Competition is something natural when we are talking about business. We can say that it is a natural ingredient in every market. There are sectors where competition is higher, and the airline industry is one of them.
Why? Because there are so many companies offering the same, and customers are not loyal to any carrier, so if they want to increase their sales, differentiation is required.
Here is where mobile strategy comes as a distinguishing element. This strategy should focus on three pillars:
- Using social media to engage with clients
- Buying airline tickets with mobile payments
- Using mobiles inside the planes to pay
Social Media has become a force for democratization of communication. The airline industry has achieved the second position as the most social industry.
If we talk about Facebook, the airline industry it is ranked only slightly behind Telecom companies, if you check some of their fan pages you will see how often they offer promotions to attract more public and increase their engagement. Social media is playing an increasingly important role in airlines’ daily operations.
Thoughtful use of social media and the development of a coherent social media policy are essential, and this requires to put in practice some parameters:
- Listen
- Regulate
- Empower
- Analyze
Most airlines believe the future of airline payments is in mobile, according to a survey made by WorldPay, one of the largest payments processing companies in the world. The number of airlines accepting mobile payments increased from 10% in 2012 to 25% in 2013, based on the survey mentioned, which included 68 traditional and low cost global airline carriers.
50 per cent of airlines around the world think mobile is the best way to take advantage from competitors in their industry. In fact, 45% of airlines expect to earn extra revenue from purchasing tickets by mobile payments.
Airline companies already provide a number of services through mobile and more than 30% of them are planning to introduce mobile payments on-board in the near future.
80 per cent of the airlines asked by WorldPay, believe that the improvement and deployment of new payment technologies is a major priority for them. And the solution in most of the cases is mobile payments.
