Airlines Should Invest In Blockchain To Advance Global Growth Prospects – Frost & Sullivan Reportbr>
Devloping digital tools, based on disruptive technologies such as blockchain, will continue to be a major focus area for airlines, according to a report by business consulting firm Frost & Sullivan.
In its Global Airline Benchmarking, 2008–2017, the firm reviewed 17 airline groups and airlines and found that their revenues nearly doubled in the past 10 years, while the industry grew by 32% in the same period. According to the report, new digital tools have helped airlines grow direct and indirect revenues, optimize costs, improve the passenger experience and advance growth prospects.
To harness long-term, consistent growth prospects, the firm recommends that airlines should take advantage of wider opportunities provided by disruptive technologies such as blockchain, biometrics, artificial intelligence (AI), virtual reality (VR), augmented reality, Internet of Things and big data. According to the firm these technologies should be part of the airlines digital transformation programs to retain and enhance their positions in the market.
Priyanka Chimakurthi, Senior Research Analyst, Airlines, Frost & Sullivan, said that airlines should also pursue deep industry partnerships, competitive pricing and continued portfolio development through consistent investment in research and development with innovative suppliers and startups.
“Investment in innovative products and technologies will bring new cost items to meet passenger expectations,” Chimakurthi said. “Airlines will continue to experience heavy competition, and financial success will depend upon fleet investment, aircraft type selection, winning more direct bookings, building new partnerships, restructuring or negotiating old ones, and an understanding of the strength of the customer base.”