Welcome Aboard: The Importance of CX in Aviation
The airline industry is finally turning a corner after a few turbulent years during the pandemic. Profitability is set to improve, with net profits for the sector expected to hit almost $26 billion in 20241 . However, the path to sustainable growth and profits will be thorny as the industry faces mounting competition from traditional rivals and emerging players with disruptive offers.
Against this backdrop, customer experience and loyalty emerge as a significant differentiator.
The airline industry has always been highly customer-centric, as its success hinges on delivering exceptional customer experiences and repeat passengers, especially in the lucrative corporate sector. Most airlines rely on NPS surveys to measure customer satisfaction and loyalty. According to Forrester, improving CX by just one point can add $1 billion in revenues. At the same time, McKinsey says that enhancing the customer experience has increased sales revenues by 2 to 7 percent and profitability by 1 to 2 percent2
Airlines are motivated by these findings, as a recent American Customer Satisfaction Index (ACSI) 2023 Travel Report stated that the industry's average customer satisfaction score grew by 8% from the earlier year3 . The message is simple - by prioritizing customer satisfaction, loyalty, and differentiation, airlines build strong brands, increase revenue, and foster long-term success.
This paper explores the myriad factors impacting customer experience and how to enhance it with the extensive use of modern technology.
