SITA’s 2023 Air Transport IT Insights report has revealed that both airports and airlines saw information technology (IT) spend increase year-on-year into 2023, reaching an estimated US$10.8 billion and US$34.5 billion respectively, with over two-thirds of airport and airline chief information officers (CIO) expecting continued growth into 2024.
Airports also boosted IT spend as a percentage of revenue in 2022 and 2023 even as business benefitted from an uptick in travel demand, signalling just how crucial a role technology will play in the next-generation travel experience.
Aviation CIOs’ key investment priorities include a biometrically enabled passenger journey, leveraging data to unlock operational efficiencies, and green solutions to optimise energy consumption and emissions.
From a seamless passenger experience to optimised operations
Airlines and airports have made strides in optimising the passenger experience, with over half having implemented IT to improve efficiency across check-in, bag tag, and boarding in 2023. Biometrics are becoming commonplace to help curb congestion, with 70 per cent of airlines expecting to have biometric ID management in place by 2026, and 90 per cent of airports investing in major programmes or R&D in this area.
CIOs are now looking to supplement passenger processing advancements with innovative solutions on the operations side. To boost efficiency, protect operations against disruption, and streamline processes for both passengers and staff, CIOs are embracing IT solutions for business intelligence (BI), artificial intelligence (AI), and data sharing.
BI is the biggest area of technology investment for airlines in the coming three years, with 73 per cent investing in major programmes. Nearly two-thirds of airports and airlines collect and integrate data, and with the rise of generative AI, they are now looking to AI and machine learning to leverage this data and generate insights. With most citing the “use of data to improve operational efficiency” as at least somewhat of a business challenge, it makes sense that 97 per cent of airlines and 82 per cent of airports are investing in AI by 2026.
David Lavorel, CEO of SITA, said: “As we approach a full recovery of passenger demand for air travel, with domestic travel even surpassing pre-pandemic levels in some regions, airlines and airports have learned from the congestion and disruptions seen in the past two years. Advanced data sharing and analytics tools will allow them to unite stakeholders and identify opportunities for greater efficiency and leaner operations. Solutions like total airport management and BI for passenger processing provide airports and airlines real-time insight into the management of assets and passenger flow, allowing for agile, collaborative responses to any disruptions.”
Smart IT to improve sustainability
Sustainability is also high on the agenda, with industry milestones for carbon reduction as well as regulations on emissions coming into view. CIOs are setting their sights on technology solutions that can deliver concrete emissions reductions.
By 2026, over 90 per cent of airlines plan to have IT in place to boost the efficiency of flight operations and aircraft turnaround. More than half have implemented IT to optimise both aircraft taxiing and the take-off/landing and cruise phases of flights, with nearly all expecting to have this in place by 2026.
On the airport side, building and energy management systems are a key priority for offering a unified view of emissions and opportunities to reduce them. Investment in energy management systems is expected to grow the most of any airport sustainability initiative, with over half of airports planning this by 2026.
“With industry ambitions to achieve net-zero CO2 emissions by 2050 in mind, airlines and airports are taking necessary steps towards reducing their carbon footprint, adopting digital tools for accurate monitoring and optimisation of energy consumption and emissions,” Lavorel added.
The SITA 2023 Air Transport IT Insights research was conducted from August to November 2023, and represents the views of over 250 senior airline and airport executives, covering a quarter of global passenger traffic.
The Taiwan Tourism Administration is restarting its marketing and promotional activities in India after a three-year hiatus brought on by the Covid-19 pandemic.
The authority organised its destination seminars in New Delhi and Mumbai recently – the first of travel trade activities after the pandemic. Taiwan Tourism Administration has also opened its Taiwan Tourism Information Centre (TTIC) in Mumbai. The centre will act as a one-stop-point for information related to travel and hospitality in Taiwan.
“Our first focus is to reach pre-pandemic tourist arrival numbers in the Indian market. Our promotional activities will focus on various products and experiences for both leisure and MICE segments. We are planning to organise fam trips for travel agents and media later this year. Also, a training programme for travel agents is in the pipeline,” shared Joseph Cheng, director, Taiwan Tourism Administration & Taiwan Visitors Association, Singapore office while speaking to TTG Asia at the New Delhi leg of destination seminars.
From January to November, the tourist arrivals from India to Taiwan stood around 30,000, a 70 per cent recovery compared to 2019. The Taiwan Tourism Administration is also in the process of hiring a PR agency in India to help grow outbound numbers from India, especially the MICE market.
“Metro cities like New Delhi, Mumbai and Chennai will be our focus for tapping the MICE segment. We are also in talks with China Airlines and EVA Air to begin direct flights between the two destinations,” added Cheng.
An official from China Airlines, who wished not to be named, told TTG Asia that the carrier may look to operate direct flights between New Delhi and Taipei once there is an availability of aircraft.
Some of the destinations Taiwan is looking to promote in India include Taipei, Taoyuan City, Kaohsiung and Tainan. Presently, the top inbound source markets for Taiwan are Hong Kong, Japan, South Korea, and Singapore.