Published November 4, 2024

Tapping into a $72B Opportunity: Insights from Rokt and Guest, Forrester at the 2024 World Aviation Festival

Behind every person sitting in their airline seat is a string of decisions that led them there. From booking accommodations to reserving a rental car, travelers put attention and intention into their destination. Where and how airlines can save them time—and, most importantly, provide value—is a huge opportunity.

At the 2024 World Aviation Festival in Amsterdam, Brendan Witcher, Vice President and Principal Analyst from Forrester, joined Anand Shah, Rokt’s Senior Vice President of Strategic Travel Partnerships, to explore how airlines can harness these decision-making moments to grow revenue by enhancing the customer experience. According to Rokt’s 2024 commissioned research conducted by Forrester Consulting, the opportunity is massive: the airline industry can potentially unlock an additional $72B in revenue by optimizing their strategies.

Unleashing this potential will require a shift in thinking. Instead of viewing revenue and customer experience as separate goals, the key is to recognize them as complementary and additive. The conversation outlined four opportunities airlines can focus on to drive revenue and customer satisfaction.

Key Takeaways

Airlines have the potential to unlock $72B in additional revenue by optimizing their ancillary strategies.
Relevance is built above and beyond personalization: offering the best service at the best time is key to improving both customer satisfaction and revenue.
AI capabilities offer massive opportunities to predict and meet customer needs in real-time, but three out of four travel organizations don’t fully use them.
Leveraging strategic partnerships like Rokt provides airlines with expertise, trust, and advanced solutions, enabling them to scale personalized offers without overextending internal resources.

1. Understand what’s truly important for customers

Today’s travelers expect more than just generic options when booking; they expect relevant experiences tailored to their unique needs. Whether selecting flights or adding extras like hotels or car rentals, travelers are looking for timely and relevant offers. Yet, only 33% of consumers feel brands successfully deliver on this promise. Airlines have a significant opportunity to deliver a relevant booking experience and provide a truly delightful experience. This is the core difference between personalization and relevance.

True relevance isn’t just about showing an offer; it’s about offering the best choices that reflect the traveler’s unique needs—like providing options that align with their destination, budget, and personal interests. As Brendan Witcher pointed out:

“Personalization isn’t determined by the brand; it’s determined by the customer.”

Airlines can delight customers and boost ancillary revenue by truly understanding what matters to travelers. Anand Shah highlighted the potential for alignment:

“It doesn’t need to be a balancing act between aligning revenue growth with customer experience, instead it can be an overlapping strategy.”

2. Enhance a traveler’s journey through technology

Technology can be a powerful ally in creating better travel experiences. However, 75% of airlines haven’t fully unlocked the potential of AI and advanced machine learning to anticipate customer needs and provide real-time relevant offers. Witcher elaborated:

“When you deliver the right customer experience, it not only drives revenue but also enhances customer satisfaction.”

The future of airline travel is about creating seamless, tech-driven experiences that make every stage of the journey more accessible and enjoyable. By adopting advanced technologies to optimize booking flows and offer tailored recommendations, airlines can turn everyday transactions into memorable moments and drive significant revenue.

3. Scale relevant offers

Today’s travelers know what they want, allowing airlines to enhance their ancillary strategies. Airlines can connect with customers through timely and relevant offers that meet their needs by using engaging content. Thanks to generative AI and machine learning advances, creating relevant, one-to-one content at scale is now more achievable than ever. As Shah mentioned,

“Organizations have the opportunity to enhance their delivery of valuable cross-sells, upsells, and ancillary revenue. By focusing on scaling these efforts in real-time, they can unlock significant potential and drive better outcomes for both customers and the business.”

Imagine being able to offer a traveler a seat upgrade, a lounge pass, or even local experiences based on their preferences in real-time. This is the future of customer engagement, and airlines that embrace this approach will foster deeper relationships, drive more revenue, and gain a competitive edge.

4. Leverage partnerships

Collaboration is key in the airline industry, and one of the most exciting opportunities lies in forging external partnerships to enhance the traveler experience. The study found that 60% of travel organizations recognize the need for more effective strategies to balance revenue growth with customer satisfaction. Witcher stressed the importance of partnerships:

“If you’re expanding your ancillary revenue streams, it’s essential to partner with companies that specialize in this area as their core business.”

Airlines can offer seamless, end-to-end experiences that add genuine customer value by partnering with the right tech providers. These partnerships help airlines expand their offerings without the burden of developing everything in-house—delivering more choices to travelers and growing revenue through relevant cross-sell and upsell opportunities

The future of travel: where revenue and customer delight go hand-in-hand

The future of travel is more than getting passengers from point A to point B; it’s about creating meaningful experiences along the way. By embracing four key opportunities—understanding customer needs, leveraging advanced technology, scaling relevant offers, and forming strategic partnerships—airlines can unlock new levels of ancillary revenue. This approach also helps deliver customer experiences that keep travelers coming back.

For more insights on how to seize these opportunities, visit Rokt’s Travel Solutions.