COVID-19 Has Changed IT Spending Priorities For Airports And Airlines

The COVID-19 pandemic has refocused IT spending priorities for airlines and airports. In 2020, as revenue plunged, the industry faced new health and operational requirements needed to keep flying.

Among the key findings from SITA’s 2020 Air Transport IT Insights, published today, was an accelerated investment in automated passenger processing focusing on touchless and mobile services. There was also a strong focus on virtual and remote IT services. These set of circumstances allowed employees to work from home while ramping up communications with passengers. Cybersecurity and cloud services – that helped automate operations and drive new efficiencies – were key.

SITA data also showed that flight volumes plunged 44 per cent year-on-year due to the pandemic. As a result of this impact on demand, IATA forecast the airline industry’s full-year loss at $118 billion.

David Lavorel, CEO SITA AT AIRPORTS & BORDERS, said “The severe slowdown in 2020 forced the air transport industry to focus on driving new cost efficiencies. Adding to the pressure, airlines and airports had to rapidly incorporate new health measures such as touchless passenger processing and the handling of new health information and protocols, including PCR testing in many destinations. These efforts have been made in a market that continues to face rapid changes in air travel regulations that make operational planning volatile and last minute.”

“To solve these challenges, the industry has turned to technology and, in many cases, reprioritised where they invested in 2020. The good news is that airlines and airports were able to capitalise on existing trends to automation. They have made significant strides in implementing new solutions that will bring new improvements for the passenger now and into the future.”

Data and automation are key
Making the check-in process completely touchless is now the main priority for airports and airlines to help protect passengers and staff, improve the passenger experience, and drive efficiency.

Biometric technology is the focus for airport investment with 64 per cent as many as in 2020. Airlines have doubled implementations and plan to double investment for self-boarding using biometric & ID documentation by 2023 (82 per cent).

Similarly, airlines are prioritising a completely touchless check-in process. Most want mobile touchless payment options for all services provided. The majority (79 per cent), is focused on enabling self-bag drop for passengers. All essential customer services will become contactless from booking to arrival, including automated lounge access and mobile delayed baggage reporting.

Airline mobile applications for passenger services is a priority with nearly all (97 per cent) of airlines having major programmes and R&D in place by 2023. It is expected that by 2023, the majority of airlines will be planning to send passengers real-time notifications on mobile devices about their bags. In addition, this plan will provide real-time bag-tracking information for staff.

Virtual IT services
In response to the pandemic, most airlines and airports are investing in more in-house virtual and remote IT services. This in turn allows employees to work in a more agile and effective way while speeding up communications with passengers. Almost three-quarters of airports and airlines will continue to invest in data exchange, cloud services, cybersecurity, and business intelligence to accelerate their digital airport processes. This includes increasing services on passenger mobile apps and ensuring staff services are accessible via mobile or tablets.

The full report, including methodology and charts, can be found here.