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Five trends for the airline industry: business process outsourcing and outsource travel services by Gloria Philips





Five trends for the airline industry: business process outsourcing and outsource travel services by
Article Posted: 10/13/2015
Article Views: 116
Articles Written: 1368
Word Count: 509
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Five trends for the airline industry: business process outsourcing and outsource travel services


 
Travel & Tourism
During 2010, things are anticipated to appear a great deal brighter for your airline industry buffeted by among the severest economic recessions in 2008-2009. To deal, previously year, airlines have already been required to respond by cutting back on flights, rescheduling existing routes and looking out for brand new revenue streams like charging for aisle seats and baggage. Some also have looked to business process outsourcing and outsource travel services.

Based on IATA, the very first green shoots of recovery could be evident during 2010; passenger traffic will probably reach the peak degrees of 2007 even while airlines drive down non-fuel unit costs by 1.3 percent. Consequently, there will probably be a tempered optimism within the airline industry during 2010.

There are several key themes emerging within the ‘flight path' of 2010

1. Increasing travel demand: A couple of the very best six United states airlines saw their very best traffic results in 18 months this past November. While Southwest recorded a 12 percent increase, Continental registered a 2.8 percent increase, respectively, in miles flown per passenger. These figures represent absolute increases in ‘warm bodies' flown - a far more reliable metric than passenger load factor.

Clearly, the slump in air travel is ending. IATA has revised its passenger traffic estimates for 2010 upwards by 4.5 percent (as against the prior forecast of three.2 percent in September 2009). Approximately 2.28 billion people are anticipated to fly during 2010, bringing the entire passenger numbers back consistent with the peak recorded in 2007.

2.Airline-supplier consolidation: As airlines improve services while implementing aggressive pricing strategies, many intend to forge new links with distributors, including travel management agencies that don't depend on the standard GDS connections. A trend that first started a couple of years ago, airlines are anticipated to carry on to implement direct-connect models to handle products and inventories, and establish closer ties using their customers. For instance, last October, American Airlines indicated its plans to maneuver all indirect volume to direct connections.

This can change the type of Airline-GDS relationships. One notable potential by-product of the trend might be GDS / TMC consolidation. With Amadeus and Travelport considering IPOs, the money raised might be used to buy a significant global TMC. The GDS want to possess a more direct impact on their own revenue potential from your carriers and, if the would occur, a new dynamic will impact the already convoluted distribution model.

3.Environmentally-responsible aviation: By March 2010, EU-based airlines must provide co2 emission reports. That's why, during the last 6 months, several EU airlines have started using bio-fuel either wholly or perhaps in part on certain routes. This trend is currently spreading to The United States where several airlines have indicated their desire for buying eco-friendly jet fuel. Additionally, several EU airlines have started developing carbon offset programs in addition to implementing shorter routes and efficient landing operations in addition to best practices in fuel management to lessen emissions.

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