Imagine if airport desk agents had to work without a computer system, taking customer information by hand and physically shuttling updates between different departments. This is unimaginable for a reason – the global aviation system would grind to a halt – yet there is still one aspect of air travel that relies almost exclusively on manual and offline processes: the re-accommodation of passengers stranded due to irregular operations (IROP), which requires re-ticketing, generating vouchers and booking hotels.

Travel has never been more rewarding – or more complex – than it is today. Frequent flyer programs are still wildly popular, but airlines are also expanding and diversifying the ways in which they generate ancillary revenue – and that means more partners, more channels and more complexity.

Since the early 2000s, the travel industry has been re-inventing itself with new visionary companies, new channels for selling travel and new strategies for engaging customers. The Internet made air fares, hotel rooms, car rentals and other travel inventory readily accessible to independent travelers. New “dot-coms” created booking engine websites where travelers could plan and book their own trips – this was the beginning of online travel agencies. Today, mobile booking is once again re-inventing the travel industry. However, as the travel industry becomes more complex, it’s harder for partners, channels and systems in the ecosystem to connect and communicate.This was the beginning of online travel agencies. 

Switchfly recently attended Aviation Festival in London, September 6-8. We collaborated with Iztok Franko from Diggintravel to host the Airline Merchandising Lab – a hands-on set of demos and experiments showing how ancillary merchandising works in a real-world booking engine. The problem we hear time and again is how hard it is to actually implement an ancillary merchandising strategy that drives conversions and grows revenue. That’s why we created the Airline Merchandising Lab for Aviation Festival. If you were there or if you were unable to attend, here’s a post-conference reflection by our partner Iztok.

For the past five years, airlines have remained profitable by finding new ways to increase passenger capacity, unbundle fares and generate more ancillary revenue with baggage fees, á la carte services, and frequent flyer programs. However, there is still one thing customers are not happy about: the fee to change a flight, which can cost $200 on average.

There are many places and companies where you can develop software – anywhere in the world, really – but there just a few “hot spots” where tech is booming. You know them already – San Francisco, Denver, Austin, Portland, Seattle. All great cities with tremendous talent and innovation, and thriving communities where you’re challenged to do work you love and live life to the fullest.

For airlines, flight delays and cancellations for non-weather related reasons are a costly ordeal and a logistical nightmare. These disruptions – known in the industry as “irregular operations” (IROP) – ruin travel plans for hundreds of millions of passengers each year in the US. In the first half of 2017, one in three cancelled flights in the US were due to IROP. 

Over the past few months, Switchfly has been part of the conversation on the future of travel industry loyalty programs. In fact, Switchfly has been covered in a whopping 23 articles in August alone! To join the conversation, read our ongoing coverage or contact us directly with your thoughts!

Switchfly Survey: Travel Loyalty and Technology Platform Discovers that Travelers Select In-Room Wi-Fi as Number One Travel Ancillary

Americans also care about ground transportation and airport shuttles and think loyalty points are key to booking travel