How airlines transform costly flights disruption management to win loyalty
Switchfly estimates the cost of IROP to airlines as at least $8.3 billion and the cost to passengers in lost time at $16.7 billion.
Travel commerce platform Switchfly becomes the latest travel technology company offering to help airlines solve costly Irregular Operations (IROP) incidents by making passenger re-accommodation faster and easier.
In a new Travel Disruptions: Airline IROP Management report, Switchfly estimates the cost of IROP to airlines as at least $8.3 billion and the cost to passengers in lost time at $16.7 billion.
The company states in its report:
“On average, an airline’s cost of rebooking all passengers from a cancelled flight in the US, including transportation costs, has been estimated at $250 per passenger and $4,000 per crew.
“For international routes, the cost of re-accommodating passengers on a single fight can reach tens of thousands of dollars.
“Rather than focus on complex operational challenges, airlines can focus on passengers and transforming IROP from an expensive liability into an opportunity to satisfy customers and earn their loyalty.”
To accomplish this, the company suggests immediately communicating with affected passengers to provide information that might reduce stress; re-accommodating passengers through mobile systems, including by letting them select nearby hotels on mobile apps; tailor re-accommodation options available to loyalty customers based on status; offer ancillaries which may improve customer satisfaction, like up-selling hotels; and keep passengers informed on mobile at all times.
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