Post on 31-Jul-2020
AIR TRANSPORT
IT INSIGHTS2019
AIRLINE
AIRLINE | IT SPEND
AIRLINE INSIGHTS
AIR TRANSPORT
IT INSIGHTSPages 3-18 Pages 20-34
AIRPORT
2019
© SITA 2019 Air Transport IT Insights
AIRLINE IT TRENDSAirline CIOs share an expectation that IT spend will continue to increase in the medium term, reaching US$40bn in 2018 after several years of virtually flat growth. Top investment priorities include cloud computing, cybersecurity and business intelligence – technologies which airlines see as ‘doing the heavy lifting’ to realize digital transformation.
A key focus of airline technology investments is to deliver an ever-more efficient passenger journey by reducing queues, speeding the transition through airport processes and providing better information to travelers. Passengers are already reaping the benefits. Last year 60% of airline CIOs recorded up to a 20% year-on-year improvement in passenger satisfaction rate, while 45% recorded an improvement in processing speed of up to 20%.
Airlines continue to strive towards a fully self-serviced passenger journey by rolling out automated self-boarding. The introduction of biometric identity at the departure gate and self-boarding over the next few years will bring about the next phase of efficiency.
A similar evolution is underway in the functionality provided by passenger mobile apps. With check-in and mobile boarding apps becoming almost universal, airlines are turning their attention to personalized services as well as artificial intelligence (AI)-driven chatbot services. Increasing numbers are looking to enrich self-service by keeping passengers informed about missing bags, irregular operations and service issues.
The direction of airline IT over the longer term is strongly bound to what AI can deliver. Today’s key applications include virtual agents, chatbots, and predictive analytics, but as AI enters the mainstream, realizing the potential of this emerging technology promises to bring many exciting possibilities.
3© SITA 2019 Air Transport IT Insights
AIRLINE IT TRENDSAIR TRANSPORT IT INSIGHTS
PAGES 12-14
SELF-SERVICEINVESTMENT PLANS
PAGES 7-11 PAGE 16-18
TECHNOLOGIES
PAGE 15
MOBILE
PAGES 5-6
IT SPEND
© SITA 2019 Air Transport IT Insights
AIRLINE | IT SPEND
5
AIRLINE | IT SPEND
© SITA 2019 Air Transport IT Insights
AIRLINE IT SPEND ROSE SIGNIFICANTLY IN 2018
ANALYSIS
IT and Telecom spend for airlinesAirline IT budgets plateaued in 2016 - 2017at 3.12% total IT spend as a % of revenue. But in 2018, and as predicted by CIOs, we have seen a significant rise. Total airline IT spend has increased substantially in 2018 to 4.84% ofairline revenue.
Airline operating spend has now reached 2.89% of total revenue on IT compared to 1.90% in 2017. This level of spend is predicted to remain largely stable, with 2019 spend expected to be 2.91%.
Capital spend also increased in 2018 to reach 1.95% in 2018 – up from 1.24% in 2017. Airlines are predicting an increase in capital spend in 2019 to rise to 2.31%.
Looking at 2019, predictions are positive as airlines have gradually made more investment on growing business and enabling digital transformation. This increase is heavily influenced by a rise in CIO operating spend among Tier 1 airlines across all regions.
24.8
3.12% 3.14%
1.91% 1.90%
1.21% 1.24%1%
2%
3%
20US$BN
40US$BN
2016 (Actual) 2017 (Actual) 2018 (Actual)
40.8
4.84%
2.89%
1.95%
21.94%
Planned 2019
49.6
5.22%
2.91%
2.31%
5%
Estimated value of IT spendTotal IT spendOperating IT spendCapital IT spend
IT sp
end
as a
% o
f rev
enue
IT sp
end
in U
S$bn
Estimated value of IT spendTotal IT spendOperating IT spendCapital IT spend
AIRLINE | IT SPEND
2020
Operating spend Capital spend
28%
49%
23%
Expected change in IT spend as % of revenue.
2019
66%
22%
12% 2019
17%
76%
7%2020
25%
55%
20%
Increase
Stay the same
Decrease
Increase
Stay the same
Decrease
2019
17%
76%
7%2018
Operating spend Capital spend
40%
32%
28%
2018
40%
42%
18%
Expected change in IT spend as % of revenue.
2019
66%
22%
12%
6
AIRLINE | IT SPEND
© SITA 2019 Air Transport IT Insights
ANALYSIS
Airline IT spend predictionsLooking ahead to 2020, 49% of airlines predict their operating spend will increase, 28% predict it will stay the same, while 23% forecast a decrease.
The majority of airlines (55%) also predict their capital expenditure will increase as we move into 2020, while 25% think it will remain unchanged.
CIOS ARE OPTIMISTIC ABOUT 2020 TRENDS FOR IT SPEND
% of airlines planning major programs / R&D by 2022.
Cybersecurity
Applications for passenger mobile services
Cloud services
Data centers
92%
95%96%
88%
100%
Business intelligence
% of airlines planning major programs / R&D by 2022.
Cybersecurity
Applications for passenger mobile services
Cloud services
Data centers
92%
95%96%
88%
100%
Business intelligence
7© SITA 2019 Air Transport IT Insights
AIRLINE | INVESTMENT PLANS
TOP INVESTMENT PRIORITIES OF AIRLINES ARE HIGH ON AIRLINE CIO AGENDAS CLOUD, CYBERSECURITY AND BUSINESS INTELLIGENCEANALYSIS
Airline CIO priorities for IT Services by 2022 Airline CIOs are focusing their IT strategies on digital transformation, with cloud services (100%) and cybersecurity initiatives (96%) being the greatest areas for investment by 2020.
Investment in cloud services has increased since 2016 and is clearly the top priority on the CIO agenda across airlines: 83% of airlines have major programs in place for cloud and a further 16% are running a pilot.
Likewise, cybersecurity is a high priority, ranking second on the airline CIO agenda, with 86% having a major cybersecurity program in place and another 10% running a pilot.
BI Solutions (95%) and mobile apps for passenger services (92%) are also receiving significant investment.
% of airlines with cybersecurity investment priorities in 2019.
Achieve regulatory compliance
Threat intelligence
Cloud security
Identity and access management
Establish a security framework and program
Build/Enhance the Security Operations Center (SOC)
79%72%65%
64%61%56%
Employee awareness & training 83%
Telecommunications and network security 65%7%
5%
10%
2017 2018 2019
15%
7.19%
9.64%
% of IT budget spent on cybersecurity.
Cybersecurity spend Cybersecurity investment priorities
AIRLINE | INVESTMENT PRIORITIES FOR AIRLINE OPERATIONS
8© SITA 2019 Air Transport IT Insights
AIRLINE | INVESTMENT PLANS
ANALYSIS
Airline cybersecurity plansThe importance of cybersecurity for airlines continues to grow.
Airlines spent 7% of their IT budget on cybersecurity for two years in a row from 2017 to 2018. This is set to rise to 9.64% in 2019.
Cyber investment priorities are reflective of the challenges airlines face. Top of the list is ‘employee awareness & training’ with 83% of airlines investing in this area in 2019 (same as 2018). This is closely followed by investment in ‘regulatory compliance’ (79%). Those are common spending priorities in 2019.
We see an emerging technology trend with 72% of airlines prioritizing ‘threat intelligence’ investment to help them collect and analyze threat data. This is ranked third, up from 2018.
AIRLINES INCREASE CYBERSECURITY FOCUS IN BUDGET AND INVESTMENT PRIORITIES
AIRLINE | INVESTMENT PRIORITIES
0%
Baggage processing
Passenger processing for retail
Aircraft turnaround
Passenger processing for operations
20% 40% 60% 80% 100%
17%
25%
11%
12%44%
36%39%
50%33%
% of airlines with implemented and planned business intelligence initiatives.
39% 50%
45%
Implemented By end of 2022 No plans ImplementedBy end of 2022No plans
0%
Baggage processing
Passenger processing for retail
Aircraft turnaround
Passenger processing for operations
20% 40% 60% 80% 100%
17%
25%
11%
12%44%
36%39%
50%33%
% of airlines with implemented and planned business intelligence initiatives.
39% 50%
45%
Implemented By end of 2022 No plans
9© SITA 2019 Air Transport IT Insights
AIRLINE | INVESTMENT PLANS
THE LEADING USE OF BUSINESS INTELLIGENCE FOR AIRLINES IS PASSENGER PROCESSING
ANALYSIS
Airlines’ business intelligence plans‘Passenger processing for operations’is currently the leading use of business intelligence with 44% of airlines having implemented an initiative so far. A further 45% plan to invest in this area by 2022.
‘Aircraft turnaround’ is ranked as the second business intelligence investment area this year: 39% of airlines have implemented initiatives relating to aircraft turnaround, and a further 50% have plans by 2022.
AIRLINE | INVESTMENT PRIORITIES
Implemented
By end of 2022
No Plans
Passenger processing at off-airport locations(e.g. hotels/intermodal transport locations)
0%
Customer service staff queue checking withmobile device
Wait time notifications to passenger mobile devices
Wait time information embedded in airline app
Screens displaying real-time wait time information
Wait time monitoring (e.g. via sensors/beacons)
10% 20% 30% 40% 50%
35%8%
28%
31%
32%
32%
47%
% of airlines with passenger flow management solutions.
Mobile electronic capture of requirements pre-boarding 56%
60% 70% 80% 90% 100%
21%23%
33%21%
38% 30%
30%38%
43% 26%
31% 41%
57%
Implemented By end of 2022 No plans
Passenger processing at off-airport locations(e.g. hotels/intermodal transport locations)
0%
Customer service staff queue checking withmobile device
Wait time notifications to passenger mobile devices
Wait time information embedded in airline app
Screens displaying real-time wait time information
Wait time monitoring (e.g. via sensors/beacons)
10% 20% 30% 40% 50%
35%8%
28%
31%
32%
32%
47%
% of airlines with passenger flow management solutions.
Mobile electronic capture of requirements pre-boarding 56%
60% 70% 80% 90% 100%
21%23%
33%21%
38% 30%
30%38%
43% 26%
31% 41%
57%
Implemented By end of 2022 No plans
10© SITA 2019 Air Transport IT Insights
AIRLINE | INVESTMENT PLANS
AIRLINES WANT TO PROVIDE MORE MOBILE SERVICES FOR PASSENGER FLOW MANAGEMENT
ANALYSIS
Passenger flow investment plansInvestment in landside areas of the airport is also on the increase.
Mobile electronic capture of requirements preboarding continues to be the largest investment area. 56% of airlines have now implemented this (up from 50% in 2018). A further 23% plan to invest by the end of 2022.
Passenger processing at off-airport locations has also increased significantly with 47% having implemented this compared to 37% in 2018.
By 2022, 74% of airlines also plan to have wait times embedded in their mobile app. 31% have already done this - up from 17% in 2018.
AIRLINE | INVESTMENT PRIORITIES ON-BOARD
% of airlines with passenger processing performance rate in 2018versus previous year.
% of airlines with KPIs measuring passenger processing performance.
64%Passenger satisfaction rate
Average processing speed(pax per hour)
Business performance(ROI, revenue)
63%
42%
Over 20% increase Up to 20% increase Same Up to 20% decrease
Passenger satisfaction
13%
18%
9%
60%
Average processing speed
26%
21%
8%
45%
Business performance
20%
3%
0%
77%
Passenger processing KPIs Passenger processing performance in 2018
Over 20% increase
Up to 20% increase
Same
Up to 20% decrease% of airlines with passenger processing performance rate in 2018
versus previous year.
% of airlines with KPIs measuring passenger processing performance.
64%Passenger satisfaction rate
Average processing speed(pax per hour)
Business performance(ROI, revenue)
63%
42%
Over 20% increase Up to 20% increase Same Up to 20% decrease
Passenger satisfaction
13%
18%
9%
60%
Average processing speed
26%
21%
8%
45%
Business performance
20%
3%
0%
77%
Passenger processing KPIs Passenger processing performance in 2018
% of airlines with passenger processing performance rate in 2018versus previous year.
% of airlines with KPIs measuring passenger processing performance.
64%Passenger satisfaction rate
Average processing speed(pax per hour)
Business performance(ROI, revenue)
63%
42%
Over 20% increase Up to 20% increase Same Up to 20% decrease
Passenger satisfaction
13%
18%
9%
60%
Average processing speed
26%
21%
8%
45%
Business performance
20%
3%
0%
77%
Passenger processing KPIs Passenger processing performance in 2018
11
% of airlines with KPIs measuring passenger processing perfomance.
% of airlines with passengerprocessing performance rate in 2018 versus previous year.
© SITA 2019 Air Transport IT Insights
AIRLINE | INVESTMENT PLANS
ANALYSIS
Passenger flow performanceAirlines measure the performance of their passenger self-service processing using two primary metrics:
• their passenger satisfaction rating, which is used by 64% of airlines.
• an average processing speed measure (i.e. number of passengers per hour) as used by 63% of airlines.
Where airlines are measuring the performance of their self-service passenger processing using their average passenger satisfaction rating, 60% of those airlines confirm an improved passenger satisfaction rate of up to 20% in 2018 compared to previous year.
Of those measuring their average processing speed, 45% saw an increase in performance in 2018 compared to the previous year.
AIRLINES CONFIRM AN IMPROVED PASSENGER SATISFACTION RATE DUE TO PASSENGER FLOW INVESTMENT
AIRLINE | SELF-SERVICE
Assisted
Unassisted
Real-timeinfo for staff
Real-time infofor passengers
Off site
Bag-drop
Baggage tracking
Printing bag-tagsat home
Web check-in
Mobile deviceassistance from staff
Printing bag-tags at airport
2%
Check-in
Bag-tag
Automatic check-in(no passenger self-service)
% of airlines with implemented or planned self-service initiatives.
13%90% 74%
55%28%38%
44%
24%27%37%
34%
59%32%
25%26%
22%55%
16%74%
Self-boarding(assisted)
23%44%
Boarding
2019 2022
Assisted
Unassisted
Real-timeinfo for staff
Real-time infofor passengers
Off site
Bag-drop
Baggage tracking
Printing bag-tagsat home
Web check-in
Mobile deviceassistance from staff
Printing bag-tags at airport
2%
Check-in
Bag-tag
Automatic check-in(no passenger self-service)
% of airlines with implemented or planned self-service initiatives.
13%90% 74%
55%28%38%
44%
24%27%37%
34%
59%32%
25%26%
22%55%
16%74%
Self-boarding(assisted)
23%44%
Boarding
2019 20222019
2022
12© SITA 2019 Air Transport IT Insights
AIRLINE | PASSENGER SERVICES
MAJORITY OF AIRLINES PROVIDE UNASSISTED BAG-DROP SERVICE TO PASSENGERS
ANALYSIS
Airline self-service investmentWeb check-in and static kiosks are theprimary self-service check-in methods, but the self checkin trend is moving towards automatic check-in. This is implemented by 34% of airlines in 2019 (up from 24% in 2018), and 37% are planning to do so by 2022.
Assisted bag-drop is widely available with 74% of airlines having implemented this in 2019. We see a growing focus area as well towards unassisted bag-drop with 55% having implemented it in 2019, up from 45% in 2018. Off-site bag drop is also offered by 24% of airlines and is expected to rise to 51% by the end of 2022.
In the context of IATA’s Resolution 753, 59% of airlines have implemented real-time bag tracking information for staff in 2019. While only 22% have implemented real-time bag tracking information for passengers, 77% plan to have it implemented by the end of 2022.
AIRLINE | SELF-SERVICE
Below 50% ofroute network
% of airlines with bag tracking capabilities across their network routes.
More than 50% of route network
0%
10%
20%
30%
40%
60%
50%58%
54%
25%
19% 18% 19%
Over 75% ofroute network
6%
14%
48%
No compliancereadiness
17% 15%
7%
2018 2019 2022
Below 50% ofroute network
% of airlines with bag tracking capabilities across their network routes.
More than 50% of route network
0%
10%
20%
30%
40%
60%
50%58%
54%
25%
19% 18% 19%
Over 75% ofroute network
6%
14%
48%
No compliancereadiness
17% 15%
7%
2018 2019 20222018
2019
2022
13© SITA 2019 Air Transport IT Insights
AIRLINE | PASSENGER SERVICES
ANALYSIS
Bag tracking solutionsOver the past year, a growing number of airlines have introduced baggage tracking at key points in the journey – check-in, loading onto the aircraft, transfers and arrival – in response to IATA’s Resolution 753 that bags should be tracked from start to finish.
Airlines’ momentum around baggage tracking shows little improvement since 2018 with just 14% of airlines able to track baggage across more than 75% of their route network (up from 6%).
The vast majority of airlines in 2019 have capabilities to track bags below 50% of their route network.
Airlines are optimistic though for 2022, with 48% of airlines planning to have bag tracking capabilities over 75% of their network routes.
AIRLINES STILL WANT TO SCALE UP THEIR BAG TRACKING CAPABILITIES
AIRLINE | MOBILE
% of airlines with an implemented or planned passenger ID management solution.
63%77%
22%Staff checking &
scanning ID documentation
12%5%
56%Self-boarding gates using
biometric & ID documentation
7%5%
33%Self-boarding gates
using biometric only
ROME
08.3023D
520192022
2018
% of airlines with an implemented or planned passenger ID management solution.
63%77%
22%Staff checking &
scanning ID documentation
12%5%
56%Self-boarding gates using
biometric & ID documentation
7%5%
33%Self-boarding gates
using biometric only
ROME
08.3023D
520192022
20182018
2019
2022
14© SITA 2019 Air Transport IT Insights
AIRLINE | PASSENGER SERVICES
ANALYSIS
Passenger identity management In 2019, 63% of airlines have staff checking and scanning ID documentation during aircraft boarding (down from 77% in 2018).
Airlines are looking to invest further in selfboarding automation:
• Self-boarding gates using biometric & ID documentation are also beginning to be embraced, with 12% having implemented this already (up from 5% in 2018) and a further 56% planning to do so by the end of 2022.
• Self-boarding gates using only biometric data are less common, with just 7% of airlines having implemented them and only a further 33% planning to implement them by the end of 2022.
AIRLINES PLAN MORE INVESTMENT FOR SELF-BOARDING AUTOMATION
AIRLINE | MOBILE
83%
28%30%
33%27%
25%13%
NotificationsSend baggage location status
updates
Baggage locationstatus
Location-basednotifications
16%16%
7%8%
E-commerceSell Newspaper/
Magazines
Sell Movies/TV
Promotion ofairline offers
Flight discovery
BARCELONA
10.10
00123
% of airlines with implemented passenger mobile services.
8%
8%
81%
67%
90%83%
71%
38%36%
Real-time flightupdates via
social media
81%90%
Notification aboutflight status
7%
2%
7%
31%
68%
39%
37%27%
40%39%
Customer ServiceAI driven
chatbot services
Missing baggagecommunication
Self-service forirregular operations
Customerrelationship
e.g. issues resolution
14%
11%
43%
13%
49%54%
32%
Boarding 84%78%
Airport process
Check-In
Check-in 87%
91%
70%
73%
2019 2018 2017
83%
28%30%
33%27%
25%13%
NotificationsSend baggage location status
updates
Baggage locationstatus
Location-basednotifications
16%16%
7%8%
E-commerceSell Newspaper/
Magazines
Sell Movies/TV
Promotion ofairline offers
Flight discovery
BARCELONA
10.10
00123
% of airlines with implemented passenger mobile services.
8%
8%
81%
67%
90%83%
71%
38%36%
Real-time flightupdates via
social media
81%90%
Notification aboutflight status
7%
2%
7%
31%
68%
39%
37%27%
40%39%
Customer ServiceAI driven
chatbot services
Missing baggagecommunication
Self-service forirregular operations
Customerrelationship
e.g. issues resolution
14%
11%
43%
13%
49%54%
32%
Boarding 84%78%
Airport process
Check-In
Check-in 87%
91%
70%
73%
2019 2018 2017
83%
28%30%
33%27%
25%13%
NotificationsSend baggage location status
updates
Baggage locationstatus
Location-basednotifications
16%16%
7%8%
E-commerceSell Newspaper/
Magazines
Sell Movies/TV
Promotion ofairline offers
Flight discovery
BARCELONA
10.10
00123
% of airlines with implemented passenger mobile services.
8%
8%
81%
67%
90%83%
71%
38%36%
Real-time flightupdates via
social media
81%90%
Notification aboutflight status
7%
2%
7%
31%
68%
39%
37%27%
40%39%
Customer ServiceAI driven
chatbot services
Missing baggagecommunication
Self-service forirregular operations
Customerrelationship
e.g. issues resolution
14%
11%
43%
13%
49%54%
32%
Boarding 84%78%
Airport process
Check-In
Check-in 87%
91%
70%
73%
2019 2018 2017
83%
28%30%
33%27%
25%13%
NotificationsSend baggage location status
updates
Baggage locationstatus
Location-basednotifications
16%16%
7%8%
E-commerceSell Newspaper/
Magazines
Sell Movies/TV
Promotion ofairline offers
Flight discovery
BARCELONA
10.10
00123
% of airlines with implemented passenger mobile services.
8%
8%
81%
67%
90%83%
71%
38%36%
Real-time flightupdates via
social media
81%90%
Notification aboutflight status
7%
2%
7%
31%
68%
39%
37%27%
40%39%
Customer ServiceAI driven
chatbot services
Missing baggagecommunication
Self-service forirregular operations
Customerrelationship
e.g. issues resolution
14%
11%
43%
13%
49%54%
32%
Boarding 84%78%
Airport process
Check-In
Check-in 87%
91%
70%
73%
2019 2018 2017
2017
20192018
83%
28%30%
33%27%
25%13%
NotificationsSend baggage location status
updates
Baggage locationstatus
Location-basednotifications
16%16%
7%8%
E-commerceSell Newspaper/
Magazines
Sell Movies/TV
Promotion ofairline offers
Flight discovery
BARCELONA
10.10
00123
% of airlines with implemented passenger mobile services.
8%
8%
81%
67%
90%83%
71%
38%36%
Real-time flightupdates via
social media
81%90%
Notification aboutflight status
7%
2%
7%
31%
68%
39%
37%27%
40%39%
Customer ServiceAI driven
chatbot services
Missing baggagecommunication
Self-service forirregular operations
Customerrelationship
e.g. issues resolution
14%
11%
43%
13%
49%54%
32%
Boarding 84%78%
Airport process
Check-In
Check-in 87%
91%
70%
73%
2019 2018 2017
15© SITA 2019 Air Transport IT Insights
AIRLINE | MOBILE
INFORMATION SERVICES – THE NEXT WAVE OF AIRLINE MOBILE APP ENHANCEMENT
ANALYSIS
Passenger mobile services Many mobile app services are becoming universal when it comes to mobile check-in and mobile boarding services. These are provided by more than 8 out of 10 airlines in 2019.
Airlines have also implemented mobile app services to promote flight discovery (83%) and airline offers (81%).
The next wave of mobile app services implemented by airlines aim to provide more personalized services.
In 2019, the majority of airlines (54%) provide customer service issues to mobile apps and are looking to enrich customer services on mobile apps related to irregular ops (43%) and chatbots services (37%).
More airlines are also adding notification services to enhance the value of their mobile app:
• A quarter of airlines provide location-based notifications (up from 13% in 2018).
• 33% of airlines have implemented baggage location status updates in 2019.
AIRLINE | INVESTMENT PRIORITIES FOR TECHNOLOGIES
Artificial intelligence Blockchain Robots/Autonomous machines
Wearable technology for staff
% of airlines planning major programs / R&D by 2022.
45%
44%
13%
36%
Mixed reality
7%
48%
57%
15% 14%
40%
Major Program
R&D
Major Program
R&D
Artificial intelligence Blockchain Robots/Autonomous machines
Wearable technology for staff
% of airlines planning major programs / R&D by 2022.
45%
44%
13%
36%
Mixed reality
7%
48%
57%
15% 14%
40%
Major Program
R&D
16© SITA 2019 Air Transport IT Insights
AIRLINE | TECHNOLOGIES
ANALYSIS
Airline CIO priorities for technologiesArtificial intelligence (AI) continues to bea focal point for airline investment. AI has become the most common technology that airlines are currently investing in: 44% have a major program (up from 32%) and a further 45% are running a pilot.
Blockchain is also on the rise with 72% of airlines investing (compared to 69% in 2018), 15% in a major program and 57% in a pilot.
Investment in other emerging technologies is less common. The majority of airlines have a major program and R&D in mixed reality (7% major, 48% pilot), autonomous machines (14% major, 40% pilot) and in wearable tech for staff (13% major, 36% pilot).
AIRLINES INVESTMENT IN EMERGING TECH: AI AND BLOCKCHAIN TO BE A FOCAL POINT
AIRLINE | INNOVATION
% of airlines with AI use cases currently implemented or planned by 2022.
SPECIALOFFER
44%
Automatic scheduling (e.g. of repairs/maintenance)
89%
Virtual agents and chatbots
51%
Pattern recognitionPredictive analytics
75%64%
Targeted advertising/personalization
47%
Brand perception improvement (e.g. social
media/customer feedback analysis)
HI TIM
% of airlines with AI use cases currently implemented or planned by 2022.
SPECIALOFFER
44%
Automatic scheduling (e.g. of repairs/maintenance)
89%
Virtual agents and chatbots
51%
Pattern recognitionPredictive analytics
75%64%
Targeted advertising/personalization
47%
Brand perception improvement (e.g. social
media/customer feedback analysis)
HI TIM
17© SITA 2019 Air Transport IT Insights
AIRLINE | TECHNOLOGIES
ANALYSIS
Use of AI for airlines ‘Virtual agents and chatbots’ are the mostcommon use of AI at present with 89% of airlines currently using or planning to use the technology in this way.
‘Predictive analysis’ is the second use case of AI for 75% of airlines (up from 66% in 2018), while ‘targeted/personalized advertising’ is being used by 64% of airlines (similar to 2018).
Applying AI for ‘automatic scheduling’ use is also on the increase, with 44% of airlines using or planning to use it by 2022 (up from 37% in 2018).
AIRLINES ARE LOOKING AT THE POTENTIAL OF USING AI FOR VIRTUAL AGENTS AND CHATBOTS
Data privacy & security
0%
Business KPI
Storage capabilities
Workforce skills
Service level agreement
Long term strategy
20% 40% 60% 80% 100%
7%
3%
81%19%
60%37%
56%37%
52%48%
50%50%
49%51%
% of airlines ranking capabilities for ‘Data Lake’ strategy in 2019.
Architecture 41%59%
% of airlines with ‘Data Lake’ strategy plans in 2019.
31%
38%
30%
Currently being developed
Implemented
No plans
Implemented
By end of 2022
No plans
‘Data Lake’ strategy plans Capabilities for ‘Data Lake’ strategy
AIRLINE | INNOVATION
ImplementedBy end of 2022
Data privacy & security
0%
Business KPI
Storage capabilities
Workforce skills
Service level agreement
Long term strategy
20% 40% 60% 80% 100%
7%
3%
81%19%
60%37%
56%37%
52%48%
50%50%
49%51%
% of airlines ranking capabilities for ‘Data Lake’ strategy in 2019.
Architecture 41%59%
% of airlines with ‘Data Lake’ strategy plans in 2019.
31%
38%
30%
Currently being developed
Implemented
No plans
Implemented
By end of 2022
No plans
‘Data Lake’ strategy plans Capabilities for ‘Data Lake’ strategy
Data privacy & security
0%
Business KPI
Storage capabilities
Workforce skills
Service level agreement
Long term strategy
20% 40% 60% 80% 100%
7%
3%
81%19%
60%37%
56%37%
52%48%
50%50%
49%51%
% of airlines ranking capabilities for ‘Data Lake’ strategy in 2019.
Architecture 41%59%
% of airlines with ‘Data Lake’ strategy plans in 2019.
31%
38%
30%
Currently being developed
Implemented
No plans
Implemented
By end of 2022
No plans
‘Data Lake’ strategy plans Capabilities for ‘Data Lake’ strategy
No plans
Currently being developedImplementedNo plans
18© SITA 2019 Air Transport IT Insights
AIRLINE | TECHNOLOGIES
AIRLINES ESTABLISH DATA LAKE STRATEGY TO PERFORM ARTIFICIAL INTELLIGENCE
ANALYSIS
AI practices for airlines Overall 69% of airlines have a Data Lakestrategy implemented or currently being developed. Airlines have implemented several capabilities to support it:
• The architecture is the first capability in place for 59% of airlines in 2019.
• Data privacy and security is also an important capability implemented by 51% of airlines.
• Business KPI is the third capability being put into place by the majority of airlines.
All airlines expect to have those three main capabilities in place by 2022.
AIRPORT IT TRENDSIn 2018, airport IT spend reached a new high, with most airports forecasting further increases. The investment priorities of airport CIOs include cybersecurity, cloud services and business intelligence (BI) –technologies which are key enablers of the continued airport digital transformation.
A major trend is the growth of investment in automating the passenger journey, to provide a faster, more pleasant airport experience. Facing the challenge of ever increasing passenger numbers, the vast majority of airports are leveraging BI to improve passenger processing.
Investment in passenger flow management has already delivered increased satisfaction among passengers. As many as 68% of airport CIOs reported a year-on-year improvement of up to 20% in passenger satisfaction levels, while 44% saw an increase in average processing times.
Airports are now turning their attention to further reducing passenger frustration by providing personalized communications over mobile devices, including wait-time alerts as part of a flow management solution.
The trend over the past three years has seen airport mobile apps providing the core services of flight status notices, customer relationship management and airport status information. Looking ahead, the emerging trends will result in more personalized information for passengers, including real-time bag tracking information and artificial intelligence (AI)-driven chatbot services.
High on the agenda is biometric identity management, enabling airports to better utilize existing resources to handle greater passenger flows. This emerging technology is set to gain greater traction with airports of all sizes. Most airports plan to invest in initiatives
to process passengers without them having to present documents at every step of the journey. The next few years will see biometrics move out of small scale experimentation and into the mainstream.
What is clear is that airport and airlineIT spend, technology investment priorities, and process solutions are becoming increasingly similar. As these synergies become more profound, there is potential for collaboration between the two key stakeholders to result in an even more seamless journey for the passenger, along with enhanced operations and business results for all.
19© SITA 2019 Air Transport IT Trends Insights
© SITA 2019 Air Transport IT Insights
AIRPORT IT TRENDSAIR TRANSPORT IT INSIGHTS
PAGES 28-30
SELF-SERVICEINVESTMENT PLANS
PAGES 23-27 PAGES 32-34PAGE 31
MOBILE
PAGES 21-22
IT SPEND TECHNOLOGIES
AIRPORT | IT SPEND
21
10
4.39%
6.06%
3.19%
2.44% 2.87%
2016 (Actual) 2017 (Actual) 2018 (Actual)
8.6
7
1%
2%
3%
4%
6US$BN
2.70%
5.14%
2.45%
1.94%
6%
5%
8US$BN
10US$BN
7%
IT sp
end
in U
S$bn
IT sp
end
as a
% o
f rev
enue
2019 (Planned)
6.26%
3.18%
3.08%
11.8
Estimated value of IT spendTotal IT spendOperating IT spendCapital IT spend
Estimated value of IT spendTotal IT spendOperating IT spendCapital IT spend
AIRPORT | IT SPEND
© SITA 2019 Air Transport IT Insights
AIRPORT IT SPEND CONTINUES TO INCREASE, REACHING A NEW HIGH
ANALYSIS
IT and Telecom spend for airportsIT&T spend as a percentage of revenuecontinues to increase, reaching a new high of 6.06% in 2018 and expected to go up slightly to 6.26%, in 2019.
Last year airports estimated that their 2018 spend would be 5.69% so it is a positive sign to see that the actual growth was higher. 2019’s operating spend is predicted to remain static, whereas capital spend is expected to jump to 3.08%.
The results reveal a total airport IT spend of approximately US$10 billion in absolute spend in 2018.
Investment priorities and programs have broadly remained similar to 2018, with ‘running the business’ continuing to account for just under two thirds of spend.
6%
71%
23%
5%
31%
64%
7%
79%
14% 2018 (Actual) 2019 (Planned) 2020 (Expected)
Expected change in IT spend versus previous year.
Increase
Stay the same
DecreaseIncrease
Stay the same
Decrease
24%
73%
3%
68%
11%
Expected change in IT spend versus previous year.
21%
64%
6%
30%
2017 (Actual) 2018 (Planned) 2019 (Expected)
22
AIRPORT | IT SPEND
© SITA 2019 Air Transport IT Insights
ANALYSIS
Airport IT spend predictionsAbsolute IT&T spend for most airportshas also continued to increase. 64% of airports say that absolute IT&T spend has increased in 2018 and only 5% say it has decreased.
Most airports predict continued growth over the next two years with 79% planning for an increase in 2019 compared to 2018 and 71% expecting an increase in 2020 compared to 2019.
AIRPORT SPEND PREDICTIONS ARE POSITIVE
% of airports planning major programs / R&D by 2022.
Cybersecurity
Common use infrastructure
Cloud services
Self-service processes
86% 85%
95%
Business intelligence
87%88%
AIRPORT | INVESTMENT PRIORITIES
% of airports planning major programs / R&D by 2022.
Cybersecurity
Common use infrastructure
Cloud services
Self-service processes
86% 85%
95%
Business intelligence
87%88%
23© SITA 2019 Air Transport IT Insights
THE TOP AIRPORT INVESTMENT PRIORITIES ARE CYBERSECURITY, CLOUD AND BUSINESS INTELLIGENCES
AIRPORT | INVESTMENT PLANS
ANALYSIS
Airport CIO priorities for IT ServicesAirport priorities for IT investment by2022 are:
• Cybersecurity initiatives, with 95% having plans: 84% of airports have major programs inplace for cybersecurity and a further 11% are running a pilot.
• Cloud services (88%).
• Business intelligence (87%).
These areas of investment are greatly enabling airports’ digital transformation.
Facilitating passenger services remains a high priority for airports as well. Airports have major programs and R&D plans for common use infrastructure by 2022 (86%) and self-service processes (85%).
% of airports with cybersecurity investment priorities in 2019.
Achieve regulatory compliance
Identity and access management
Telecommunications and network security
Threat intelligence
Establish a security framework and program
Cloud security
64%
59%
72%69%
64%
49%
Employee awareness & training 79%
Build/Enhance the SecurityOperations Center (SOC) 45%
10%
5%
10%
2017 2018 2019
15%
8%
12%
% of IT budget spent on cybersecurity.
Cybersecurity spend Cybersecurity investment priorities
24© SITA 2019 Air Transport IT Insights
ANALYSIS
Airport plans for cybersecurityAirport spend on cybersecurity as apercentage of IT budgets has dropped very slightly in 2018 – from 10% to 8%. However it is forecast to grow to 12% in 2019.
CIO initiatives for cybersecurity have increased over the past few years due to industry focus, shared best practices, education, and a benchmarking tool provided by Airport Council International (ACI).
Investing in ‘employee awareness and training’ is a key component when it comes to improving cybersecurity in 2019 – with 79% of airports stating it as an investment priority.
New focus areas for cybersecurity investment priorities in 2019 are ‘telecommunications and network security’ (72%) and ‘threat intelligence’ (69%) ranked respectively second and third.
AIRPORT CYBERSECURITY INITIATIVES HAVE INCREASED OVER THE PAST FEW YEARS
AIRPORT | INVESTMENT PLANS
0%
Baggage processing
Asset management (check-in, parking stand, gates...)
A-CDM - Total Air Management
Aircraft turnaround
20% 40% 60% 80% 100%
22%
24%
30%
30%19%
42%34%
43%35%
% of airports with implemented and planned business intelligence initiatives.
32% 39%
50%
Implemented By end of 2022 No plans
Passenger processing andflow management
Flight operations(flight, arrival, prediction)
17%
20%44%
44%39%
36%
AIRPORT | INVESTMENT PRIORITIES
ImplementedBy end of 2022No Plans
0%
Baggage processing
Asset management (check-in, parking stand, gates...)
A-CDM - Total Air Management
Aircraft turnaround
20% 40% 60% 80% 100%
22%
24%
30%
30%19%
42%34%
43%35%
% of airports with implemented and planned business intelligence initiatives.
32% 39%
50%
Implemented By end of 2022 No plans
Passenger processing andflow management
Flight operations(flight, arrival, prediction)
17%
20%44%
44%39%
36%
25© SITA 2019 Air Transport IT Insights
ANALYSIS
Business Intelligence plansWhen it comes to business intelligence andanalytics initiatives, the area where most airports have implemented or have plans to implement is ‘passenger processing and flow management’ at 83%.
This is followed by ‘flight operations’ (80%) and ‘baggage processing’ (78%).
Business intelligence initiatives focus mainly on improving airport operations including the majority of airports (50%) having business intelligence investment plans for aircraft turnaround by 2022.
AIRPORT | INVESTMENT PLANS
THE LEADING USE OF BUSINESS INTELLIGENCE FOR AIRPORTS IS PASSENGER PROCESSING
% of airports with solutions to reduce passenger wait-time in airport landside by 2022.
Wait-time monitoring(e.g. via sensors/beacons)
Screens displayingreal-time wait-time
information
Wait-timenotifications to
passenger mobiledevices
Mobile electronic capture of
requirements pre-boarding
Wait-timeinformation embedded
in airport app
Passengerprocessing at
off airport locations
HOTEL
01.05
By 2022 46% 36%54% 34%31%
37%2018 17% 10% 11%17%42%
2019 50% 37% 20% 21% 12% 12%
37%
AIRPORT | INVESTMENT PRIORITIESFOR ID MANAGEMENT
% of airports with solutions to reduce passenger wait-time in airport landside by 2022.
Wait-time monitoring(e.g. via sensors/beacons)
Screens displayingreal-time wait-time
information
Wait-timenotifications to
passenger mobiledevices
Mobile electronic capture of
requirements pre-boarding
Wait-timeinformation embedded
in airport app
Passengerprocessing at
off airport locations
HOTEL
01.05
By 2022 46% 36%54% 34%31%
37%2018 17% 10% 11%17%42%
2019 50% 37% 20% 21% 12% 12%
37%
26© SITA 2019 Air Transport IT Insights
ANALYSIS
Passenger flow investment plans‘Wait-time monitoring’ is the one areathat has seen a significant increase in implementation over the last year in order to reduce the amount of time passengers spend waiting at the airport.
The implementation of ‘wait-time monitoring’ has jumped from 31% of airports in 2017 to 42% in 2018. In 2019, the vast majority of airports have ‘wait-time monitoring’ solutions and only 19% have no plans to introduce this measure.
54% of airports are also looking at providing wait-time notifications to passengers’ mobile devices by 2022.
THE MAJORITY OF AIRPORTS NOW HAVE ‘WAIT-TIME MONITORING SOLUTIONS’ FOR PASSENGER FLOW MANAGEMENT
AIRPORT | INVESTMENT PLANS
AIRPORT | INVESTMENT PRIORITIES
Over 20% increase
Up to 20% increase
Same
% of airports with passenger processing performance rate in 2018versus previous year.
% of airports with KPIs measuring passenger processing performance.
73%Passenger satisfaction rate
Average processing speed(pax per hour)
Business performance(ROI, revenue)
68%
40%
Over 20% increase Up to 20% increase Same Up to 20% decrease
Passenger satisfaction
14%
63%
12%
11%
26%
44%
16%
14%
19%
68%
9%
4%
Average processing speed Business perfomance
Passenger processing KPIs Passenger processing performance in 2018
Up to 20% decrease
% of airports with passenger processing performance rate in 2018versus previous year.
% of airports with KPIs measuring passenger processing performance.
73%Passenger satisfaction rate
Average processing speed(pax per hour)
Business performance(ROI, revenue)
68%
40%
Over 20% increase Up to 20% increase Same Up to 20% decrease
Passenger satisfaction
14%
63%
12%
11%
26%
44%
16%
14%
19%
68%
9%
4%
Average processing speed Business perfomance
Passenger processing KPIs Passenger processing performance in 2018
% of airports with passenger processing performance rate in 2018versus previous year.
% of airports with KPIs measuring passenger processing performance.
73%Passenger satisfaction rate
Average processing speed(pax per hour)
Business performance(ROI, revenue)
68%
40%
Over 20% increase Up to 20% increase Same Up to 20% decrease
Passenger satisfaction
14%
63%
12%
11%
26%
44%
16%
14%
19%
68%
9%
4%
Average processing speed Business perfomance
Passenger processing KPIs Passenger processing performance in 2018
27© SITA 2019 Air Transport IT Insights
AIRPORT | INVESTMENT PLANS
ANALYSIS
Passenger flow performanceThe most common KPI used tomeasure the performance of passenger flow management is ‘passenger satisfaction’ according to 73% of the airport respondents. This is followed by ‘average processing speed’ (68%); 40% of airports use ‘business performance’ as the KPI for passenger flow management.
Airports confirm positive performance results from their passenger flow monitoring investment in 2018:
• 74% confirmed a passenger satisfaction increase in 2018 and up to a 20% performance increase (for 63% of airports).
• 44% of airports measuring ‘average processing speed’ said the performance had increased up to 20% and 14% confirmed a performance increase greater than 20%.
AIRPORTS CONFIRM AN IMPROVED PASSENGER SATISFACTION RATE DUE TO PASSENGER FLOW INVESTMENT
% of airports with implemented self-service initiatives.
Check-in via kiosk 91%
Bag-drop (assisted)
Bag-tag at kiosk
Biometric boarding gates
85% 88% 81%
51% 55% 56% 51%
61% 59% 63% 59%
28% 26% 36% 36%
0% 5% 10% 9%
Self-boarding gates 19% 21% 26% 31%
Bag-drop (unassisted)
2016 2017 2018 2019
2018 2021
% of airports implemented self-service initiatives.
Transfer
Check-in
7%88%
Flight transfervia kiosk 30%
21%
Check-in via kiosk Bag-tag printing at kioskBag-tag
24%63%
56%28%
21%30%
Bag-drop (off-site)
Bag-drop
Bag-drop (assisted)
Sales transactions at akiosk (e.g. ground
transport, lounge access)
19%34%
Sales
26%45%
Self-boarding (assisted)
Boarding
Biometric boardinggates (unassisted)
Self-service lost bagregistration (bag recovery)
Baggage tracking
36%10%
BAGSTATUS
Info services at a kiosk(e.g. flight status, gate info, etc.)
Information
29%43%
INFO
36%42%
Bag-drop (unassisted)
10%58%
28© SITA 2019 Air Transport IT Insights
AIRPORT INVESTMENT IN UNASSISTED BAG-DROP IS ON THE RISE
ANALYSIS
Airport self-service investmentAirport self-service investment hasevolved since 2015. Check-in via kiosk has remained stable and is implemented by 81% of airports in 2019.
While the implementation of assisted bag-drop has plateaued over the past three years, the implementation of unassisted bagdrop has doubled to 36% of airports, up from 18% in 2015. The trend towards unassisted is expected to accelerate over the next three years, with 75% of airports globally implementing unassisted bag-drop by 2022.
The next wave of self-service initiatives relates to passenger boarding automation:
• One area of high implementation is ‘automated boarding gates’ with nearly a third of airports already having these in place (31%) and another 40% planning to implement them by the end of 2022.
• Self-boarding gates using biometrics are yet to take off with many trials. Currently only 9% of airports have implemented them, but 44% expect to do so by 2022.
AIRPORT | PASSENGER SERVICES
39%
32% 26%
50%33%
34%
Make-up area Transfer Aircraft loading
33%
28%
Arrival
24%
33%
29%
39%
% of airports with implemented or planned bag tracking touch-points by 2022.
2019
By end of 2022
No plans
By end of 2022
2019
No plans
39%
32% 26%
50%33%
34%
Make-up area Transfer Aircraft loading
33%
28%
Arrival
24%
33%
29%
39%
% of airports with implemented or planned bag tracking touch-points by 2022.
2019
By end of 2022
No plans
29© SITA 2019 Air Transport IT Insights
ANALYSIS
Bag tracking solutionsThere have been no major changes inthe airports’ ability to track baggage across the four main areas: make-up, aircraft loading, transfer and arrivals. Aircraft loading has increased from 37% to 39% implementation – but this is a minor uplift.
Variations based on airport revenue rankings indicate that three quarters of the Top 50 airports have implemented tracking points at make-up and aircraft loading areas, and almost half have tracking capabilities for the transfer and arrival areas.
However, the Top 100+ airports have much lower bag tracking readiness.
AIRPORTS ARE UPPING THEIR INVESTMENT IN BAG TRACKING
AIRPORT | PASSENGER SERVICES
AIRPORT | MOBILE
% of airports with implemented or planned ID management solutions by 2022.
58%59%
Enrolment atthe airport
74%88%Self check-in
70%85%Self bag-drop
75%68%Airport security
67%64%Self boarding
gates atdeparture
48%36%
Automatedself-service
transfer gates
59%61%
Self-boarding gatesusing biometric and
travel documents
52%61%
Self-boarding gatesusing biometric only
48%47%Secure single
biometric token forall touch-points
55%58%Automated arrival
border gates
By end of 2021 By end of 2022
PASSPORT
PASSPORTROME
08.3023D
By end of 2022By end of 2021
% of airports with implemented or planned ID management solutions by 2022.
58%59%
Enrolment atthe airport
74%88%Self check-in
70%85%Self bag-drop
75%68%Airport security
67%64%Self boarding
gates atdeparture
48%36%
Automatedself-service
transfer gates
59%61%
Self-boarding gatesusing biometric and
travel documents
52%61%
Self-boarding gatesusing biometric only
48%47%Secure single
biometric token forall touch-points
55%58%Automated arrival
border gates
By end of 2021 By end of 2022
PASSPORT
PASSPORTROME
08.3023D
30© SITA 2019 Air Transport IT Insights
ANALYSIS
More investment for ID managementAirports are looking at implementingidentity management solutions to facilitate secure passenger journey flow.
The most common is ‘self-check in’ with 88% implementation now and by the end of 2022. The implementation is mature in other airport areas such as self bag-drop (85%) and airport security (75%).
Airports are looking at implementing identity management solutions at self-boarding gates by 2022 with 61% of airports having plans for self-boarding gates using biometrics – with ID documentation.
59% of airports are also planning identity management solutions to access lounges by 2022 which may improve customer loyalty.
AIRPORT | PASSENGER SERVICES
AIRPORTS PLAN MORE SELF-BOARDING GATES TO TACKLE ID MANAGEMENT
% of airports with implemented passenger mobile services.
E-commerce
39%34%Cashless
payment32%
39%40%Retail
promotions32%
44%42%Purchase of
airport services35%
Customer Service
11%15%AI driven
chatbot services9%
25%19%Access to lounge,
transit, or othersecure areas 24%
25%30%Personalized
information servicefor passengers 16%
43%43%Passenger surveys
and focus groups40%
52%51%Customer
relationshipmanagement 33%
2019 2018 2017
Notifications
41%45%Navigation/wayfinding
within the aiport37%
40%46%Notifications about
airport status28%
65%64%Notifications about
flight status54%
BARCELONA
10.10
00123
2019
2018
% of airports with implemented passenger mobile services.
E-commerce
39%34%Cashless
payment32%
39%40%Retail
promotions32%
44%42%Purchase of
airport services35%
Customer Service
11%15%AI driven
chatbot services9%
25%19%Access to lounge,
transit, or othersecure areas 24%
25%30%Personalized
information servicefor passengers 16%
43%43%Passenger surveys
and focus groups40%
52%51%Customer
relationshipmanagement 33%
2019 2018 2017
Notifications
41%45%Navigation/wayfinding
within the aiport37%
40%46%Notifications about
airport status28%
65%64%Notifications about
flight status54%
BARCELONA
10.10
00123
2017
31© SITA 2019 Air Transport IT Insights
AIRPORT | MOBILE
AIRPORT MOBILE SERVICES SEE RISE IN PERSONALIZED SERVICES FOR PASSENGERS
ANALYSIS
Passenger mobile servicesThe provision of services via passengers’mobile devices is key for the digital transformation of airports.
Over the last three years the trend confirms the following two main services have been included in airport mobile apps:
• 64% of airports provide notifications about flight status.
• The majority of airports provide customer relationship management to raise compliments or complaints.
• The next most common feature among airports for their passenger mobile services are notifications about airport status and location-based services.
The survey does not indicate that e-commerce services provided to passengers via mobile apps is a high priority, despite the importance of non-aeronautical revenue for airports.
56% 33% 44%
41%
30%
47%
29%
38%
22%
37%
Business intelligence Biometric IDmanagement
Interactive navigation Artificial intelligence Digital tags
% of airports planning major programs / R&D by 2022.
Major Program
R&D
R&D
Major Program
56% 33% 44%
41%
30%
47%
29%
38%
22%
37%
Business intelligence Biometric IDmanagement
Interactive navigation Artificial intelligence Digital tags
% of airports planning major programs / R&D by 2022.
Major Program
R&D
32© SITA 2019 Air Transport IT Insights
ANALYSIS
Airport CIO priorities for technologies Airports have strong investment plansfor emerging technology, with ‘business intelligence’ being the most important: 89% of airports have investments planned in this area by 2022 and a majority have major programs in place.
There are also big increases across airports of all sizes for biometric, interactive navigation and artificial intelligence technologies:
• 85% of airports are investing in ‘biometric identity management’ solutions with significant growth in the deployment of major programs – rising to 44% from 25% in 2018.
• 77% of airports will have ‘interactive navigation’ investment plans by 2022, the same as the previous year.
• ‘Artificial intelligence’ investment is an important area of focus with the deployment of major programs reaching 29% up from 9% in 2018.
AIRPORT INVESTMENT IN EMERGING TECH: BI AND BIOMETRIC ARE ON THE RISE
AIRPORT | TECHNOLOGIES
% of airports with AI use cases currently implemented or planned by 2022.
48%
Automatic scheduling (e.g. of repairs/maintenance)
73%
Virtual agents and chatbots
27%
Predictive analytics
61%
38%
Targeted advertising/personalization
47%
Brand perception improvement (e.g. social
media/customer feedback analysis)
HI TIM
Pattern recognition
AIRPORT | INNOVATION
% of airports with AI use cases currently implemented or planned by 2022.
48%
Automatic scheduling (e.g. of repairs/maintenance)
73%
Virtual agents and chatbots
27%
Predictive analytics
61%
38%
Targeted advertising/personalization
47%
Brand perception improvement (e.g. social
media/customer feedback analysis)
HI TIM
Pattern recognition
33© SITA 2019 Air Transport IT Insights
ANALYSIS
Use of AI for airportsThere has been further investment inArtificial Intelligence (AI) initiatives over the past year with the main objective of ‘improving the passenger experience’.
The primary areas where it is or will be applied are ‘predictive analytics’, (73%), and ‘virtual agents and chatbots’, (61%). In 2019 we see that almost half of airports (48%) are also looking at applying AI for ‘automatic scheduling’ (e.g. of repairs/maintenance).
AIRPORTS ARE LOOKING AT THE POTENTIAL OF USING AI FOR PREDICTIVE ANALYSIS
AIRPORT | TECHNOLOGIES
Data privacy & security
0%
Business KPI
Storage capabilities
Workforce skills
Service level agreement
Long term strategy
20% 40% 60% 80% 100%
14%
70%22%
60%26%
63%32%
49%44%
48%45%
41%50%
% of airports ranking capabilities for ‘Data Lake’ strategy in 2019.
Architecture
39%54%
% of airports with ‘Data Lake’ strategy plans in 2019.
41%
43%
16% 7%
7%
7%
5%
9%
8%
No plans Implemented Currently being developedImplemented By end of 2022 No plans
‘Data Lake’ strategy plans Capabilities for ‘Data Lake’ strategy
AIRPORT | INNOVATION
No plansBy end of 2022Implemented
No plansImplementedCurrently being developed
34© SITA 2019 Air Transport IT Insights
ANALYSIS
AI practices for airportsOverall 59% of airports have aData Lake strategy implemented or currently being developed.
Among those that do have a strategy, the main capabilities currently implemented are - ‘storage’ at 54%, ‘business KPI’ at 50% and ‘data privacy & security’ at 45%.
AIRPORTS ESTABLISH DATA LAKE STRATEGY TO PERFORM ARTIFICIAL INTELLIGENCE
AIRPORT | TECHNOLOGIES
METHODOLOGY
SURVEYSITA’s Airline IT Trends Survey is well established as the global benchmarking survey for the airline industry.
The survey was first produced in 1999, andwas designed to offer all air transport industry stakeholders the latest facts, figures and trends related to technology adoption and spending. Comparisons to previous surveys are made where appropriate, although the respondent sample may vary between years.
During Q2 this year, questionnaires were sent to senior IT executives in each of the top 200 passenger carriers, including low cost operators, together with carriers representing important players in the regional and leisure sectors.
The survey represents the views and insights of carriers representing 30% of global passenger traffic, providing a clear insight into IT strategic thinking and developments for the industry.
WEIGHTINGA weighting system is applied, based on annual passenger traffic statistics, to ensure that the results are a representative sample in relation to global passenger traffic and to compensate for annual fluctuations in the respondent group. This year, we have implemented a slightly altered version of the weighting for the non-IT-spend elements of the survey which better accounts for airline size.
Direct comparisons from previous years’ data should therefore be treated with caution, although we have included references to re-weighted 2017 data in this report, which is comparable. Questions regarding IT spend remain weighted in the same way as previous years and therefore can be compared directly.
RESEARCHIndependent market research agency Savanta was commissioned to undertake the research on behalf of SITA. The research was conducted in strict confidentiality and the results are presented in an aggregated form. All source data remains confidential and the results of individual returns are not disclosed to the research stakeholders.
SURVEYThe 16th annual Airport IT Trends Survey continues to be the most extensive study of IT trends within the global airport industry. The study took place during May and June of 2019 and focused on senior IT executives at the world’s airports.
This year’s survey results came from 101 respondents who collectively represent the views of 264 airports. The airports participating in this year’s research represent 36% of global traffic (source: 2018 Airports Council International passenger traffic data) or 3.26 billion passengers.
WEIGHTINGA weighting system is applied, based on ACI annual passenger traffic statistics, to ensure that the results are a representative sample in relation to global passenger traffic and to compensate for annual fluctuations in the respondent group. This year, we have implemented a slightly altered version of the weighting for the survey which better accounts for airport size. Direct comparisons with previous years’ data should therefore be treated with caution, although we have included references to re-weighted 2016 and 2017 data in this report, which are comparable.
RESEARCHIndependent market research agency Savanta was commissioned to undertake the research on behalf of ACI and SITA. The research was conducted in strict confidentiality and the results are presented in an aggregated form. All source data remains confidential and the results of individual returns are not disclosed to the research stakeholders.
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SITA AT A GLANCE
Easy air travel every step of the way.
• Through information and communications technology, we help to make the end-to-end journey easier for passengers – from pre-travel, check-in and baggage processing, to boarding, border control and in-flight connectivity.
• We work with about 400 air transport industry members and 2,800 customers in over 200 countries and territories. Almost every airline and airport in the world does business with SITA.
• Our customers include airlines, airports, GDSs and governments.
• Created and owned 100% by the industry, SITA is the community’s dedicated partner for IT and communications, uniquely able to respond to community needs and issues.
• We innovate and develop collaboratively with our air transport customers, industry bodies and partners. Our portfolio and strategic direction are driven by the community, through the SITA Board and Council, comprising air transport industry members the world over.
• We provide services over the world’s most extensive communications network. It’s the vital asset that keeps the global air transport industry connected.
• With a customer service team of over 2,000 people around the world, we invest significantly in achieving best-inclass customer service, providing 24/7 integrated local and global support for our services.
• Our annual Air Transport and Passenger IT Insights for airlines, airports and passengers are industry-renowned, as is our Baggage IT Insights.
• In 2018, we had consolidated revenues of US$1.7 billion.
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