Airline satisfaction steady, tech investment urged by IATA

Airline passenger satisfaction has maintained a high level of stability this year, according to findings from the International Air Transport Association (IATA). Despite this consistency, the association has highlighted the need for further investment in technology to better meet customer demands.

Insights from IATA’s Global Passenger Survey 2024, based on feedback from over 10,000 respondents across 200 countries, revealed that passenger satisfaction with air travel remains at 82% for 2024, mirroring last year’s figures. This marks an improvement from 75% in 2019.

Nick Careen, IATA Senior Vice-President of Operations, Safety, and Security, noted that aspects like bookings, check-in, and arrivals received approval ratings exceeding 80%, largely due to advancements in digitalisation.

“Satisfaction rates could exceed 90% if the entire travel process, from booking to boarding, becomes fully digitalised.”

However, areas such as border controls and baggage collection saw satisfaction rates dip below 66%, with long queues being the primary concern.

Despite the push for digitalisation, only 46% of respondents reported using biometric processes at airports in 2024. The survey underscored that speed and convenience continue to be top priorities for passengers.

Improvements in parallel

IATA suggested that improvements in border control could be achieved by streamlining visa procedures before passengers reach airports. Similarly, implementing a baggage delivery service before airport arrival could enhance the travel experience.

In the context of financial investments, Careen pointed out that airlines face a low net profit margin of US$6.14 per passenger. This limitation affects budgets allocated for technology investments, which are often overshadowed by the substantial expenses associated with aircraft investments and staffing costs.

“Airlines will keep investing in technology if there is demonstrable customer demand and a viable return on investment.”

Careen emphasised the role of government regulations in supporting the sector.

Technological advancements over the past decade have significantly transformed travel processes. For instance, passengers with only carry-on luggage can now complete check-in remotely, bypassing direct interactions with airline staff during security checks.

The survey also highlighted a generational shift, with Generation Z showing a strong inclination towards using technology to enhance their travel experiences. Notably, 51% of passengers under the age of 25 prefer digital wallets for transactions, compared to the overall survey average of 21%.

Gen Z willing

Moreover, half of the Gen Z respondents expressed a willingness to use biometric processes, provided data security is assured. This preference stands above the total survey average of 39%.

Careen expressed optimism that ongoing advancements in biometrics and digital processes would eventually lead to reduced costs for passengers, enabling airlines to offer more personalized travel experiences.

The IATA recently convened its World Finance Symposium and World Passenger Symposium in Bangkok, where these findings and future strategies were discussed, reported Bangkok Post.