In recent
years, some airlines have discovered the importance of focusing on the customer
journey and engaging at every touchpoint to improve customer satisfaction,
build loyalty and increase revenue. But airlines can’t do it all. They must concentrate
on what they do best and call on trusted partners to further enhance the end-to-end
travel experience, as well as meet critical operational, financial and brand
objectives.
A recently
published PhocusWire white paper, “Aligning the Travel Company Around the
Customer Journey,”
details the benefits of
customer-centricity:
- A one-point
customer satisfaction improvement on a 10-point scale corresponds to at least a
3% increase in revenue. (McKinsey) - 80% of
customers say the experience provided by a company is as important as the
products and services. (Salesforce) - Modest
improvements in customer experience performance led to a 34% increase in future purchase
intentions. (Qualtrics)
The report
says airlines must map the journey, collect customer feedback and provide
systems for sharing information across the organization “to build a more
customer-centric brand.”
Mapping the
airline customer journey
Plotting the
customer journey is a very individualized exercise. “In travel,” the white paper
says, “this journey often aligns with the travel journey (e.g., dreaming,
planning, booking, pre-trip preparation, traveling, post-trip). However, the
specific touchpoints and points of contact will be unique to each brand.”
Thus, the
airline customer journey (depending on the airline) could consist of at least
six major touchpoints, which can have a profoundly positive impact on the
customer experience when airlines optimize engagement effectively:
- Pre-booking period,
when customers are thinking about travel and researching destinations and costs - Booking and
confirmation phase, which involves making reservations, selecting seats and
purchasing tickets - Pre-travel interval,
in which airlines convey essential information about upcoming flights to
customers - Airport time,
during which customers check in, drop off luggage, pass through security, access
airport services and board the aircraft - In-flight
experience, which includes food and beverage service, entertainment and
connectivity - Post-flight
point, when travelers claim baggage, access ground transportation and provide
feedback
Embedding
partners in the customer journey
To optimize
the customer experience, airlines need help from a diverse ecosystem of
partners. For example, in the pre-booking phase of the customer journey, airlines
align with technology providers, online travel agencies (OTAs), metasearch
engines, loyalty partners, content creators and payment companies to help
travelers discover destinations, compare costs and make confident booking
decisions.
Codeshare partners,
credit card companies, payment gateways (Visa, Mastercard and PayPal) and
“buy now, pay later” providers facilitate booking and confirmation.
Software firms that provide booking engines, APIs and integration platforms connect
airlines with travel agencies, OTAs, insurance companies and other suppliers to
provide real-time inventory, seat selection and ancillary service options
during the booking and confirmation stage.
Airlines lean
heavily on communication technology providers, voice assistant platforms
(Google Assistant, Alexa), data analytics firms and industry standards organizations,
such as the International Air Transport Association, that have the existing infrastructure to deliver timely,
personalized and accurate pre-travel communications to passengers.
Airlines also
collaborate with airport authorities, security agencies, lounge operators and
ground handling companies to streamline the in-airport passenger experience.
For example, American Airlines recently partnered with United States Customs and Border
Patrol. As part of the One Stop Security program, passengers arriving from
select international locations will no longer have to claim their checked
baggage before connecting to another domestic American Airlines flight.
In-flight
experiences, especially for premium-class travelers, are also rapidly evolving.
Airlines look to catering companies, restaurant and brand partners,
entertainment and connectivity providers and amenity brands to deliver memorable
experiences to customers. For example, Delta partnered with the Shake Shack
burger brand, and United brought Magnolia Bakery on board to change the food and
beverage offerings for passengers.
Baggage
handling and delivery firms that allow customers to pre-book baggage delivery
to their homes or office, airport transfer services, including ride-share services,
survey firms and claims processing partners enable airlines to pick up where
they left off in meeting post-flight passenger needs at the airport.
Some airline partnerships
provide benefits to travelers during multiple travel touchpoints. Allianz
Partners assists airline customers with its Allyz digital platform, which allows
travelers to keep all trip itineraries, boarding passes and event tickets
(for multiple airlines and destinations) in one place, access 24/7 global
customer support for medical and travel emergencies and receive
destination-specific safety and security alerts. Users can also view their
travel insurance policy details and manage their claims through the Allyz app.
In addition
to enhancing the customer experience, partnerships with third parties,
including hotels, rental car companies, insurance firms, technology providers
and others, have a significant impact on airline revenue. In
2023, the world’s top ten airlines generated $54.1
billion in ancillary revenue, defined as “revenue beyond the sale of
tickets that is generated by direct sales to passengers, or indirectly as a
part of the travel experience.”
Addressing travel
friction
Airlines and
passengers feel (and appreciate) their partners’ presence even more when travel
plans go awry. Over the years, inconveniences that have caused friction for
airline travelers, such as flight irregularities, lost luggage and delays in navigating the airport,
security and boarding, have increased the complexity of air travel. Airlines
and their partners are providing innovative solutions to address the disruption.
American Airlines is using a new
boarding system technology at select airports. It uses audio alerts to
deter passengers from cutting in line during boarding. The technology “leverages
algorithms that analyze video feeds in real time, triggering an audible warning
when someone attempts to board outside their designated group.” By automating
passenger boarding this way, the airline hopes to create a fairer and more orderly
process.
Last year, United Airlines announced the integration of Apple’s Share Item
Location feature for Air Tag into its mobile app, “a move that’s expected to drive a
much-improved customer service experience for the fewer than 1% of customers
whose bags arrive on a later flight.” The feature enables United customers who
travel with an AirTag or Find My network accessory to share the accessory
location with the airline’s customer service team to help locate their luggage.
In
partnership with Alaska Airlines, Allianz Partners offers Alaska
guests travel insurance benefits and assistance services. In addition to
standard travel insurance that protects against trip cancellation and interruption and covers
emergency medical and dental care expenses, Allianz Partners also proactively
compensates Alaska guests who purchase travel protection for certain kinds
of travel disruptions—without travelers needing to file a claim. For example,
guests can receive immediate reimbursement for meals, hotels and other
expenses associated with a flight being delayed for more than two hours due to
a covered reason.
Partnerships,
customer experience and more
Partnerships
are integral to the airline customer journey. They enable airlines to deliver customer
experiences at a higher and deeper level than they would be able to do alone by
optimizing engagement at multiple touchpoints, contributing data and insights,
closing service gaps, mitigating disruption, providing specialized services and
delivering innovation. Making a concerted effort to expand the number and scope
of high-value partner relationships and choosing partners that offer unique, innovative
and customer-centric services is the key to customer loyalty, airline profitability
and brand strength.
NOTE: For Allianz
Partners USA products offered and sold in the U.S.: Terms, conditions, and
exclusions apply to all plans. Plans are available only to U.S. residents. Not
all plans are available in all jurisdictions. Availability of coverage,
including the epidemic-related benefits and covered reasons described here,
varies by product and by state. Products may not include all benefits or
covered reasons described here. All benefits are subject to maximum limits of
liability, which may in some cases be subject to sublimits and daily maximums.
Benefits and limits vary by plan. For a complete description of the coverage
and benefit limits offered under your specific plan, carefully review your
plan’s Letter of Confirmation/Declarations and Certificate of Insurance/Policy.
Insurance coverage is underwritten by BCS Insurance Company (OH, Administrative
Office: Oakbrook Terrace, IL), rated “A” (Excellent) by A.M. Best
Co., under BCS Form No. 52.201 series or 52.401 series, or Jefferson Insurance
Company (NY, Administrative Office: Richmond, VA), rated “A+”
(Superior) by A.M. Best Co., under Jefferson Form No. 101‐C series or 101‐P
series, depending on state of residence. A+ (Superior) and A (Excellent) are
the 2nd and 3rd highest, respectively, of A.M. Best’s 13 Financial Strength
Ratings. Except as otherwise specified, AGA Service Company d/b/a Allianz
Global Assistance is the licensed producer and administrator of Allianz
Travel-branded travel protection plans in the U.S. and an affiliate of
Jefferson Insurance Company. Allianz Global Assistance is a mark of AGA Service
Company or its affiliates. The insured shall not receive any special
benefit or advantage due to the affiliation between Allianz Global Assistance
and Jefferson Insurance Company. Plans include insurance and assistance
services. Noninsurance benefits/products are provided and serviced by Allianz
Global Assistance.
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