Airlines are responding with a significant increase in technology investment, with LCCs planning to increase investment in technology by an average of 14.4% in 2024, alongside an average increase of 12.2% for FSCs.

Several priorities for these funds have emerged from the Travel Technology Investment Trends research this year, as airlines work to improve the traveler experience at the airport and deliver connected, end-to-end trips.

Transition to modern retailing

Front of mind is the transition to modern retailing, effectively a complete overhaul of an airline’s technology stack. Carriers are optimistic about this transformation, believing it could happen in the next five years or less, while there are ambitious aspirations for revenue impact, with airlines anticipating an 18% uplift in revenues on average.

If the industry is successful, passengers are set to benefit from this change, with more airlines able to make unique offers tailored to their needs in a single transaction.

Self-service and biometric technology

New self-service opportunities will make it easier to make changes to an order, while the deployment of biometric technology is set to improve the airport experience over the coming years.

Adoption of NDC

The study shows the adoption of NDC continues to accelerate, with new options to create personalized, end-to-end trips for travelers being seized by airlines. While there are valid concerns around high volumes of low-intent search traffic from airlines and travel agencies, new solutions are coming to market that can shield an airline’s own IT infrastructure.

New technology will also allow for the closer integration of FSCs and LCCs.

Using modern technology to enable more flexible interline agreements to the benefit of both airlines and their passengers, the number of flight options and combinations looks set to increase.

New network planning & scheduling capabilities

New network planning and scheduling capabilities are also integrating better market and competitive information, allowing airlines to harness AI to achieve the optimal balance between on-time performance and profitability.

Disruption

Finally, with disruption never far from the headlines, many airlines are preparing to invest heavily in a new generation of tools to help them better re-accommodate passengers and to deliver a more coordinated and collaborative response.

The industry is embarking on a period of significant change and as this study demonstrates, senior technology leaders are already taking well-funded investment steps to transform their airlines.

Methodology

This report is informed by a survey with 100 senior leaders involved in technology investment decision-making at airlines, 50 from low-cost carriers and 50 from full-service carriers.

The research was carried out in ten countries to provide a globally representative view. Respondents were drawn from the following countries: Brazil, China, France, Germany, India, Mexico, South Korea, UAE, UK and USA.

The survey was conducted by an independent market research agency, Opinium, in quarter four of 2023.