Flying less is one of the best ways to reduce emissions, as there are so many airlines trying to meet net-zero emission targets. However, this is counter to the business model of most airlines, which encourages employees to fly more to grow their business and increase revenue. This is not a sustainable way to do business. Artificial intelligence (AI), could be a circuit breaker that encourages people not to fly as much but who do fly more.
“COVID-19 offered the opportunity for airlines to reorganize their business so that it has positive impacts on the environment,”Mike Slone, Vice President of Travel Retail at PROs of AI software company. “Airlines have the opportunity to use AI-driven insights in order to keep up with the trend to take fewer, longer trips. They can also advise customers and make their booking experience more personal and responsible.
COVID-19 slowed passenger demand around the world. Some markets and market segments are rebounding faster than others. In February 2019, the availability of seats was only 11.3% lower in North America than it was in February 2019. It was 48.6% lower in the Southwest Pacific.
These numbers have a lot to with travel restrictions and border rules. The human factor is also important – many people make conscious decisions to fly less. That decision is driven more by health than economic factors. This reluctance is likely to decrease over time. IATA, the airline trade group, predicts that airline passengers will surpass pre-pandemic levels in 2024.
What next? After years of losses, airlines will be looking for revenue and fuel-efficient aircraft won’t do enough to help them reach their net-zero goals. Mike Slone believes that new traveler profiles are emerging. These include the ‘bleisure traveler,’ who adds personal time and business trips to their schedules, or the ‘worker nomad traveler, who stays longer in destinations and travels more.
PROs identified new types and more sustainable travel patterns that airline AI can harness. Getty Images
Airlines can use AI to sell far more than just flight tickets
Innovative airlines can use AI to target these new types of travelers. They interpret data to determine where they stay, what they do there, and how often they fly. A smart airline can offer more than just a flight ticket and increase per-traveler revenue to offset the loss of less flying. This is known as a quality over quantity approach.
“Airlines could reward travelers by offering lower prices for those who take fewer flights.” Mr Slone suggests.“If there are three days between your flight, the price will be higher than if you stay two weeks.”
Although this may seem counterintuitive given the current way most airlines operate, AI can be used by an airline to sell accommodation, flight upgrade, or to build in ticket flexibility. It could be cost-neutral or even profitable for the carrier.
AI can change the way airlines interact, how they sell, and what they offer their passengers. Photo: Ontario International Airport
Changes in how airlines approach passengers
It’s a great idea, but it all depends on AI in the airline industry becoming smarter and more intuitive. It also depends on airlines adapting to this trend and continuing to fly less. It is unlikely that any of these things will happen.
Mike Slone admits that artificial intelligence isn’t yet perfect, especially for legacy airlines with clunky back system, but he insists it is the future of the airline business. Although it will take some time, Slone suggests that AI will be critical in minimizing airline operating expenses and maximising revenue while still adhering to environmental goals. Slowly, passengers will be able to board planes with AI from airlines.
“The majority (of all) airlines using AI are just scratching their surface, and they are often the largest.”He adds. “It is crucial for airlines to be able to offer digital retail and digital deals that give customers the modern, flexible booking experience they want. This way of thinking is becoming more popular..”
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