HOUSTON--(BUSINESS WIRE)--PROS® (NYSE: PRO), a provider of AI-powered solutions that optimize selling in the digital economy, today announced the findings of its global survey, “The State of Airline Digitization: Expectations Meet Reality,” which sheds light on the digital transformation across airline carriers. Gathering insights from nearly 400 executives, directors and managers within the airline industry, the PROS survey provides perspective on airline digitization progress and priorities. The survey research shows that airlines of all types and sizes are working toward digital transformation initiatives that focus on improving the passenger experience, improving performance and staying competitive.
Airlines are well underway in their digital transformation journeys, but it is still early in the process, with only 8% of airlines reporting more than three years of engagement in digital transformation efforts. This leaves room for airlines to capture opportunities with digital advances that delight passengers, setting a new standard for customer service and resulting in improved customer loyalty.
“Today’s passengers want to be wowed and airlines understand this, which is why they are undergoing these business-critical digital transformations,” said PROS Solution Strategy Director for Travel, Aditi Mehta. “In fact, our survey indicates that more than 90% of airlines are seeking multiple changes to their tech stacks, including shopping and merchandising capabilities, and digital retail – all to deliver optimized offers to passengers while improving the passenger experience throughout the entire travel journey.”
To further support and advance digital transformation initiatives, the survey shows airlines are devoting a significant percentage of their total budgets and creating new roles within their organizations. Overall, 58% of airline respondents have created entirely new departments around digital efforts, while 65% of respondents report the creation of new roles within commerce, distribution, revenue management and IT.
Regardless of carrier type or size, technological innovation and passenger experience are top priorities of airlines according to the survey. There are differences in how these priorities are addressed when the data is broken down by airline size. The survey reveals network carriers are more likely to prioritize operational efficiency, with service- and system- upgrades, while 58% of low-cost carriers report they are applying digital transformation initiatives to improve the selling experience.
Across the board, airlines responding report a high-level of confidence in their ability to implement digital transformation initiatives, especially enhancements to the web and mobile experience. Airlines typically expect digital transformation initiatives to increase revenue as a result of the investment, however the survey data reveals mixed expectations across carrier size with 53% of network carriers expecting revenue impact to be more than 10% compared to only 24% of low-cost carriers expecting the same outcome.
The global study, conducted by Hanover Research on behalf of PROS, offers a research-validated perspective on the state of the airline industry as it pertains to digitization initiatives, so airlines can create more accurate benchmarks for their digital transformation journeys and understand what to prioritize next.
The full “The State of Airline Digitization: Expectations Meet Reality” report is available for download here.
PROS Holdings, Inc. (NYSE: PRO) provides AI-powered solutions that optimize selling in the digital economy. PROS solutions make it possible for companies to price, configure and sell their products and services in an omnichannel environment with speed, precision and consistency. Our customers, who are leaders in their markets, benefit from decades of data science expertise infused into our industry solutions.
This press release contains forward-looking statements, including statements about the functionality and benefits of AI-powered solutions to organizations generally as well as the functionality and benefits of PROS software products. The forward-looking statements contained in this press release are based upon PROS historical experience with AI-powered solutions and its current expectations of the benefits of AI-powered solutions for organizations that implement and utilize such software. Factors that could cause actual results to differ materially from those described herein include the addressability of an organization’s AI-powered solution needs, the risks associated with PROS developing and enhancing products with the functionality necessary to deliver the stated results and the risks associated with the complex implementation and maintenance of AI-powered solutions such as PROS software products. Additional information relating to the uncertainty affecting the PROS business is contained in PROS filings with the Securities and Exchange Commission. These forward-looking statements represent PROS expectations as of the date of this press release. Subsequent events may cause these expectations to change, and PROS disclaims any obligations to update or alter these forward-looking statements in the future whether as a result of new information, future events or otherwise.