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Comment: The five critical factors in aviation’s long-haul journey of profound digital transformation

Emily Weiss, senior managing director and global lead of Accenture’s Travel Industry Practice, explains how airlines can navigate an increasingly complex operational environment while meeting the changing expectations of customer

In 2025, the global aviation industry is at a pivotal juncture, driven by the need to adapt to an ever-changing global landscape and underpinned by advancements in technology that is reshaping customer experiences, addressing operational challenges and helping to foster a future that’s both sustainable and innovative.

Accenture’s research Charting Aviation’s Path to Reinvention’ uncovered five critical areas shaping the future of air travel, from developing new revenue streams and placing the customer at the centre of the aviation experience, to unlocking operational efficiency improvements, addressing the shift to a more sustainable industry and developing a future ready workforce.

Let’s explore these five areas in more detail.

Unlock New Revenue Streams

Firstly, there is a need to develop new revenue streams to offset rising costs and lessen reliance on traditional sources of income.

In today’s challenging economic environment, it is essential for airlines and airports to diversify their sources of revenue – traditional revenue streams such as ticket sales and landing fees are no longer sufficient.

As such, executives are exploring alternatives like unlocking offer/order and new distribution capabilities, ancillary services, reinventing loyalty, retail ventures, and innovative partnerships.

One of the major avenues for growth is loyalty and frequent flyer programs. Airlines and airports have a prime opportunity to revolutionise loyalty programmes by designing next-generation initiatives that cater to evolving consumer needs and preferences.

Accordingly, leaders overwhelmingly (90%) agree with the need to continuously enhance and innovate their loyalty programmes.

Features of these advanced loyalty programmes could include personalised experiences tailored to individual travellers, new reward tiers or benefits, real time earn and redeem offers and gamification.

Data-driven insights are also crucial for shaping personalised and targeted consumer offers, with the research finding that 70% of executives are expecting revenues from new business models to increase in the next six months.

Place the Customer at the Centre

Developing deeper, stronger, and more trusted relationships is key, and at the heart of the aviation industry’s transformation.

By focusing on personalised experiences and loyalty programs, airlines and airports can forge stronger relationships with their customers.

Additionally, creating a unified customer journey across various touchpoints is imperative and requiring cohesive strategies with technology playing a pivotal role.

For example, airlines and airports are utilising generative AI, cloud computing and data analytics to deliver seamless, personalised, and dynamic retail experiences.

This integration supports a more agile, customer-focused retail strategy, encompassing both sales and service that also streamlines backend operations.

Focusing on gen AI and its potential in the revolutionising the aviation industry, airlines are testing and piloting its capabilities to overhaul the trip planning, search and booking processes.

Gen AI algorithms, powered by vast data sets and machine learning, will enable airlines to provide travellers with more personalised and efficient services.

Yet, as of now, only a small fraction (6%) of surveyed companies are utilising generative AI to enhance their customers’ inspiration, search, and booking experiences, while a significant majority (91%) are still in the ideation or piloting stages.

Another priority for airlines and airports today is to regain control back from third parties to better engage and cater to customers through direct channels, encouraging customers to book directly through airline and airport platforms by offering exclusive deals, personalized offers and loyalty rewards.

Providing a user-friendly and efficient booking experience is crucial too —and this needs to be complemented with data analytics and AI to understand and predict customer preferences and behaviour.

Airlines and airports can also create partnerships within the travel industry and with the broader travel ecosystem (such as with hotels, transportation and tourist attractions – to fintechs and insurance companies) to create bundled services or seamless connections.

Most companies (89%) surveyed are piloting or ideating this capability — with just 11% reporting they are using it at scale.

Unlock Operational Efficiency Improvements

The aviation industry is harnessing the latest technologies to enhance operational efficiency and safety standards, from airside to landside, from the use of autonomous vehicles and robots, to video and data analytics, digital twins and the digital core (integrating the power of cloud, data and artificial intelligence).

On the airside, autonomous vehicles are set to revolutionise ground-handling operations by efficiently towing aircraft, transporting luggage, and conducting runway inspections, thereby enhancing operational efficiency, safety, and security while reducing human error.

On the landside, robotic systems will take over tasks such as baggage handling, cleaning, and security patrols, further optimising terminal operations and enhancing passenger experiences.

Our research indicates that 78% of airports are either in the ideation or pilot stages of operationalising autonomous vehicles and robotics. Only 14% report that they have scaled them across their operations.

Airlines and airports are also making advances in their use of AI powered data analytics, with 15% of airports surveyed having deployed this.

Data analytics can be employed to manage disruptions, improve operational resilience and optimise resources whilst enhancing customer satisfaction by minimizing the inconvenience caused during unexpected events.

The use of video analytics is also advancing, with AI-enhanced video analytics systems being used to monitor passenger movements, identify congestion areas, and predict peak times accurately. While only a small percentage have fully integrated video analytics, 81% are still exploring or testing these systems.

Digital twins create a digital replica of complex physical infrastructure, processes and systems – offering airlines and airports the opportunity to improve operations and decision-making through real-time monitoring, predictive analysis and simulations.

It’s an opportunity that’s ripe for scaling, as only 13% of airports surveyed having done so, with the remainder in ideation or piloting stages.

A digital core integrates the power of cloud, data and artificial intelligence (AI) and powers enterprise-wide reinvention, including transforming talent and workforce capabilities.

Cloud is a major foundation here, with the aviation industry transitioning towards cloud-based platforms that are open, modular, and order-native, facilitating easier integration of third-party services and allowing for tailored solutions that meet specific operational needs.

Despite the benefits, adoption rates vary due to challenges like legacy systems, regulatory constraints, and the complexity of moving from traditional to cloud-based infrastructures.

Currently, 19% of airlines have adopted these platforms and 77% are in early stages of implementation.

Address the Shift to a More Sustainable Aviation Industry

Accenture’s survey revealed that 85% of companies are confident in the industry’s ability to achieve net-zero goals by 2050.

This requires significant investments in innovative technologies, sustainable aviation fuels (SAF), and operational efficiencies.

However, challenges such as the global nature of air travel and reliance on fossil fuels complicate these efforts.

Airports are implementing robust sustainability strategies and initiatives aimed at minimising their environmental impact while enhancing operational efficiency.

These initiatives include reducing greenhouse gas emissions, conserving energy, optimising water usage, enhancing waste management practices and promoting eco-friendly transportation options.

Moreover, to minimise their carbon footprints, airports are integrating green building designs and sustainable materials into their infrastructure projects.

Additionally, collaboration between airlines, airports, manufacturers, and policymakers is crucial to drive sustainable aviation.

Develop a Future Ready Workforce

The aviation industry’s workforce needs are evolving rapidly. Traditional roles are intersecting with new demands for digital expertise, data analytics, cybersecurity, and sustainable practices.

Nearly all executives acknowledge the challenge of hiring and retaining talent post-COVID19, with 97% of industry executives acknowledging these difficulties.

Despite these challenges, the industry is shifting from recovery to profitability, emphasising the need for focused initiatives on talent acquisition and retention to leverage these technological advancements effectively.

This strategic focus is crucial for sustaining innovation and operational efficiency in the evolving aviation landscape.

The industry must also focus on initiatives such as compensation benefits, employee training, diversity, equality, and inclusion (DEI) policies, and flexible working models to attract and retain a skilled workforce.

Additionally, our survey revealed that only 5% of organisations have more than 50% women representation in leadership positions and identified the seven key barriers to women’s representation in aviation.

Of this, ‘lack of female role models and mentors in key positions’ ranked as the biggest barrier to increase women representation in the aviation workforce (stated by 58% aviation leaders), followed by ‘safety concerns’ (stated by 55%).

The Flightpath to Reinvention

In conclusion, the aviation industry is on a long-haul journey of profound transformation, against headwinds of consumer expectations and disruption.

By addressing these five key themes and focusing on technology, talent and sustainable practices, airlines and airports can navigate the complexities of the future, enhance convenience and resilience.

Reinvention should be continuous, adapting to both present and future challenges, with an urgent need to bridge the gap between potential technological advancements and current practices.

The post Comment: The five critical factors in aviation’s long-haul journey of profound digital transformation appeared first on Aviation Business News.

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