Customer experience in the airline industry

Engaging experiences

In terms of retail, airports also present an unusual opportunity for luxury and prestige brands to reach consumers at a time when they are particularly likely to make a purchase (when looking for gifts, in the mood for holiday spending or wanting to offload foreign currency, for example). Given this, many outlets have used novel techniques to attract customers to their offerings. For example, Bacardi created a virtual cocktail bar where customers could “visit” the best bars in the world using a VR headset; while Rémy Martin created an interactive installation using Microsoft HoloLens, enabling buyers to learn about the company's vineyards. Other stores, meanwhile, have used AR tools to mock-up what bespoke items and outfits will look like when finished – enhancing the experience and giving shoppers a more tangible sense of what they are ordering.

The impact of digitalisation isn't just consumer facing, however. Digitally tracking retail inventory (and luggage) around airports means that these items can be moved more quickly and smoothly than before, and with less need for repeated manual inspection. Equally, moving goods via autonomous vehicles will reduce demands on personnel, cut friction in the system and simplify security (by taking humans and possible human interference out of the equation).

Online sales

A similar change has taken place with the sale of tickets and with check-in, all of which can now be completed online, without talking to a human, and which, of course, can be handled in full via a mobile device. Online sales also allow airlines to promote everything from additional legroom and larger luggage allowances to hotel rooms, car hire and taxi services, affording them the opportunity to upsell and cross-sell customers. All these offerings build on the airline's profit margin beyond the base price of the ticket – a must given the ease with which customers can compare prices between different carriers, before setting on the cheapest seat.

Having passengers check their own baggage, meanwhile, presents a new frontier in cutting human interactions, and consequent costs, from the process – theoretically making the process fast, simple and frictionless. It's one more example of a case where investing in technology and automating services can cut overheads and boost efficiency.

This is perhaps the key ambition for innovation in the sector: to remove hold-ups and to make the system faster, simpler and less stressful. This, of course, frees passengers to enjoy their journey – and to engage with shopping outlets and other services offering in the meantime, to the benefit of retailers and airport operators.