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Airlines Are Adapting To Digital Distribution Shift

April 6, 2017

Three global trends are reshaping travel distribution business models and threaten to weaken the connection between airlines and their customers: 1) the rise of digital technologies, 2) shifting customer behavior on both retail and business sides, 3) changing dynamics within direct and indirect sales channels.

Nowadays, the consumer trends involve an increasing use of online channels for search and booking, the use of multiple devices, and the growing popularity of social media. Meanwhile, changing dynamics within direct and indirect sales channels — online travel agents, traditional travel agents, and travel management companies — offer opportunities and pitfalls for airlines.

Hence, airlines need to redefine their travel distribution business model as new technology has changed the way businesses operate; they also need to increase their understanding of how consumer behavior is changing the way of doing business.

The bottom line is that Airline companies have to become more service-oriented and deliver improved, differentiated, personalized, and exclusive products to customer. Building their organization around theirs customers is the key.

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