Air cargo is a highly volatile business. External factors such as trade policy, consumer sentiment, global events like economic recessions, spreading of communicable diseases, and socio-political situations have an immediate impact on air cargo.
As the COVID-19 crisis continues, airline loyalty programs have become a survival lifeline for airlines. Airlines can harness the power of loyalty programs to generate non-travel related revenue and retain cash by maintaining meaningful engagement through non-air activities and demonstrating compassion for their customers' circumstances.
The air freight business has always been challenged by the very operating model of the business. A significant share of global air cargo is ferried in the available belly space of passenger aircraft. Large scale commoditization of the offering has led to diminishing yields – even while costs continue to rise. There is a significant opportunity for cargo carriers and GHAs to derive higher returns from their cargo product by focussing on differentiated offerings and an elevated customer service that goes along with it. “Special Cargo” is the smart way to productize the air cargo service such that it is tailored to meet specific needs of specific markets.
The impact of the COVID-19 crisis will resonate for years with varying levels of impact on hospitality brands, depending on several factors—chain scale, location, and demand profiles, to name a few. Despite existing challenges, new opportunities are arising that, with the right technologies, hospitality companies can seize upon and solidify for greater long-term value. Consequently, the hospitality companies that succeed in the near-term will be those that become agile, respond to new consumer behavior, and embrace centralized digital solutions that transform both operations and consumer engagement to those ends.
As airlines strive to be more responsive to changes in demand, reliance and focus on digital and data-driven strategies, especially in the areas of distribution, retailing, and pricing, will allow them to create expanded, personalized ancillary offers to renew their revenue streams and re-establish customer confidence.
The energy industry has weathered many storms and will come back stronger and more agile post-COVID-19. Now, more than ever, technology solutions can enable Energy & resources companies to be bold, think differently, and innovate, resulting in improved productivity and efficiency of logistics operations.