Showing posts with label SITA. Show all posts
Showing posts with label SITA. Show all posts

Thursday, June 19, 2008

Reduce costs by spending more on IT

SITA has issued some headline findings from a couple of its reports, angled around how the airline industry can use technology and IT to address the bottom-line impact of the hike in fuel prices.

The IT specialist claims that online booking has already saved the industry $2bn in distribution costs. And there’s more to come – from the 121 airlines in its sample, the average level of direct bookings is 24%.

But reducing costs remains the most common reason for investing in IT. Industry body IATA’s latest estimate for the aviation industry’s losses this year is $2.3bn. And IT accounts for an average of 2.2% of an airline’s revenues.

The increasing importance of mobile phones is highlighted in a separate paper. SITA says that ‘location sensing via mobile devices could save airlines up to $600 million by tracking passengers, sending messages and moving them to gates more efficiently; improving turnaround times and reducing delays.’

It also predicts an evolution of self-service to mobile devices. ‘Airlines are forecasting that while only 1% of passengers use mobile phones for check-in today, this will rise to 6% next year by which time more than half of airlines will offer the service.’

And 85% of the sample is now providing passenger data to the world’s governments. Last year it was only 4%.

Martin Cowen, chief writer, Travolution