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Airline industry could create additional $40B a year via retailing

12/10/2019| 6:35:11 PM|

Large airlines will become travel platforms catering for more elements of the customer journey with McKinsey estimating a $15 billion investment and $39 billion in value.

The airline industry could create up to $40 billion in additional revenue annually by 2030, according to a new report.

The rosy future is painted by a McKinsey study which bases retailing principles around New Distribution Capability, One Order and dynamic offers.

Various scenarios are laid out by which large airlines would make one-off investments in technology and reap varying levels of value through increased spend from consumers.

These include:

Global distribution companies become aggregators of NDC and airlines gain income from producing offers with more ancillaries. The scenario suggests a $3 billion investment by the industry and $15 billion in value.

Large airlines become travel platforms catering for more elements of the customer journey with McKinsey estimating a $15 billion investment and $39 billion in value.

Online intermediaries get bigger through consolidation and much better in terms of the consumer experience and distribute enhanced airline offers. This scenario estimates a $12 billion investment for $22 billion in value.

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TAGS: retailing | NDC | ancillary offer
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