More and more airline passengers are using smartphone and other mobile devices to book airline tickets and other travel arrangement. Airline industry is getting more competitive . There are three factors(passengers, payment, profitability) that are very important to airline companies.
- Passengers:
There is a significant large demand of passengers booking through mobile phones. Based on the source[1], 84 percent of travelers requires to access their travel information as they travel, even 60% needs internet even on vacation. About 20 percent of passengers book flights over mobile phones, and there is a potential of increase of the percentage. Over 70 percent of people plan a trip with mobile phones. Airline companies must provide payment methods over mobile devices to earn the revenue.
- Payment:
The mobile payment industry is growing really fast and airlines should catch the revenues from mobile payment ecosystem and transfer from credit/debit card payment. Airlines shall work with mobile payment providers who are already in the market to be more cost effective.
- Profitability:
Traditionally, airlines’ book depends on travel agencies, but airlines have to share its profit with those travel agencies. Now, airlines keep it profit through direct-channel sales and loyalty programs. However, in order to keep mobile users into their direct sale network, airlines shall also include mobile payment as their strategy planning.