daily.
Mobile advertising and targeting is hitting new roadblocks.
Nearly 70% of consumers surveyed said they’re likely or extremely likely to use adblocking apps on their mobile devices.
This report provides new intelligence around consumer sentiment toward the future of travel technology,
and critical insights for travel executives looking to advance how they connect with and serve travelers.
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2020 and Beyond: A Glimpse into the Future of Air Travel
While it’s hard to imagine what travel will look like 10 years from now, many new technologies and
approaches are being considered, including:
• Biometrics such as fingerprints and retina scans for check-in, security and boarding
• Robots that automate virtually all aspects of the airport experience
• Self-driving cars that take travelers to-and-from the airport
• A sharing economy for air travel where, for example, services are exchanged among passengers
• And travel websites that use advanced intelligence and predictive technology to automatically
book flights and travel based on personal needs, schedules and preferences
The likelihood and timing for rollout of advanced technologies and approaches like
these are unpredictable. However, consumer reaction to and perception of which
technologies and offerings are most likely to improve the travel experience should play
a critical role in guiding travel providers on where to focus first.
In-flight cabins and seating arranged by function – family area, business travel, sleep and entertainment,
for example – and biometrics ranked highest among travelers surveyed when asked about expectations
for which new technologies and approaches would most likely improve the travel experience. Slightly
more than a third of consumers surveyed believe self-driving cars, personalized in-flight digital magazines
that deliver relevant news, sports and entertainment, and travel websites that use advanced intelligence
to automatically book travel will have a positive impact.
Generally speaking, optimism around the benefits of futuristic technologies and approaches to the travel
experience vary based on demographics.
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Which futuristic technologies and offerings do consumers
believe would improve the travel experience?
Futuristic Technologies & Approaches
Men
Women
Business
Travelers
Leisure
Travelers
Ages
18-33
Ages
34-50
Ages
51+
Biometrics
58%
52%
61%
54%
55%
49%
65%
In-flight cabins/seating arranged by
function
51%
64%
47%
60%
57%
56%
56%
Self-driving cars
42%
33%
41%
37%
38%
37%
29%
Personalized in-flight digital magazines
39%
34%
38%
37%
37%
43%
28%
Travel websites using advanced intel to
auto book travel
34%
38%
37%
36%
36%
36%
38%
Robots
38%
25%
29%
32%
32%
24%
29%
Sharing Economy
23%
20%
20%
22%
21%
26%
12%
As airports and airlines look to the future and consider where and how they can improve the travel
experience, understanding consumer interest and optimism around new technologies and approaches is
just as critical as understanding what’s likely to hold them back.
Air Travel Executives Struggle to Put their Fingers on How
Travelers Feel about Biometrics
Biometrics is certainly a hot topic in the travel industry as airlines and airports consider integrating
fingerprints and facial recognition into the security, customs and boarding processes. But, according to
Boxever’s new survey, it may take longer than expected for travelers to get on board with the idea.
• Fewer than 50% of travelers surveyed said they’d trust airlines with fingerprints for identification
purposes
• Business travelers are 8% more trusting (55%) than those who self-identified as leisure travelers
(47%)
• Perhaps surprisingly, millennials (travelers 18-33 years old) are the least trusting of all of the groups
analyzed
Security is, without a doubt, a major concern for consumers when it comes to the use of biometrics. Of the
more than 50% who wouldn’t trust airlines with their fingerprints for identification purposes:
• 66% said they don’t trust airlines to securely handle sensitive and personal data like this
• 56% aren’t comfortable using biometrics unless it’s required
Perhaps most alarming for airline executives, for many travelers – the resistance goes beyond security
concerns. Of those who don’t trust airlines to handle sensitive and personal data like this, nearly half
(49%) also doubt the use of fingerprints would improve the travel experience. Millennials are even more
skeptical (51%).
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There’s a significant difference between how men and women feel about the use of fingerprints in air travel.
• 75% of men said they don’t trust airlines to securely handle sensitive and personal data, while that’s
true for only 56% of women
• However, women surveyed showed more resistance to using fingerprints in any situation, while men
seemed particularly concerned about airlines securely handling this type of sensitive information
Why wouldn’t you trust airlines with your fingerprints?
I don’t trust airlines to securely
handle sensitive and personal
data like this
I doubt a fingerprint-based
process would improve the
travel experience
I’m not comfortable using
fingerprints as identification
unless I have to
100
100
90
90
90
80
80
80
75%
70
60
56%
100
70
70
60
60
50%
50
50
40
40
30
30
30
20
20
20
10
10
10
0
0
Men
Women
50
36%
Men
Women
60%
52%
40
0
Men
Women
The resistance stems from a wide variety of concerns. Here’s a sense of what airlines are up against –
directly from today’s travelers:
• “[Airlines] aren’t equipped to properly handle fingerprinting; it would add a lot of cost and wouldn’t
help the traveler.”
• “I can’t change my Biometrics when they’re hacked.”
• “I don’t know the consequences of handing over that kind of information.”
• “It would take the same time to scan the boarding pass to scan my fingerprint.”
• “[Airlines] make so many mistakes already, they would likely mess that up too.”
Rising security concerns and an overwhelming lack of confidence in how airlines are handling other
aspects of the travel experience are likely to slow adoption of biometrics and other innovative and
perhaps controversial technologies until airlines figure out how to earn traveler trust.
Advancing the Travel Experience with Biometrics
While more than 50% of travelers said they wouldn’t trust airlines with fingerprints for identification
purposes, if, in fact, using fingerprints would expedite travel processes, enhance security and improve
the overall travel experience, the story changes:
• 64% would feel comfortable using fingerprints to get through security lines without the use of other
identification
• 61% would use fingerprints to check in for their flight
• 54% would ditch the boarding pass and use fingerprints to board the plane
• Only 33% would feel comfortable using fingerprints to pay for goods and services
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Imagining the In-Flight Sharing Economy
From Uber and Lyft to Airbnb, the sharing economy is taking over the travel industry, and it’s only a matter
of time before the in-flight experience starts to change. Looking 10 years out, more than 20% of travelers
believe that an Uber/Lyft approach to air travel would improve the travel experience.
While the complexities of setting up an Uber/Lyft-like arrangement for air travel are obvious, in the near
term, it’s more likely the sharing economy will first impact the in-flight experience through service sharing.
In fact, nearly 40% of travelers indicated they would consider partaking in in-flight services offered by
other passengers while flying.
Of the travelers that expressed an interest in in-flight shared services, here’s what would be in most
demand:
100
90
80
70
68%
60
50
40
37%
30
27%
23%
20
18%
17%
17%
Technical/
job training
Career
counseling
Mental health
counseling
10
0
Massage
services
Manicure or
pedicure services
Business
networking services
Haircut/beautician
services
Travelers have long looked for ways to stay productive and entertained while flying. As the sharing
economy and mobile-matching applications continue to become more ingrained in consumers’ lives, the
in-flight experience provides a perfect window for the convenience and productivity benefits that these
technologies provide.
Technology Innovations Transforming How Travel Providers
Engage Consumers
The need to earn and retain traveler trust permeates throughout all aspects of the travel experience – and
is growing increasingly challenging as technological advancements make it harder than ever to reach and
engage travelers.
Gone are the days when loyalty programs increased the chances a traveler would choose a particular
airline. In fact, only 22% of travelers surveyed said they care about whether a particular (preferred) brand,
carrier or hotel is offered when they’re making travel arrangements. In addition:
• Nearly 50% of travelers surveyed aren’t even members
• Only 28% believe that being a member of a frequent flier program leads to more personalized
service and a better customer experience
• And while hotels seem to be doing slightly better, still, only 31% of travelers surveyed believe that
being part of a hotel membership program provides a better, more personalized experience
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These numbers are likely to continue to decline since there’s a clear difference in membership among the
older and younger groups surveyed: 60% of those 51 and older are members of frequent flier programs
compared to only 43% of millennials. The spread is even more significant for hotel membership programs:
60% of those 51 and older are members compared to only 38% of millennials.
Since old-school loyalty programs aren’t driving loyalty with the majority of the
population, travel providers are really struggling to reach, engage, convert and retain
customers.
Complicating things further is the advent of ad-blocking technology on mobile devices. Nearly 70% of
travelers surveyed said they’re likely or extremely likely to use ad-blocking apps, and another 15% said
they’d consider it. Millennials surveyed are 10% more likely to use ad-blocking apps than those 51 and
older. The reasons:
•
•
•
•
61% said the mobile ads typically received are completely irrelevant
61% said mobile ads impede the mobile experience
56% said mobile ads typically received never add any value
51% said they’ve never taken action on a mobile ad presented to them
Mobile ad-blocking is the latest in a series of technology advancements that are fundamentally changing
how ad-blocking reach consumers. Consider how recent filtering changes to email programs have flipped
traditional email marketing practices on their head.
Nearly 40% of consumers never even check the clutter/promotions folder in their email,
and only 22% check it daily. The odds are stacked against every retailer out there,
including airlines, hotels and online travel agents.
For travel providers that need to capture consumers within a critical ‘booking’ window, it’s an even bigger
challenge. In order to win customers – and increase the chances that a consumer will read an email,
relevant and contextual marketing need to be a priority.
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What would it take for consumers to consider permanently moving marketing communications from a
brand into their primary inbox?
• 33% said they would consider moving a brand’s emails to their primary inbox if the email content was
consistently targeted to his/her needs and preferences, and not the marketing priorities of the company
• 33% would do so if the email content consistently added value by providing additional information,
offers and support around something he/she is already doing or planning
• 24% would do so if the email content consistently offered products, experiences, trips or services
he/she may purchase in the near future
The problem extends well beyond reaching consumers. Today, there’s a monumental gap between the
type of marketing and communication that consumers and travelers desire, and what they were receiving
from airlines and travel retailers. A Boxever survey from earlier this year found that for more than 50% of
consumers, three out of four sales offers received were irrelevant to their needs and preferences – an
incredibly high number considering the amount of customer data available to brands today.
This means that millions of consumers are being spammed daily, an ineffective communication strategy
that negatively impacts future sales, conversion rates, and customer loyalty. When consumers experience
this type of marketing:
• 40% are less likely to buy from that company moving forward
• 50% are less likely to open the next offer that comes from that company
• 59% said they would unsubscribe from that company’s content
• 31% indicated that they would delete that company’s app
Every email or text a travel provider sends is an opportunity to win or lose a consumer’s trust – and has a
significant impact on whether the next message will be opened or ignored.
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Rising to the Challenge: Technology in Stride
Advanced technologies and approaches in air travel present tremendous opportunities for airlines and
travel retailers to improve the end-to-end travel experience, compete more effectively, and earn consumer
trust, confidence and loyalty. At the same time, new and evolving technologies are crippling travel
providers, making it harder than ever to reach, influence and engage travelers.
To break through, travel providers need to deeply understand consumers, their preferences and
expectations throughout every stage of their journey, delivering meaningful information, insights and
offers that improve the customer experience and establish the kind of trusting relationships that keeps
travelers coming back.
Up Next
Are you looking to advance the way you communicate and market to your customers?
Download the report “Grounded by Untargeted Marketing” to see how consumers want airlines, hotels
and travel providers to engage.
The report provides strategies for increasing conversion rates, improving engagement,
generating revenue and creating a more personalized customer experience.
Download: “Grounded by Untargeted Markting”
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About Boxever
Boxever’s cloud-based data science, customer intelligence and predictive marketing
platform helps travel retailers, such as airlines and online travel agents (OTAs), deliver
personalized, 1:1 marketing experiences to their customers across all channels and at all
stages of the customer lifecycle.
Companies like Air New Zealand, eDreams ODIGEO, Tigerair, Wideroe, and more achieve higher
conversion rates, increased revenue, and improved loyalty using Boxever’s SaaS-based platform. The
company is headquartered in Dublin, Ireland, and its U.S. office is located in Boston, MA.
Learn more at www.boxever.com
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Find us at:
Web: www.boxever.com
Email: [email protected]
Twitter: @boxever
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