At the top of the agenda for CIOs at both airlines and airports are investments in cybersecurity and cloud services. They are also prioritizing investments in passenger self-service.
SITA's study of the world's airlines and airports shows that IT spending remains significant. Airline spending as a percentage of revenue is projected to rise to an estimated 3.30%, or US$24.3 billion[1], in 2017. For airports, spending is expected to increase to 5.05% this year, or US$8.43 billion. Looking ahead to 2018, more than 70% of airlines and 88% of airports expect their IT investment to increase or remain at current levels.
As IT spending rises, both airlines and airports confirm that cybersecurity is their number one investment priority. Nearly all of them (95% of airlines and 96% of airports) plan to invest in major programs or R&D initiatives related to cybersecurity over the next three years. This demonstrates industry-wide agreement on the importance of investing in this area.
Ilya Gutlin, President, Air Travel Solutions, SITA, comments: “The air transport industry is undergoing a digital transformation and is focusing on protecting both operations and passengers, making the process more efficient and improving the passenger experience. Cyberattacks are a very real threat in the highly interconnected air transport industry, so building strong defenses is essential. Cloud services provide significant efficiencies that play a key role in keeping costs down. Investments in self-service improve passenger satisfaction as they appreciate the independence and efficiencies it brings.”
Gutlin continues: “When it comes to IT investments, airports and airlines are aligning to deliver better and safer service to customers. The interdependencies built into air transport systems necessitate investments and improvements in all these areas, by both airlines and airports, and will continue to contribute to a stronger global industry.”
Antoine Rostworowski, Director of Airport Technology and Customer Experience at Airports Council International (ACI), commented: “The SITA study, which was co-sponsored by ACI, reveals valuable insights for our industry. It is encouraging to see the alignment of investment priorities between airports and airlines, reflecting the collaboration between ACI and IATA on best practices. ACI and IATA have joint initiatives such as Automated Border Control, End-to-End Baggage Tracking (Facilitation), Data Sharing, Common Use (Airport IT), and Smart Security. Industry players like SITA and others are also involved in these initiatives to make airports more efficient and improve the passenger experience.”
Cloud services are another top investment priority, with 95% of airlines and 85% of airports planning to invest over the next three years, continuing the upward trend that SITA has been recording since 2015. The third key area of investment, highlighted by both airlines and airports, is providing additional self-service options for passengers.
Airlines are focusing on facilitating mobile services. Currently, a large majority of airlines provide check-in (73%), boarding (70%), and flight status notifications (68%) via mobile services, and by 2020, more than 97% plan to do so. A key area of growth will be providing real-time flight updates through social media, which will increase from 31% to 92% of airlines within the next three years.
Providing a seamless experience is critical for airlines. Overall, 94% rate streamlining services into a single app as a priority, while 58% rate it as a high priority. The capabilities and ease of use of mobile apps are evolving rapidly, and more and more airlines plan to use mobile services as a customer service tool, even during disruptions.
At airports, self-service check-in, baggage claim, and boarding processes are becoming increasingly popular with passengers, and 89% of airports are investing in these processes. Airport operators are keen to improve the throughout-terminal experience and are exploring new technologies such as the Internet of Things, beacons, and sensors to support their goals. SITA's findings show that 80% are investing, or plan to invest, in these technologies over the next three years. Nearly three-quarters (74%) are investing in search solutions, and 68% in solutions to enhance passenger personalization.
SITA's IT Trends studies are firmly established as a global benchmark for the air transport industry. The study, conducted earlier this year, involved senior IT executives from major airlines and airports. The 2017 results once again provide a clear picture of the air transport industry's strategic IT thinking and developments.
[1] Estimates based on 2017 revenue forecast by IATA, June 2017
