Smartphones have changed the way we travel; Instead of reaching into our bags for guidebooks and paper maps, we now reach for our smartphones, and this increased connectivity is welcome news for airlines. The industry is expecting growth to dip for the first time in years due to slower GDP growth and rising oil prices. Many airlines are turning to mobile to build customer loyalty and help address the revenue shortfall.
In 2017, mobile bookings in the US were projected to generate $75 billion in revenue, an increase of 16.7% over 2016. If airlines are to overcome their struggles, they need that trend to continue. As they prepare for a mobile-first world, here are a few ways travel companies are expanding their mobile offerings:
Using apps for sales on the ground
Airlines commonly send push notifications through apps for important details like flight dates and check-in reminders. But push can also be used to offer ancillary services, which research shows make up almost half of leading airlines’ revenue.
Companies can use beacons to show hungry passengers where to grab a snack while waiting for their flight, offer lounge access upon landing or awaiting departure, or make car rentals.
Arming flight attendants with devices
Mobile improves the inflight experience by giving crew members instant access to a mountain of customer data. Attendants can know which food and drinks to offer frequent fliers, which passenger might appreciate a toy to preoccupy their child on long-haul flights, or who might want to buy duty-free items in advance for easy pick up at the airport. A number of leading airlines like Delta and Lufthansa have already outfitted cabin crew with devices and wearables to enable personalized customer service.
Landing the flight with retargeting
Retargeting has long been popular for app marketers, used mostly by online retailers like Amazon. Sellers on the site have seen sales double for products promoted through re-targeted ads. The same capability opened up for airlines in June 2016 through Facebook and Instagram’s dynamic ads for travel. These ads allow airlines to target a user based on route, schedule, and flight price. If a customer searches Delta’s site for flights to Tokyo, the airline could later show the user deals for the flight on Facebook and Instagram.
Staying relevant with boarding passes
Travelers rarely delete digital boarding passes once downloaded onto their mobile wallets. Marketers can use these passes to stay top of mind by turning them into coupons and discounts. Singapore Airlines, for instance, engages passengers up to a month after the flight with its Boarding Pass Privileges program, which includes exclusive dining and shopping promos throughout the city.
“Overall, I quite like the idea of thinking beyond the flight by offering all passengers, especially those in the economy cabin, boarding pass perks that let them make more of their stay in a city,” says Raymond Kollau of AirlineTrends in an interview with CNBC.
Showing customers where to go next
Airline customers in the US go on an average of two trips per year, and in the UK, three. And most of those trips aren’t meticulously planned—half of travelers don’t know where to go next after a trip ends. Promos like timely discounted fares paired with informative travel articles and videos can nudge customers to book another flight.
Travel isn’t the off the grid activity it used to be. Airlines can increase sales by reaching out to travelers over many points in their journey, from the moment they book a trip to when they land back home, already dreaming of their next destination.