Payments are one of the airline industry’s most potent tools to increase direct distribution, grow revenues and reduce costs. And yet, based on the proprietary research conducted by Atmosphere Research, it’s clear that airlines don’t fully utilize payments as the strategic asset and enabler of creativity that they are.
Datalex engaged Atmosphere Research Group to benchmark how airline leaders view payment in terms of its criticality in their digital eco-systems, and to determine how alternate currencies could impact their business.
The research involved comprehensive telephone interviews (60 minutes-plus), with 19 airline executives at 10 network and low-cost airlines in North America and Europe. The interviews – the first of a two-part research effort, and more qualitative than quantitative in nature – were intended to help develop a high-level SWOT-like understanding of how airlines use payments in their marketing, sales and distribution efforts.
The interviews were conducted with the guarantee of complete confidentiality and anonymity for the participants. Among the topics we sought to understand are:
- whether airlines view payments as strategic tools or tactical instruments;
- which forms of payment airlines utilize now, and what is their ‘market share’;
- whether payments enable or inhibit airlines from introducing new products;
- and to learn whether ‘virtual currencies’ (e.g. loyalty program credits and travel vouchers) offer airlines opportunities to both reduce costs and improve passenger preference and retention.
To find out more, download the full report.