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  • 7/25/2019 SITA Airline It Trends Survey 2016

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    2016AIR TRANSPORT INDUSTRY INSIGHTS

    SITA INSIGHT

  • 7/25/2019 SITA Airline It Trends Survey 2016

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    THE AIRLINE IT TRENDS SURVEY 2016 | SITA 2016

    FOREWORD

    We have heard a lot in recent years about thepotential of the Internet of Things (IoT) and oursurvey indicates, for airlines at least, the hype isstarting to turn into reality.

    Most projects are currently small scale trials used to gain

    knowledge on what might be possible. But a sizeable number

    of airlines are investing in smart systems to deliver accurate

    information, such as queue lengths and time to gate, to

    passengers via mobile apps and, further down the line,

    smartwatches.

    Technology is also making aircraft smarter. We have taken

    a look at how fast the industry is moving towards connected

    aircraft and the expected impact they will have. Currently

    two-thirds of airlines plan to have them in their fleet by 2019.

    This year we have also looked at the hot topic of cyber

    security. Encouragingly, more than 60% of airlines placeoversight for cyber security at the board level rather than

    within IT departments, suggesting it is starting to be viewed

    much more as a business risk.

    Overall, IT spend as a percentage of revenue has stayed

    broadly flat since our last survey, but it is forecast to pick up

    this year and we note an unusually high proportion of CIOs

    predicting budget increases for 2017.

    Much of that money is earmarked for maintaining existing

    IT services and infrastructure, but innovation projects are

    starting to take a larger slice with a particular focus on

    making mobile apps the go-to technology for self-service,

    information or customer service.

    For the last 18 years we have been tracking the key

    technology trends of airlines. We appreciate it is only possible

    to provide such a comprehensive view through the generosity

    of time given by the many respondents. We thank you and ask

    for your continued support in the years to come.

    This is one of three complimentary SITA surveys covering

    IT trends from the perspective of airlines, airports andpassengers. Together they provide a unique 360 degree view

    on how IT is shaping the way people fly.

    For more information on all our surveys and accompanying

    features and analysis, visit www.sita.aero/surveys.

    Francesco Violante

    CEO, SITA

    Max Kingsley-JonesEditor, Airl ine Business

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    CONTENTS

    ABSOLUTE IT SPEND STABLE 4

    IOT DRIVING NEW TECHNOLOGIES 6

    INDUSTRY HOT TOPICS 8

    CONNECTED AIRCRAFT 9

    MOBILE DRIVING SELFSERVICE GROWTH 11

    FOCUS ON CHINA 13

    METHODOLOGY 16

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    ABSOLUTE

    IT SPEND STABLE

    CONFIDENCE GOING FORWARD

    Overall IT spend by airlines in 2015 was 2.7% of revenues,

    marginally below the 2.8% spent in 2014. Two-thirds of this

    was controlled by the CIO, with the remainder spread across

    other departments budgets.

    In 2016, airlines predict their IT spending will grow as a

    percentage of revenues to 3.0% and that confidence looks set

    to extend to 2017 with 52% of CIOs predicting their operating

    spend and 57% expecting their capital spend, to increase

    compared to 2016. This is considerably more positive than

    projections in our previous surveys.

    This years survey continued to show a growing shift of

    operational IT spend away from internally delivered services

    towards outsourced or external contractors. In 2015, 35%

    was spent on the internal IT department, down on the 42%

    spent in 2014 and 2016 looks to follow a similar pattern

    with 34% budgeted for internal IT departments and 66% for

    outsourcers or external contractors.

    57%OF AIRLINES EXPECT CAPITAL IT SPENDTO INCREASE IN 2017

    Majority of airlines expect IT spending to increase in 2017

    % of airlines expecting IT spend change for next year

    Increase

    Same

    Decrease

    2016

    Operatng spend

    2017

    39% 37%

    39%

    22% 11%

    52%

    2016

    aptal spend

    2017

    49%

    31%

    38%

    13% 12%

    57%

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    Service continuity consumes the largest proportion of IT

    budgets with maintenance taking the biggest slice grabbing

    29% of the total IT spend. However, there are signs of

    an increasing focus on advancing capabilities in 2016,

    particularly in software development where the proportion of

    budget spend has grown compared to the 2015 survey.

    INVESTMENT PRIORITIES

    Mobile continues to dominate the IT investment agenda

    for passenger services. Nearly 80% of airlines plan major

    investments in passenger services via smartphones over

    the next three years, while 71% of airlines expect to do the

    same for tablets. Other major investments in the passenger

    experience are centered on generating ancillary revenues

    with 64% of airlines planning programs that will achieve this.

    Two passenger areas where most airlines are still at the R&D

    or pilot project stage are self-service for irregular operations

    and IATAs New Distribution Capability, which 43% and 40% of

    airlines are evaluating, respectively.

    On the operational side, major investments include

    implementing Electronic Flight Bags (EFB) (71% of airlines),

    while around half of airlines plan to equip staff and ground

    handlers with mobile technologies. There is also growing

    interest in collaborative platforms, such as Yammer, for staff,

    with 36% of airlines planning major programs and a further

    41% initiating R&D projects.

    This year there has also been a marked increase in the

    number of airlines making investments in the Internet of

    Things (IoT). 68% of airlines have committed budget to major

    projects or research and development over the next three

    years, up from just over half in the 2015 survey.

    Growing focus on development and innovation

    2015 operating and capital IT spend split across categories

    Innovation/enriching assets

    Service continuity

    Maintenance

    Software development

    Telecommunications/network

    Data centre

    New deployments

    Devices

    29%

    21%

    66%

    34%(+1.7pt)

    (-1.7pt)16%

    14%

    8%

    12%

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    IOT DRIVING NEW

    TECHNOLOGIES

    There are high expectations that Internet of Things (IoT)

    technologies can play a big role in making air travel more

    efficient and improve the passenger experience.

    In our 2015 survey airlines indicated there were clear benefits

    to be had from the IoT and this year we are seeing many

    airlines back that belief with serious money. In fact, 29%

    of airlines have embarked on major IoT programs, up fromjust 16% in the 2015 survey, while another 38% of airlines

    are planning research and pilot projects over the next three

    years.

    Today, the IoT is still in its infancy within the industry and that

    is underlined by the fact that the most common IoT-enabled

    initiative of fuel/engine monitoring has been implemented

    at only one in five airlines (22%). The second and third most

    commonly implemented - managing equipment condition/

    consumable levels and managing the aircraft environment

    have been achieved at less than one in ten airlines.

    Nevertheless, there is a good level of interest in R&D projects

    around IoT. Just over 60% of airlines are investigating smart

    baggage tagging over the next three years, while 47% and

    66% of airlines, respectively, plan to evaluate single travel

    token and fuel/engine monitoring.

    IOT CONNECTIVITY BEING DEPLOYEDThe number of airl ines showing interest in IoT gateway

    technologies like beacons and sensors to provide passenger

    information has grown sharply since our 2015 survey. For

    example, the number of airlines with no plans to provide

    walk to gate times to passengers has fallen from 66% to

    38% of airlines. Similarly, the no plans for notification of bag

    collection details has dropped to 37% of airlines from 60% in

    our last survey.

    These technologies will also support airline plans to grow

    ancillary revenues. Currently, the key data used to determine

    the offers that customers receive is based on frequent flyer

    information, but our survey suggests the passengers location

    will play a greater role in future.

    Smart baggagetagging to enable

    continuoustracking

    61%

    Fuel / enginemonitoring to

    generateefficiencies

    66%

    Passengeridentification(single travel

    token)

    47%

    Monitoring

    location/conditionof assets

    42%

    Manage

    equipmentcondition

    /consumablelevels

    50%

    Major focus on IoT for passenger and operational benefits

    % of airlines focusing resources on IoT initiatives over next three years

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    CHALLENGES

    While momentum behind the IoT is starting to gather pace,

    airlines still see a number of potential issues that could slow

    progress. Top of the list is the upfront cost of implementing

    IoT devices, cited as a major challenge by 53% of airlines,

    while developing machine-learning techniques is a major

    concern for 49% of airlines.

    For passenger-related projects, 97% of airlines believed the

    perceived invasion of passenger privacy was an IoT challenge

    to some degree.

    WEARABLES ARE CATCHING ON BUT SLOWLY

    Among emerging technologies starting to appear in the

    industry are passenger wearables, such as smart glasses or

    watches, which are seen as having the most potential over the

    next five years. Currently, 11% of airlines are in the process

    of trialling services for these, with another 28% expecting to

    over the next five years.

    Wearables for staff have been adopted less by airlines so far,

    but in five years, 40% of airlines will undertake R&D projects

    or trials, putting it on par with passenger wearables.

    Longer term, the single biometric travel token is expected

    to become a viable alternative to current passenger identity

    processes. In the next ten years, just over half of airlines

    (54%) plan to evaluate the technology, while 43% will do the

    same for artificial intelligence (AI).

    Next 5 years Next 10 years

    40% 39% 30% 23% 20%

    51% 53% 54% 44% 37%

    Single biometrictravel token for

    identitymanagement

    Wearablesfor staff

    (Smartwatch /Smartglasses)

    Virtual realityservices forpassengers

    Specificwearable-enabled

    services forpassengers

    ArtificialIntelligence

    19%

    37%

    Virtual realityservices for

    staff

    Mid term trials planned for wearables

    % of airlines expecting to trial new technologies in next five to ten years

    68%OF AIRLINES PLANNING IOTPROJECTS BY 2019

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    CYBER SECURITY

    Cyber threats have become a hot topic for CIOs in recent

    years and this is reflected in our survey with 63% of

    respondents indicating it is a board level responsibility at

    their airline.

    With its higher visibility, a large majority of CIOs (72%) are

    investing in major cyber security projects, with a further 19%

    engaged in R&D projects.

    It means most airlines believe they are better positioned to

    deal with potential threats than a few years ago. In fact 48%

    of airlines indicate they are prepared for the common types

    of cyber threats, compared to only 17% that believed this was

    the case three years ago.

    In addition, while only 5% of airlines were robustly prepared

    three years ago to deal with any type of cyber threat, that has

    now increased to 24% of airlines. More than 70% of airlines

    have beefed up education and training around cyber securit y

    and that will be the norm across almost all airlines in the nextthree years.

    Other initiatives around cyber security, such as software

    development, incident response, and intelligence and

    analytics, will all be almost universally adopted within the

    next 3 years.

    BAGGAGE TRACKING

    The industry is working towards making baggage as easy

    to track as parcels. Much of the work around this has been

    driven by IATA Resolution 753, which calls on airlines to

    ensure end-to-end tracking of baggage from June 2018.

    Interestingly, compliance with the resolution figures fairly

    low in airline IT investment priorities over the next three

    years. Only 24% of airlines have a major program focused on

    it, while 26% have no plans at all. The remaining airlines are

    evaluating technologies through trials or pilot projects with

    smart bag tagging a key area of evaluation.

    Looking behind these numbers airlines are citing a number of

    challenges they face to comply with the resolution. The major

    issue most commonly mentioned by airline respondents is

    the lack of visibility of the investment and running costs of abaggage tracking solution - 43% of airlines report this as a

    major challenge.

    Poor communication with airports also appears to be a

    common factor. Nearly two in five airlines (39%) cited airport

    collaboration as a major challenge, while 37% indicated lack

    of awareness of airport readiness.

    Despite the challenges, airlines expect a number of business

    benefits to materialize from making the investment. Most

    airlines (77%) believe improving customer satisfaction is the

    major benefit. That will be helped by being able to provide

    passengers with visibility on their bags. In fact, 61% of airlinesnoted more accurate and timely baggage information for

    passengers as a major benefit.

    INDUSTRY HOT TOPICS

    26%OF AIRLINES HAVE MADE NO PLANS FORCOMPLIANCE WITH IATAS BAGGAGE

    TRACKING RESOLUTION 753

    Cyber security is an investment priority

    % of airlines investing in major programs over the next three years

    24%

    Complianceto IATA

    Resolution753

    (bag tracking)

    72%Cyber

    security

    initiatives

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    CONNECTED AIRCRAFT

    Aircraft with advanced communication capabilities are

    starting to enter the fleet. These so called connected aircraft

    open the door to better aircraft utilization through efficiency

    improvements and the introduction of new services for

    passengers and crew.

    This year we have extended our survey to gauge where

    the industry is and where it sees the benefits of connectedaircraft.

    Slightly over one-third of respondent airlines (37%) operate

    connected aircraft today, but this will nearly double to 66%

    within the next three years. Just over one in four airlines

    (27%) have yet to place any orders for connected aircraft.

    There is a strong consensus that the main benefit from these

    aircraft will come largely from service improvements for

    passengers rather than operations. Just under half (46%) of

    airlines cite improving the passenger experience as the main

    expected benefit.

    46%OF AIRLINES SEE IMPROVING PASSENGEREXPERIENCE AS MAIN CONNECTEDAIRCRAFT BENEFIT

    Two thirds of airlines to operate connected aircraft in next three years

    % of airlines with connected aircraft plans

    Already operatingconnected aircraft

    37%

    Already operating & currentlytaking delivery of connectedaircraft

    45%

    Already operating and takingdelivery of connected aircraftby end of 2019

    66%

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    Only 15% of airlines see maintenance/aircraft health

    monitoring as the main driver for purchasing connected

    aircraft, while 12% see benefits for pilots and 7% cabin crew

    improvements, such as tablet apps and credit card payments,

    as the main benefit.

    WIFI TO CHANGE IFE STRATEGIES

    Interest in installing Wi-Fi on board for both crew and

    passenger usage is rising. Around half of airlines are

    planning major projects in this area over the next three years,

    up from around 40% reported in the 2015 survey. Around 30%

    of airlines expect to initiate trials by 2019.

    This trend is leading to declining interest in traditional

    seatback IFE systems. In this years survey there has been a

    sharp reduction in the number of airlines of fering or planning

    to offer services to passengers through seatback screens,

    including voice calls and SMS, internet access and file

    streaming.Conversely airlines are attaching growing importance

    to providing connectivity and entertainment through the

    passengers own device. In fact by the end of 2019, nearly

    three-quarters (74%) of airlines will provide wireless internet

    access to passengers and 70% will provide multi-media

    streaming to the passengers own device.

    Airlines driving on-board services to passenger devices

    % of airlines planning in-flight services

    Passenger devces Arlne suppled devces

    33%Today Today Today Today Today

    By 2019 By 2019 By 2019 By 2019 By 2019

    24% 21% 23% 19%

    74% 70% 58% 57% 61%

    Mobile phoneInternet InternetMulti-media file

    streamingMulti-media file

    streaming

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    MOBILE DRIVING

    SELFSERVICE GROWTH

    Airlines are positioning their mobile apps as the go-to place

    for passengers by adding self-service functionality, ancillary

    services, as well as providing more information and better

    customer service options.

    STEADY GROWTH OF MOBILE CHECKIN

    Three out of four airlines have already made check-in andboarding passes widely available through their mobile app

    and these services will become almost universal - surpassing

    the 90% mark by 2019.

    Passenger usage of them is also picking up as familiarity with

    mobile services increases. In 2015, check-in via a mobile app

    (smartphone and tablets) accounted for 12% of passengers, a

    steady growth on the 9% seen in the previous survey. Airlines

    forecast this to reach nearly one-third (31%) of passengers

    by 2019.

    REVENUE GENERATION

    Monetizing mobile investments through revenue generation

    is well underway. Today, around two-thirds of airlines offer

    flight booking through their app, and by 2019 a further 18%

    plan to implement the service.

    Currently the value of sales through mobile apps is low with

    airlines globally stating around 4% of their total revenue

    comes this way. However, airlines predict this will nearly

    triple to reach a global average of close to 12% in the next

    three years.

    The expectation for non-ticketing sales is even higher.

    Although just over 4% of ancillary revenues are generatedthrough mobile apps today, by 2019 that figure is expected to

    jump to just over 14%.

    To help build usage, airlines are adding ancillary services to

    their apps in greater number. Initially the focus is on airline-

    related offers, such as lounge access, Wi-Fi and seating, but

    by 2019 the number offering non-airline services on their app,

    such as car rental and travel insurance, will jump from 45% of

    airlines to 80%.

    INFORMATION SERVICES ENHANCINGMOBILE APPS

    More airlines are adding notification services to enhance

    the value of their mobile app and provide customer service

    support via smartphones and tablets.

    Flight status updates are already common, but there has

    been a surge over the last year in the number of airlines

    providing location-based notifications, such as time to gate.

    This has doubled from 7% in last years survey to 14% this

    year and this will continue to rise in the next three years to

    reach 70% of airlines.

    Resolving customer service issues, such as missed flights,

    is another mobile functionality that has been widely added to

    apps since our last survey with around one-third now offering

    the possibility, compared to only 8% previously.

    The focus for future mobile notification services has moved

    to baggage. The majority of airlines (circa 60%) are planning

    to introduce baggage-related features to their smartphoneand tablet apps over the next three years, including baggage

    location updates, missing bag communication and lost bag

    reporting.

    Implemented today

    Planned by 2019

    Missing baggage

    communication

    Real-time baggage status

    information for passengers

    Location-based

    notifications

    Baggage location

    status updates

    72%(+8%pts on 2015)

    70%(+5%pts on 2015)

    14%

    12%

    7%

    71%(+8%pts on 2015)

    11%

    66%(-4%pts on 2015)

    More airlines planning location based

    smartphone/tablet services

    % of airlines planning smartphone/tablet based services

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    47%OF AIRLINES WILL OFFER SMARTWATCH

    BOARDING BY 2019

    SMARTWATCHES

    A number of airlines are looking to extend their mobile

    services to smartwatches with three areas garnering strong

    attention check-in, boarding passes and f light updates.

    Within the next three years, nearly half of airlines will have

    implemented these services on smartwatches with flight

    updates and boarding passes the most commonly available at47% of airlines.

    WIFI IS AN ISSUE

    For all the good intentions of airlines to drive passenger

    usage of their mobile apps with new features and

    functionality, many believe access to Wi-Fi is an obstacle,

    particularly on board aircraft. In fact 89% of airlines see

    inadequacy of Wi-Fi and Internet access in-flight as an issue

    with 55% believing it to be a major challenge.

    EXTENDING SELFSERVICE INFRASTRUCTUREOutside of mobile investments, airlines continue to expand

    self-service to other passenger pain points, particularly

    around baggage and flight boarding.

    Self-printing of bag tags from airport kiosks is already a fairly

    common experience for passengers and the vast majority

    (86%) of airlines will have implemented this service by 2019.

    Much newer is home printing of bag tags. Only 10% of airlines

    offer this today, but there is strong growth predicted over the

    next three years with a fur ther 49% planning to make this

    option available to passengers.

    Closely associated is the availability of bag drop facilities.

    Nearly two-thirds of airlines (63%) have already introduced

    the assisted version, significantly up on the 37% reported in

    last years survey. A further 24% of airlines plan to do so in

    the next three years.

    Unassisted bag-drop has been less prevalent among airlines

    up to now, with only 23% having deployed it, slightly up on the

    17% reported in the 2015 survey. However, as passengers

    grow in confidence with baggage processing technology, a

    further 50% of airl ines plan to introduce unassisted bag-drop

    in the next three years.

    Self-boarding gates are further behind the self-service curve

    and they are not always within the jurisdiction of airlines.

    Today, only 10% of airlines have implemented them, but if

    investment plans are realized this will grow to 42% of airlines

    by the end of 2019.

    Inadequate coverageor speed of Wi-Fi

    At airport

    On board

    Passengers not willing/able to use Wi-Fi

    Inconsistency/inadequacy of Wi-Fi

    Passengers not willing/able

    to use connectivity on board

    27% 78%

    Major challengeChallenge

    11% 52%

    55% 89%

    29% 72%

    Major connection challenges are on-board and in airport

    % of airlines stating challenges to deliver services

    to mobile devices

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    FOCUS ON CHINA

    Last year was another stellar year for Chinese aviation with

    traffic growth of 15%, helped by soaring international traffic

    up 33%. Not surprisingly, confidence among Chinese CIOs

    is high. None of those responding is expecting a budget

    decrease for 2017, while just over half (52%) expect their

    budget to increase.

    Overall airline IT spend at 2.9% of revenues is outpacing theglobal level. Driving the f igure is capital investment, which in

    2016 is projected to be 40% higher per dollar of revenue than

    global counterparts.

    Looking deeper at where that money is being spent reveals

    that most airlines have a number of major IT programs for

    passengers planned over the next three years. In particular,

    80% of airlines are planning to upgrade their passenger

    management system and a similar number will implement

    passenger services via smartphones and social media.

    In terms of investing in specific technologies, 80% of Chinese

    airlines have plans for a major program on cloud, 44% onpredictive analytics, and 90% on data centers.

    SELFSERVICE ADOPTION

    Currently, passengers of Chinese airlines are behind the

    curve on using self-service technologies for check-in.

    Globally, airlines say 48% of passengers use self-service

    to check-in, compared to 39% reported by Chinese airlines,

    with most of the difference accounted for on mobile usage.

    Worldwide, 12% of passengers use either a smartphone or

    tablet to check-in versus 7% in China.

    However, airlines are predicting aggressive adoption of self-

    service by passengers over the next three years, which will

    see them catch up to the global level by 2019.

    Despite the lower passenger adoption, Chinese airlines are

    ahead of global levels for many self-serv ice technologies.

    For example, 70% of Chinese airlines have already deployed

    automatic check-in, more than double the number of airlines

    globally, although only 3% of passengers are currently using

    it according to airlines in China, slightly below global levels.

    Providing staff with mobile dev ices to help with check-in

    and boarding is also twice as common in China, compared

    to elsewhere. 80% of Chinese airlines have staff with mobiledevices for passenger processing versus 41% of airlines

    globally.

    Another area where Chinese airlines are well ahead of their

    global counterparts is self-boarding gates. One-third have

    deployed them, more than three times the global level.

    For baggage self-service, Chinese airlines are largely in l ine

    with global levels. Home bag tag printing is available at 11%

    of airlines, while 44% allow bag tag printing from airport

    kiosks. The majority of Chinese airlines have implemented

    either assisted or unassisted bag-drop, although there is a

    much stronger implementation of unassisted bag-drop (33%

    of airlines) than seen globally (23%).

    78%OF AIRLINES IN CHINA PLAN MAJOR IOTPROJECTS BY 2019

    Increase DecreaseSame

    48%

    0%

    52%52%

    hnalobal

    2017

    37%

    11%

    Airlines in China more positive on future operating spend

    % of airlines expecting IT spend change for next year

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    BUILDING REVENUES

    Self-service technologies have revolutionized the way airlines

    can generate ancillary sales, and that is no different in China.

    Today, around 40% of total ancillary sales for Chinese airlines

    are made through the airline website or mobile app, and

    while slightly below the 46% globally, it points the way to the

    shifting mix of airline distribution in the country.

    By 2019, these two channels will represent 52% of total

    ancillary sales, with mobile dr iving the increase, climbing

    from 6% to 16% of ancillary sales as Chinese airlines rollout

    revenue generating services on their apps. Among the

    types of services being implemented by all airlines are, seat

    booking, baggage fees, Wi-Fi access and lounge access.

    Currently, frequent flier status is the main piece of data used

    to determine which offers to present to passengers, but by

    2019 three in four Chinese airlines will be using the more

    sophisticated techniques of customer behavior and location to

    attract sales.

    GROWING INTEREST IN THE IOT

    Interest in the opportunities offered by the IoT is higher in

    China than in the rest of the world. Nearly 80% of Chineseairlines plan to invest in major IoT programs by 2019.

    Currently the only IoT initiative already implemented at

    Chinese airlines is fuel/engine monitoring and this by just

    10% of airlines. Nonetheless, one in five Chinese airlines is

    evaluating IoT though R&D projects, with smart bag tags,

    asset tracking and monitoring the aircraft environment the

    main areas of focus. Another 40-50% of Chinese airlines

    expect to initiate projects in these three areas by 2019.

    Major focus for airlines in China on IoT for passenger and operational benefits

    % of airlines in China focusing resources on IoT initiatives over next three years

    Global

    61%

    Smart baggagetagging to enable

    continuoustracking

    50%

    Passengeridentification(single travel

    token)

    50% Global47% Global42%

    Global

    50%

    Monitoringlocation/condition

    of assets

    40%

    Manageequipmentcondition

    /consumablelevels

    40%

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    LESS FOCUS ON NEW TECHNOLOGIES

    For the most part Chinese airlines show less appetite to

    invest in emerging technologies than seen globally. The main

    exception is wearables, such as smart watches or glasses,

    where 90% of Chinese airlines expect to carry out some pilots

    or trials over the next ten years, compared to only 51% of

    airlines globally.

    Chinese airlines are also planning R&D projects with other

    emerging technologies. Over the next five years, 44% will

    evaluate biometric travel tokens, while artificial intelligence,

    which could provide longer term opportunities, will be trialed

    by 55% of Chinese airlines over the next decade.

    CHINA WELL POSITIONED FOR CONNECTEDAIRCRAFT

    The growing need to acquire new aircraft to cope with

    soaring passenger numbers means Chinese airlines have

    comparatively modern fleets so are well ahead of global

    levels for connected aircraft. In fact, 80% of Chinese airlines

    already fly or are just taking delivery of connected aircraftversus a 45% global average. In addition, only 10% have no

    connected aircraft on order, much lower than the 27% of

    airlines globally.

    Chinese airlines largely agree with the global consensus that

    the key benefit of connected aircraft will be improving the

    passenger experience, but there are 20% of Chinese airl ines

    that see the key benefit as operational improvements in the

    cockpit, such as advanced Electronic Fl ight Bags (EFBs) and

    real-time weather tracking, compared to a global average of

    12%.

    Global airlines

    Already operating & currently

    taking delivery ofconnected aircraft

    45%

    China

    Already operating & currently

    taking delivery ofconnected aircraft

    80%

    Airlines in China ahead of connected aircraft global curve

    % of airlines already operating and taking delivery of connected aircraft today

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    THE AIRLINE IT TRENDS SURVEY 2016 | SITA 2016

    METHODOLOGY

    ABOUT SITAS AIRLINE SURVEY

    SITAs Airline IT Trends Survey, conducted in association

    with Airline Business, is well established as the global

    benchmarking survey for the airline industry. The surveys

    (www.sita.aero/surveys) investigates emerging trends and

    technologies that are set to transform the industry in the

    years to come. Business Intelligence, Mobile Travel andPassenger Management are at the forefront of this change,

    and tracking their evolution is an important element in this

    survey. Many other emerging and established trends are

    tracked, and, as every year, we benchmarked the industry IT

    spending in the current year and beyond.

    The survey was first produced in 1999, and was designed

    to offer all air transport industry stakeholders the latest

    facts, figures and trends related to technology adoption and

    spending. Comparisons to previous surveys are made where

    appropriate, although the respondent sample may vary

    between years.

    During Spring this year questionnaires were sent to senior

    IT executives in each of the top 200 passenger carr iers,

    including low cost operators, together with carriers

    representing important players in the regional and leisure

    sectors. The survey represents the views and insights of over

    half of the top 100 carriers, providing a clear insight into IT

    strategic thinking and developments for the industry.

    The responses to this survey are confidential, and are

    received by an independent research company. The data

    analysis is based on the aggregated response of all airlines.

    For more information go to:

    www.sita.aero/surveys

    www.sita.aero/resources/it-trends-hub

    Africa/

    Middle East

    Asia-Pacific

    Europe

    Americas

    25m+

    Passengers Up to 3m

    Passengers

    10-25m

    Passengers

    31%25%

    20%24%

    Passengers carried

    Regions

    3-10m

    Passengers

    31

    20%

    23%

    14%

    34%

    24%

    28%

    23%

    34%

    Split of respondents

    RESPONDENTS PROFILE

    The survey is truly a global one, and we received a significant

    response from major carriers in every geographical region.

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    For further information,

    please contact sita by

    telephone or e-mail:

    Americas

    +1 770 850 4500

    [email protected]

    Asia Pacific

    +65 6545 3711

    [email protected]

    Europe

    +41 22 747 6111

    [email protected]

    Middle East, India & Africa

    +961 1 637300

    [email protected]

    Follow us on www.sita.aero/socialhub

    SITA 2016All trademarks acknowledged. Specifications subject to change without pr ior notice. This literature provides outlinei f i l d ( l ifi ll d h b SI TA i i i ) i f d

    #SITAINSIGHTS

    SITA AT A GLANCE

    SITA transforms air travel through technology -for airlines, at airports and on aircraft.

    Our vision is to be the chosen technology partner of

    the industry, a position we will attain through flawless

    customer service and a unique portfolio of IT and

    communications solutions that covers the industrys

    every need 24/7.

    We are the innovators of the industry. Our experts and

    developers keep it fuelled with a constant stream of

    ground-breaking products and solutions. We are the

    ones who see the potential in the latest technology

    and put it to work.

    Our customers include airlines, airports, GDSs and

    governments. We work with about 400 air transport

    industry members and 2,800 customers in over 200

    countries and territories.

    We are open, energetic and committed. We work in

    collaboration with our partners and customers to

    ensure we are always delivering the most ef fective,

    most efficient solutions.

    We own and operate the worlds most extensive

    communications network. Its the vital asset that

    keeps the global air transport industry connected.

    We are 100% owned by the air transport industry

    a unique status that enables us to understand and

    respond to its needs better than anyone.

    Our annual IT surveys for airlines, airports and

    passenger self-service are industry-renowned and

    the only ones of their kind.

    In 2015, we had consolidated revenues of US$1.7 billion.

    For further information, please visit www.sita.aero