CAPA’s World Aviation Summit – CAPA Think Tank: defining aviation’s future path
Consumer patterns when it comes to searching, booking and the physical act of travel continue to shift in the post-pandemic world.
Flexibility and agility were keywords during the pandemic, and these remain priorities for consumers.
Airlines are responding to the changes, but accommodating new travel patterns is adding to industry costs, disrupting the stability and predictability of operations, and having revenue and planning impacts.
- Flexibility, agility and uncertainty persist for consumers in wake of the COVID-19 pandemic.
- Watch EXCLUSIVE VIDEO coverage from panel discussions at CAPA's World Aviation Summit.
- The 2023 edition of the CAPA World Aviation Summit & Awards for Excellence took place in Abu Dhabi, in the United Arab Emirates.
- The 2024 edition, under a new name, CAPA Airline Leader Summit World & Awards for Excellence, is to be held on 21-22 November 2024 in Belgrade, Serbia.
Flexibility, agility and uncertainty persist for consumers in wake of pandemic
With rules around borders and restrictions constantly changing during the pandemic, consumers put a priority on timely information and flexibility of arrangements to counter the uncertainties and disruption of their travel.
Consumers increasingly turned to social media as a source of travel inspiration and information; they were more willing to book online and through mobile channels, and shifted their travel planning closer to intended departure dates.
Booking horizons shrank, with demand for lastminute and day-of-travel fare purchase growing substantially. Passengers also became more open to seeking alternative travel arrangements, whether it was opting for novel destinations, being more willing to travel during off-peak times of day, or to book outside the normal holiday periods.
Airlines responded by waiving change/cancellation fees for travel adjustments, offering refunds or travel credits for changed plans and introducing new flexible fare options.
Networks were modified and schedules adjusted to cope with changing destination preferences and travel behaviours, and to ensure that flights would operate on time.
Although airline operations have (mostly) stabilised and COVID-19 era travel policies have been unwound, consumers remain cautious; their sensitivity to disruption is elevated. The demand for timely information and travel flexibility is not going away, and travel patterns will have to continue adjusting.
Consumers are more inclined to change their travel plans than before, pushing up no-show rates and demanding greater flexibility when it comes to rebooking.
Travellers have retained an emphasis on direct connections over hubs, and are still seeking more flexible options and accommodation of last-minute itinerary changes from travel providers.
Consumers also want providers to continue to embrace technology. With the growth of the 'always online' traveller, demand for up-todate and customised information has become pervasive across all stages of the travel process.
The rise of hybrid and remote working arrangements also has substantial implications for business travel and airline planning. Mid-week travel for business has softened while early and late week travel demand has strengthened, as employees seek to be in the office during the mid-week period but return home for the weekend.
This has implications for airfares and airline networks. Passenger yields for peak travel days are elevated, but fares outside these peaks have dropped notably. Airlines are also having to restructure their network and fleet arrangements in order to accommodate these new peaks and troughs.
The landscape of consumer expectations and travel behaviour continues to shift. While booking and travel windows slowly return to more normal patterns, the demand for flexibility and agility remains.
Insights from CAPA's World Aviation Summit
This was the topic of a panel discussion at the CAPA World Aviation Summit in Abu Dhabi at the end of Nov-2023.
The session was moderated by CNN, Anchor, Richard Quest and included insightful observations from AirBaltic, CEO, Martin Gauss; SWISS, CCO, Tamur Goudarzi Pour; GACA, EVP Strategy and Business Intelligence, Mohammed Alkhuraisi; SkyTeam, CEO, Patrick Roux; and Saudia, CEO, Ibrahim Koshy.
You can view the full session via the following CAPA TV recording.
About the CAPA World Aviation Summit
The 2023 edition of the CAPA World Aviation Summit & Awards for Excellence took place in Abu Dhabi, in the United Arab Emirates. The event, held on 28-29 November, and hosted by the Etihad Aviation Group, brought together thought leaders from aviation and the wider travel industry, including airline and airport executives, key suppliers, technology partners and regulators.
The focus for the summit was the biggest trends which aviation faced in 2023, with global airline leaders sharing their insights and perspectives on the changes brought about in the aviation sector over the past year.
The topics ranged from rising costs, environmental sustainability, operational issues, international recovery, digital transformation, supply chains and more, and also provided some guidance on the future trajectory of air travel in 2024.
This year's event to be hosted in Belgrade, Serbia
With the air travel industry having undergone an immense shift over the past few years, it is more important than ever to understand the strategic and competitive landscape across the industry.
The 2024 edition, under a new name, CAPA Airline Leader Summit World & Awards for Excellence, is to be held on 21-22 November 2024 in Belgrade, Serbia. Hosted by the City of Belgrade and Air Serbia, the event will tap global aviation leaders for an exciting examination of the direction the aviation industry is taking.
It will provide unique global perspective, unpacking the changes that are shaping the way airlines, airports and sector suppliers are doing business.