Technology for modernity

By Sunil Chopra
IATA Manager, India

We are seeing good progress in our Simplifying the Business (StB) programme comprising five projects that will save the industry US$ 6.5 billion annually. StB projects include 100 per cent e-ticketing by the end of May 2008, the use of bar-coded boarding passes, Common Use Self Service (CUSS) check-in, RFID for baggage management and IATA e-freight. Together, they will save the industry US$6.5 billion per year. IATA will release information on the next stage of StB on December 12, 2007. Currently, IATA has some 240 members comprising 94 per cent of scheduled international traffic.

Our top priority is 100 per cent e-ticketing by the end of May 2008. This alone will save the industry US$ 3 billion. We achieved our target of 40 per cent e-ticketing penetration at the end of 2005 and 70 per cent penetration at the end of 2006. As on September 2007, we were at 88 per cent e-ticketing penetration globally, 79 per cent in Asia and 81.3 per cent in India.

For BCBP, our target is to have all airlines BCBP-capable by the end of 2008, and 100 per cent BCBP usage by the end of 2010. Our goal this year is to have 80 airlines issuing IATA standard BCBPs by the end of 2007, which we achieved in September this year, three months ahead of schedule. For CUSS, 80 airports worldwide now operate it and another 30 have committed to implement it.

Specific to the travel industry in India, airlines are keen to ensure that there is adequate financial coverage for travel agents, which has been an issue during this year. Two options are being considered - either stay with an effective insurance service provider or move to bank guarantees. Both options have their pros and cons. IATA is working with the APJC to evaluate both options.

The IATA Corporate Travel Survey (CATS) was conducted online with over 10,000 active air travelers during September and October this year. IATA's corporate air travel survey 2008 examines the needs, attitudes and preferences of business travelers, providing vital information on trends and future expectations. The survey was conducted online and completed by 10,281 active air travelers. The survey revealed that not only are passengers accepting high-tech travel options, but are also demanding more opportunities to take control of their experience.

The results revealed:

• 89 per cent of responders preferred e-tickets to paper tickets
• 56 per cent had experienced internet check-in
• 69 per cent had used self-service kiosks
  When asked if they wanted more self-service options, 54 per cent said yes with positive results from all regions
• 64 per cent in Africa and the Middle East
• 57 per cent in the Americas
• 53 per cent in Europe and
• 51 per cent in Asia Pacific

Giovanni Bisignani, director general & CEO of IATA, has said that the consumer has spoken and the message is clear. Self-service is part of full-service expectations. And airlines are responding with technology that gives travelers greater convenience and more options to control their travel experience. Respondents have also ranked the self-service features they plan to use most often in future, and it includes:

• Online booking (75%)
• Online reservation changes (69%)
• Online check-in (61%)
• E-mail notification service (60%)
• Printing boarding passes at home (58%)
• Common use self service check-in (53%)
• Re-routing of missed or cancelled flights (41%)
• Remote baggage drop off service (33%)
• Post arrival assistance (28%)

Respondents also called for additional self-service options online and at the departure gate:

Online: The list of website services that consumers want was headed by the opportunity to select or change seats (82 per cent). Passengers also want the ability to change reservations (55 per cent), update their frequent flyer information (49 per cent) and purchase or request upgrades (45 per cent) online.

At the Departure Gate: Topping the consumer self-service wish list is the ability to obtain last minute upgrades (62 per cent), followed by last minute changes to seating (46 per cent) and obtaining transfer information (27 per cent). Adding frequent flyer information (21 per cent) and the ability to check-in additional baggage (19 per cent) rounded out the top five preferences.

As mentioned before, IATA's StB programme started in 2004 is the platform for global standards in technology and process that are improving the travel experience. Global penetration of e-ticketing, now at 88 per cent, will be 100 per cent by May 31, 2008. Over 90 airlines are using bar-coded boarding passes, CUSS kiosks are operating at 80 airports, and RFID baggage management is live at four airports.

One thing I would like to see in India is greater use of technology to simplify the travel process. The StB projects use technology that is currently available to make it more convenient to travel. Yet despite the tremendous growth in Indian aviation, with new airports being built and existing airports being modernised, India is slow in embracing these new technologies, including Cochin and Chennai airports. There are some airports in India that are still not able to accept e-ticketing and many other have yet to embrace CUSS or BCBP within their processes.

Indian airports have a huge opportunity to get ahead of the curve now by embracing and employing these technologies in their operations - it will result in savings for the industry and more convenience for travellers.