SKIFT MAGAZINE:

Airlines Personalize the Passenger Experience with New Apps and Devices
Justin Bachman, Bloomberg - Nov 16, 2017 10:00 am

Like any technology, access to flyers’ personal data can be used for good or evil. Airlines need to strike
the right balance between personalization and intrusion so enhanced access to flyers’ whims doesn’t get
too creepy.
— Dennis Schaal

Airlines are really good at some things—like people movement, aircraft maintenance, and
keeping passengers safe. They’re also experts at collecting vast mountains of customer data,
including what sorts of credit cards and computers you use, how often you fly, and where and
how much you spend on all the extras.

If you’re stressing over a tight connection, flight attendants can usually tell you which gate to run
toward, how much time you have, and whether your next flight is on time. But they may also
know if you were stuck in Buffalo for six hours last week because of a delay, and offer a
personal apology. They can even tap their data hoard to make sure there’s plenty of red for the 2
million-miler who drinks only cabernet, or upgrade the woman on standby who got stuck in
economy because she usually flies first class.

The swankiest hotels have long employed this strategy: If you feel special and loved, maybe
you’ll come back. Now the airlines have jumped on the bandwagon.

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The industry has long envisioned a day when it could make use of all the information it’s
accumulated on you. That data has traditionally been segregated in various IT systems, but now
many airlines are gradually funneling it into a customer service strategy—with flight attendants
becoming the face of hyper-personalized service.

“We have enough data about who you are, where you fly, and more importantly, over the last
period of time when we’ve delayed you, canceled you, made you change your seat, spilled coffee
on you—we have the points of failure and the points of success,” Oscar Munoz, chief executive
of United Continental Holdings Inc., said Nov. 9 at a conference sponsored by the New York
Times. “I think our customers need better service and better personalization today. And that’s
what we’re focusing on.”

“If they know my birthday, what else do they know about me?”

But as they probe these new capabilities, some carriers are confronting a nettlesome question:
How much personal data can be used to enhance customer service before slipping into the “too
much information” realm, where a traveler may feel uncomfortable?

In April, Delta Air Lines Inc.’s 23,000 flight attendants began using new software called SkyPro
on their Nokia Lumia mobile devices to keep tabs on some basic customer information. You’ll
get an apology if your flight last week was delayed, for example. Or a thank you if you just hit
200,000 miles for the year. Or, say, a flight attendant spills some coffee on your skirt: The tools
will allow him to award you some frequent flier miles or a future travel voucher on the spot.

On the Nokia devices, each seat of a flight is color-coded. A green thumbs-up for passengers
Delta wants to thank or congratulate, a red check if the airline wants to apologize for a recent
service mishap.

American Airlines Group Inc., the world’s largest carrier, equips its 24,000 flight attendants with
Samsung Galaxy Note devices. Early next year, American will release a new app called iSolve to
let flight attendants dispense frequent-flier miles or a travel voucher to help resolve customer
service issues onboard. United’s flight attendants also track tight connections, mileage
milestones and other customer matters with company-issued iPhones.

“We want to stay one step ahead of them, if you will, by using our big data when things go
wrong or when things are going great,” said Allison Ausband, Delta’s senior vice president of in-
flight service.

Like other carriers debating how to employ “big data” through new digital tools, Delta is
exploring where the creepy factor lies in all this customer insight. For example, should a flight
attendant wish you a happy birthday? What about appearing with a bloody mary because you
ordered the drink on nine of your last 10 flights? What if you’re sitting beside your boss this
time? And should flight attendants’ notes on high-value customers be updated and distributed
companywide?

Right now, they’re not, but what has begun as making use of information they had anyway could
soon become a targeted accumulation of data on your travel persona.

Do we want to feel like we’re under the microscope every time we fly? Will we order that
second drink? Even watch a racy movie? Entertainment isn’t being tracked as of yet, but creating
a big brother environment may not make for happy customers, which after all, is the point of the
exercise.

“It’s a feel-good thing, but it’s also in the mind of the consumer, ‘If they know my birthday,
what else do they know about me?’” said John Romantic, American’s managing director of flight
service.

On Delta flights, there are no happy birthdays or unbidden cocktails—yet. The carrier is
“gradually increasing the number of data elements the customer is comfortable with us
interacting on,” Ausband said. The larger, more immediate goal is “to make sure they know that
they do matter to us, whether they’re in 32B or sitting in 1A.”

Mallory Brown, a 10-year Delta flight attendant, said customers have responded well to the
apologies and thank yous she’s delivered. “They were impressed by it,” said Brown, who also
helps develop the carrier’s on-board service curriculum. “It went so well that the surrounding
passengers started talking about it.”

Atlanta-based Delta considers its knowledge of customers’ preferences a “strategic advantage,”

Ausband said. The airline is also trying to increase its number of daily “recognition events,”
which vary based on flight duration and whether a route is more of a business or leisure market.

“Throughout the cabin there are pockets of next-generation business travelers who are going to
be high spenders”

Delta is hardly alone when it comes to using its customer intelligence, with every big
international airline exploring how to tailor its approach more specifically.

Flight attendants at British Airways, part of the International Consolidated Airlines Group SA,
have used iPads since 2011. The airline developed more than 40 apps for various customer
service aspects of a journey, including those that allow cabin staff to recognize “high-tier
customers,” spokeswoman Caroline Titmuss said.

Via the iPads, a flight attendant can also note troubles—such as whether a specific meal order
wasn’t delivered—so that the airline will offer an additional apology after the flight.

Two years ago, Singapore Airlines Ltd. cabin crews began using tablets to customize their
service and to create digital “voyage reports” after each flight.
In this service landscape, many airlines will also grapple with how widely to distribute this kind
of digital interaction. Is it wiser to focus on the “high-value” customers in premium cabins or
attempt to include the entire airplane? Flight attendant time, after all, is a very finite resource.

“We don’t think it’s either-or,” said Dave O’Flanagan, chief executive of Dublin-based Boxever
Ltd., which sells customer service software and services for the travel industry. “That’s the way
people have thought about the two previously. We’re pretty passionate about loyalty for
everybody.”

While business and first class make up the bulk of full-service airline profits, and not
coincidentally accrue the most bespoke services, O’Flanagan contends that “throughout the cabin
there are pockets of next-generation business travelers who are going to be high spenders.”

One Asia airline that employs Boxever even plans to offer immediate upgrades if your luggage
gets mislaid, O’Flanagan said, owing to the rapid evolution of bag-tracking technologies. As
carriers develop greater proficiency in coordinating customer data, expect to see more personal
apologies—and free drinks or bonus miles—awarded on board. You might even get a happy
birthday wish—without mentioning your age, of course.

“To the customer it says, ‘I matter,’” Ausband said. “‘I am sitting on this airplane with 200
people, but I matter.’”

©2017 Bloomberg L.P.

This article was written by Justin Bachman from Bloomberg and was legally licensed through
the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

Why Marketers Need to Focus on the ‘Big

Picture’ of Traveler Engagement
Oath + Skift
 
- Jan 17, 2018 12:38 pm

Traveler purchase decisions are influenced long before the first click, but for many marketers,
this is still the primary focus. To succeed in 2018, marketers need to shift their agendas to
engage with travelers on a human level throughout the entire journey.
— Oath

The traveler path to purchase has never been a simple one, but as most travel marketers know, it’s
becoming even more complex as newer channels such as mobile, social media, video, and online
reviews play bigger roles in the discovery process. While these channels require new ways of
thinking about marketing strategies, they also provide new opportunities for traveler engagement and
authentic customer connections.
SkiftX spoke with Alia Lamborghini, Industry Lead – Travel and Disruption at Oath about why
travel marketers should move beyond the bottom of the funnel to focus on the larger picture of
traveler brand engagement, why the human element of travel marketing matters now more than ever,
and why the importance of content and mobile cannot be overstated.
SkiftX: Travel brands talk about getting the right message to the right customer at the right
time on the right device. Do you think we’re there yet?
Alia Lamborghini: There is still a gap between consumer behavior and how brands are advertising.
Today, consumer-centric means mobile-first. According to eMarketer, 80 percent of people globally
will use a mobile phone by 2020.
When it comes to cross-device strategy, consumers expect more than a mobile app or site — they
expect an experience that is seamless, immediate, and personal. In mobile and beyond, brands must
approach each user touchpoint as a human moment. It’s not just data, machines and algorithms. It’s
also about passions, connections, conveniences, identity, and community. In-depth audience insights
that reveal such nuances are essential in helping marketers meet their consumers with the right
message each step of the way.
SkiftX: How does the travel industry approach campaign planning? Is it still brand-centric?
Lamborghini: Many travel marketers are still catching up when it comes to mobile and non-
traditional performance marketing attribution. The travel industry has traditionally invested heavily
in bottom of the funnel, user acquisition performance marketing — but last-click attribution doesn’t
tell the full story. Content marketing and mobile strategy are important branding tools that are still
not getting enough share of the marketing dollars.
Attention is an important currency that should be measured by dwell time and engagement — not
just the quick drive-by of a like, follow or click. For example, we know the discovery and
consideration processes begin long before the first click, on different devices through different
channels. Compelling content from a myriad of sources — social media, third-party content creators,
influencers, online reviews — play a huge role in inspiring and shaping consumer choices leading up
to brand selection or booking.
SkiftX: We’re hearing more and more about how brands can create mobile moments to engage
customers. How should travel marketers approach this?
Lamborghini: People spend over five hours a day on mobile devices, so mobile must be a priority.
Premium mobile content, trusted mobile data, and ad tech built specifically for mobile are table
stakes in 2018 mobile planning.
Beyond function and utility, relevant mobile moments will turn users into members. Brands become
market leaders when they reinvent consumer touchpoints and create new ways to add value on-the-
go. Data-targeted email coupons or real-time app notifications are ways in which mobile moments
can surprise and delight. Innovative mobile ad formats also create a huge impact. Immersive ads, for
example, can transport consumers to a virtual vacation through interactive 360 views of the beach or
a selection of tropical drinks through augmented reality components. Ultimately, the mobile
experience must be easy to navigate, personalized, and convenient.
SkiftX: How can travel marketers use data to gather a 360-degree view of their customer and
successfully measure results from their campaigns?
Lamborghini: Consumers have high expectations from their brands. They want to be understood as
a person and spoken to as a valued customer. They also want their brands to speak up for what they
believe in, oppose what they don’t, and use their data for good without taking advantage. There is no
“one size fits all” in marketing, but deep audience insights uncovered through data based on verified
interests, behaviors, locations, and purchases should drive brand strategy to deliver better, tailored
messaging that provides real value to the consumer.
SkiftX: When it comes to creating content, what should travel marketers think about first?
Lamborghini: There is nothing more powerful than storytelling to elicit emotion, empathy, interest,
and action. Storytelling facilitates human connection and shared value systems. As the race to create
quality content mounts across industries, brands have the unprecedented opportunity to become some
of the best storytellers out there and use that power to drive consumer dialogue.
A successful content strategy should match brands with relevant publisher voices and audiences, and
craft custom content with a fresh perspective on the human experience. Content created in various
formats (editorial, 360-degree video) and distributed across multiple platforms (mobile, social, web,
experiential events) engages audiences and builds trust amongst customers.
The pressure for brands to define their values is increasing too. Millennials are twice as likely as
baby boomers to expect brands to take a stance on social issues and are overall more drawn to brands
they consider trendsetters. Reacting in real time to cultural moments and delivering up-to-speed,
relevant content is one way brands can create that authentic voice in market.
SkiftX: What are some trends travel marketers should be thinking about for 2018?
Lamborghini: Internet of Things (IoT), addressable TV and live streaming are three trends that will
continue to impact content consumption and push marketers to adopt mobile and data-first agendas.
IoT-connected hotel rooms, travel experiences and virtual assistants will be big in 2018. We’re
already seeing industry pioneers like Marriott and Carnival lead the way with the adoption of
artificial intelligence and OTA data plug-ins and we’ll continue to see more of this.
As an industry, we’re changing the narrative around how travel services and products are sold. Brand
marketers are highlighting the value of the experience above material accommodations. This shift
reflects cultural sentiment as a whole, as we move away from collecting “things” and place greater
value on autonomy and authenticity of character. Consumers are presenting their own “personal
brand” on social media through photos and content, and in this world, unique experiences are the
greatest currency.
This content was created collaboratively by Oath and Skift’s branded content studio,SkiftX.
Tags: digital, marketing strategy, Oath, social media

Travel Search Engine Wego Labored in

Asia but Found Its Footing in the Gulf
States
Sean O'Neill, Skift
 
- Jan 22, 2018 12:30 am
Despite its name, Wego never went far.
Founded in 2005 as Bezurk, Wego was similar in design to many travel price-comparison
search companies launched around the same time.
Yet the Singapore-based company didn’t grab an exit like Kayak, which the Priceline Group
bought for $1.8 billion in 2013; or like Skyscanner, which Ctrip acquired for $1.74 billion in
2016; or even like Momondo, which Priceline bought for $550 million a year ago.
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          SUBMIT
Wego competed with HotelsCombined to get traction in Southeast Asia but never struck
gold.
“We were way too early with the metasearch model in southeast Asia,” said co-founder and
CEO Ross Veitch. “You need a critical mass of suppliers operating at scale to make the
marketplace model work. We thought the market would develop faster than it did.”
Veitch thinks Wego now has a path to scaling up after he and founder Craig Hewett pivoted
the company to a mobile-first strategy in the Gulf States — a market relatively underserved
by the global giants.
Booking.com and TripAdvisor are the only companies ahead of Wego in traffic in the region,
according to figures for desktop and mobile for December 2017 from analytics firm
SimilarWeb.
But Veitch said, “We believe Wego sends a lot more referrals to flight and hotel partners
from the Middle East than TripAdvisor does.”
Between half and two-thirds of Wego’s revenue comes from the Middle East and North
Africa, the rest from Asia Pacific, the company said.
“With the benefit of hindsight, when starting in Asia, we should’ve built cash cows in the
more developed markets first,” said Veitch.
“Effectively, that’s what we’re doing in the Middle East,” he said. “This nicely profitable
market is throwing off cash we can use to subsidize the marketing, engineering, and
supplier relationship expenditure in emerging markets.”

MIDDLE EAST PIVOT

In December 2010, Wego launched 34 country sites beyond the handful in Southeast Asia
— to see where it might gain traction.
It received the best response in the Gulf States.
The region had been mostly overlooked by Western and Chinese travel giants.
At the time, it only had five or so homegrown online travel agencies — none of which was
dominant.
Wego added regional supply and marketing.
In April 2012, it launched the first Arabic language flights and hotels comparison search
service, it claimed. Arabic, Farsi, Hebrew languages are all read right-to-left and the user
interface conventions are flipped accordingly — something of a headache for Western-
trained frontend Web and app developers.
Volumes remained modest but the transaction sizes were notably much higher than the
averages Wego had seen in Southeast Asia. One out of every three Saudi shoppers on
Wego picked four-star and five-star accommodation for trips involving four or more
travelers.
In early 2013, Wego opened a Dubai office, making it a dual headquarters along with its
original one in Singapore.
In June it announced a Series B investment round. Tiger Global was the largest investor,
Crescent Point the second, and Square Peg the third — though none took a controlling
stake.
Today, Wego claims to be the most-visited travel comparison service in the Middle East and
North Africa region, with more than 10 million monthly visits.
Veitch estimated the region’s travel spending, offline and online, to be the equivalent of
either the United Kingdom’s or Germany’s.
Skeptics might say the middle- and upper-classes in the Gulf States are smaller than that.
Since the oil price slide, the growth of the middle class in the region seems to have fizzled
out.
Another difficulty might be that none of Wego’s key countries are yet providing enough profit
to fund expansion at a pace that can head off competition from larger players, according
to the global analysis in Skift Research’s 2017 Outlook on Metasearch in Travel.
Veitch is bullish, though. Neither Skyscanner nor Kayak are significant players in the Gulf.
“The Middle East market is big enough to support a couple of billion-dollar online travel
players,” Veitch said, “Wego will be one of them and probably the first.”
He added that the region broadly lacks rate parity contracts between many hotels and
online travel agencies, unlike in North America.
That makes comparison search more valuable to consumers because there is typically
more variation in the rates on offer among different websites.
Low-cost carriers like FlyDubai, FlyNas, and AirArabia are triggering fare wares, and this
also makes metasearch more useful, he said.
Travel price competition is heating up. There are about 40 regionally based online travel
agencies in the Middle East — a fast increase from the roughly five only several years ago.
Veitch declined to comment on the online travel scene.
A look at SimilarWeb found that the biggest online travel contenders are Almosafer/Tajawal,
CityBookers, Flyin, Rehlat, Tajawal, and Yamsafer.
Travelstart, based in South Africa, has a significant regional presence, as does Cleartrip,
based in India.

FRESH FUNDING

Up until last summer, Wego had raised $45 million.

In September 2017, Wego received an equity investment that included participation by
Middle East Venture Partners, which describes itself as the largest venture capital firm in
the region and has Mohamed Alabbar as a billionaire stakeholder.
“It was a C round in terms of preference but our fifth funding round in sequence,” said
Veitch.
MBC Group, which owns Dubai-based satellite channel MBC, led the round as part of a
strategic partnership.
In November, MBC’s TV, radio, and digital channels began to promote Wego.
Veitch said there’s a potentially interesting parallel in how MBC Group used its media
assets to build and promote Anghami, a music-streaming service that has more than 36
million users in the Middle East.
Wego said it has now raised $60 million in total funding to date.

MOBILE-FIRST MARKET

The Middle East stands out from most other regions in its pace of mobile adoption.
Smartphone usage in several Arab states in the Gulf, particularly in the United Arab
Emirates and Saudi Arabia, is among the highest in the world.
In March 2014, Wego launched the world’s first Arabic language travel metasearch mobile
apps.
Today, Wego says more than 85 percent of its search volume from the Middle East is on
mobile.
More importantly, the company has become better at persuading consumers to book on
mobile.
Today, Wego said its click-throughs from its mobile apps and mobile Web to suppliers is at
nearly the same rate as the brand’s desktop website.

HELP FROM GOOGLE TECH

Wego got a bump in usage when it adopted a combination of standards Google has
championed for optimizing webpages for mobile usage. Its team worked very early on with
the Google on the technology.
In early 2017, it rebuilt its mobile website from the ground up with Accelerated Mobile
Pages, which reduces page load time, and Progressive Web App technology, which
provides a mobile Web experience that is indistinguishable from a native Android app.
In other words, Wego redesigned its mobile site to mimic its travel app using new
technology standards.
In the first three months of 2017, the changes led to a 50 percent jump in the number of
customers in Kuwait and Saudi Arabia that Wego successfully handed off to suppliers,
particularly for flight bookings, the company said.
Until a year ago, many travel and e-commerce websites still relied heavily on single-page
methods, which use large volumes of code and can result in slow-to-appear content,
according to Alex Painter, senior web performance consultant at NCC Group.

SPEED WINS

At the 2017 Google I/O developer conference, Wego presented its work.

Wego claimed it decreased page load time from around 12 seconds to between 0.50 and
three seconds, as explained in a video made for the conference. It said it supports around
500,000 sessions a day in its peak season.
Wego claimed to be the world’s fastest travel mobile site.
The Google developers accepted Wego’s claim to be the fastest. But it’s hard to imagine
that Google’s own travel metasearch wasn’t faster.
Wego’s advantage was short-lived. Others copied the move.
In our unscientific tests last week, Wego’s site did load fast, but not faster than Google’s
metasearch results. Several online travel rivals were as fast, too, having adopted the new
standards.
But Wego did provide more regionally relevant results on average for a few sample Asian
and Middle East itineraries.
A positive side to the new standards being championed by Google is that they provide a
high-quality mobile Web experience for parts of the world where users are reluctant to load
travel apps because of infrequent usage and constraints on the memory size of their
devices.
A downside to promoting mobile Web over apps is that consumers who don’t use apps
often turn to Google search to discover travel brands and that can often be more expensive
for travel advertisers.
Wego said 55 percent of its overall Middle East traffic came from its mobile apps, which
have also been rebuilt for greater speed, while 30 percent of that traffic came from mobile
Web, and the rest from desktop users.
The company has a roughly even split in usage by Apple and Android device users. Wego
officials wouldn’t say how many times consumers have installed its apps other than that it
was an “8-digit figure.”
As it grows, Wego needs to retain its top talent. It lost chief operating officer Graham Hills to
tours and activities tech company BeMyGuest. It lost Honey Mittal, a chief product officer
who led the mobile revamp, to a non-travel company.
Veitch said the departures were coincidental. “Wego has a pretty deep management bench,
and the developers who led the charge on the mobile changes are still driving the
innovation agenda at Wego,” he said.

MORE FUNDING NEEDED?

Based on certain referral and transaction data Wego provided, we estimate that Wego’s
revenue last year was likely less last year than the $60 million it has raised to date.
For online travel to expand in the region, more venture capital investment is likely required.
This year, Wego’s 110 employees will have to keep looking over their shoulders.
As soon as one of the global online travel companies decides the Middle East market is
worth investing in, competition may appear fast and strong.
Being on the ground and understanding the local market gives Wego an edge, Veitch
countered.
Payments is one area. Many users don’t have a credit card or do not want to use it online.
So Wego asks users up-front what type of payment they are willing to use and then only
shows prices inclusive of the payment fees for each, filtering out everything else.
Local touches like that can build barriers to entry for outsiders — for awhile, at least.
Wego needs to take the lessons learned from its stumbles in Asia to solidify its head start in
the Middle East and North Africa.
“We’ll have to stay heads down, building the brand, for the next few years,” Veitch said.
Tags: metasearch, middle east, wego

Transport, Airlines

The Airport Lounge Conundrum —

Airline Innovation Report
Brian Sumers, Skift
 
- Jan 18, 2018 12:05 am
Airline lounges are rarely as opulent as the promotional pictures suggest. Yet
passengers seem to love them. Why? Will they persist forever?
— Brian Sumers

The Skift Airline Innovation Reportis our weekly newsletter focused on the business of
airline innovation. We will look closely at the technological, financial, and design trends at
airlines and airports that are driving the next-generation aviation industry.
We also provide insights on developments in passenger experience, ancillary services,
revenue management, loyalty, technology, marketing, airport innovation, the competitive
landscape, startups, and changing passenger behavior. I write and curate the newsletter,
and we send it on Wednesdays. You can find previous issues of the newsletter here.
As airlines in Europe and the United States cut seat pitch, in-seat television screens and
free food on short-haul flights — sometimes even in business class — executives often
defend themselves by saying passengers may want more perks but few will pay for them.
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          SUBMIT
But even as cuts continue, many carriers refuse to end lounge access. At these not-so-
exclusive clubs, passengers often eat cheese cubes and crackers, sip cheap wine and fight
for seating. Yes, most airlines have some nice clubs, usually at hubs, often reserved for
long-haul business and first class travelers, but many more lounges are dreary, and
uninviting.
Yet it’s remarkable how much passengers want to visit rooms with worn furniture, forlorn
buffets, and coffee tables filled with empty plates and cups. In the United States, travelers
often pay for memberships, mostly for at least $500 per year, while in Europe and
elsewhere, mid-level elite frequent flyers and business class passengers get in free. Some
banks also grant lounge memberships as part of a credit card’s annual fee.
Airline executives might prefer it otherwise. Some airlines probably can make lounges
money-makers by selling a lot of memberships, opening clubs to passengers from other
airlines, using these facilities to entice more travelers to apply for airline-branded credit
cards, or joining Priority Pass, a network of more than 1,000 lounges worldwide. Priority
Pass pays an airline each time a member enters.
But in the aggregate, it seems unlikely clubs are major revenue producers, since carriers
not only must operate their lounges, but also must pay others to accept their passengers
where they do not have one.
Still, British Airways has not touched the perk even though it has been on a cost-cutting
binge, with short-haul business class passengers sitting in seats with 30-inch pitch, same as
Ryanair in coach. British Airways even charges many short-haul business class passengers
to choose a seat in advance, and prices start at about 20 pounds ($27.50).
But buy a British Airways Club Europe ticket from London to nearly anywhere in Europe,
and you’ll visit a departure lounge for free. You’ll also get access if you’re a mid-level elite
frequent flyer on British Airways, or one of its partners, including American Airlines. This is
not an insignificant expense for British Airways, or its partners.
A few carriers seek to reduce lounge expenses. SAS recently cut lounge access at some
airports, mostly in secondary European cities, because it no longer wanted to pay third-
party operators to accept its customers. In the United States, JetBlue Airways does not
have lounges, even for travelers flying in its Mint business class. It is a competitor for
American, United Airlines and Delta Air Lines, all of which offer club access for flights from
New York to Los Angeles and San Francisco.
If they could get away with it, more airlines probably would cut lounge access, at least to
some passengers, or at some airports. But passengers seem to demand it, and airlines may
fear customers would defect to another airline or alliance if the perk disappeared.
What do you think it is about lounges? Why are they one of the few perks airlines seem
reluctant to take away? And why do customers like these clubs so much?
Send me your thoughts via email [bss@skift.com] or find me on Twitter. I’m @briansumers.
— Brian Sumers, Airline Business Reporter
STORIES OF THE WEEK

Delta Finds Passengers Paying for Upgrades With Their Own Money Is Big
Business:Delta has been upfront about why it upgrades fewer domestic passengers to first
class. “Any business where you give the majority of your best product away for free doesn’t
work,” Delta CEO Ed Bastian told me in September. Many passengers who once expected
upgrades were business travelers flying on an expense account. But when Delta took away
some of their upgrades, something unusual happened — customers started buying up with
their own money.
Virgin America Is No Longer an Airline in the Government’s Eyes: Virgin America
loyalists, especially in San Francisco and Los Angeles, loved the upstart airline, but it never
really caught on elsewhere. It lacked the size and scope to compete with major network
carriers. Last week, Virgin America lost its operating certificate, and its flights now operate
under Alaska’s. Officially, that means Virgin America isn’t an airline anymore. By April, when
Alaska merges the two reservations systems, Virgin America will be just about gone.
New York JFK Is Getting a Centurion Lounge From American Express: An AMEX
executive told me these clubs are the top travel-related perk for Platinum and Centurion
cardholders. And it’s almost certain the lounges help American Express attract and retain
cardholders in New York and elsewhere. But this is a massive investment. How much do
you think it costs to rent and configure 15,000 square feet in JFK Terminal 4?
U.S. Airlines Cancelled Fewer Flights Than Usual in November: This is not a fluke.
Many U.S. airlines are emphasizing completion factor, and that is paying dividends. As with
many operational metrics, Delta is far in the lead. But United’s improving, too.
Airbus Casts Doubt on the Future Production of the World’s Largest Jet: For a couple
of decades, airlines didn’t seem to know how to best use the Boeing 757. Its engines had
too much power for the routes the jets flew, causing the 757 to burn more fuel than similarly
sized planes. But then Boeing stopped producing the jet, and airlines figured it out. It’s a
perfect airplane for transatlantic routes with thin demand. Will something similar happen
with the A380 if Airbus stops making it in a few years? Will the A380 have its moment in the
2030s at slot-controlled airports with limited capacity? Maybe by then more airlines will want
gigantic jets.
Troubled Mexican Airline Interjet Grounds Some of Its Aircraft: You probably don’t
need to be an aircraft maintenance expert to know Interjet never should have bought the
Sukhoi Superjet 100. Sure, the Mexican discounter got a great deal, and maybe on paper it
“was the best choice for Interjet given Mexico City’s temperatures, altitudes and the routes
they were intended to cover,” as the airline’s CEO told Bloomberg. But no other airline in the
Americas flies the Russian-made jet. Even in a best-case scenario, Interjet was going to
struggle with maintenance. But now that the jet has proved far less reliable than the airline’s
Airbus fleet, the situation is dire.
Those 4-Digit Flight Designations? Their Days May Be Numbered: The Los Angeles
Times has a cute story about flight numbers, reporting that many larger airlines are running
out of possible numbers. So far, according to the story, airlines don’t have much of a
solution, though it notes some carriers use the same flight numbers for out-and-back flights.
Here’s one short-term solution: Many airlines avoid unlucky numbers for flights, such as any
number starting with 13. Perhaps it’s time to retire that convention.

COMING UP

I’m working on a story about airlines that allow economy class travelers to buy up to a
business class-style experience, even while sitting in a seat with 30 or 32 inches of pitch.
Last week, I interviewed Ghislaine Van Branteghem, Air France’s catering product manager
for long-haul flights, about her airline’s premium food offering. On many flights, Air France
not only gives out the usual free food, but also sells high-end meals, such as
a quintessentially French meal with duck foie gras as starter, lamb stew as a main course,
camembert as a cheese course, and chocolate Paris-Brest, a French pastry, as
dessert. From several U.S. cities, it’s available for $25, or 8,500 frequent flyer miles.
I learned only two to three percent of long-haul passengers buy the special meals, part of
Air France’s a la carte menu, and that classic French food often sells best. Van Branteghem
said meals are more popular on U.S. routes than on African ones. And while the program
produces revenue, for now, she said, it’s more about offering customers a choice.
“The main objective is to increase our customer satisfaction but we also have a margin from
the a la carte meal,” she said. “It’s also not a very important margin. What is important is to
give the customer the choice and to improve satisfaction. We think if the customer is
satisfied they will fly again with us.”
Van Branteghem said free meals will remain on long-haul routes, and selling food is not a
test to see if the airline can some day charge for all food on longer routes.
Look for the full story soon.

FLYING WITH A BABY

I’m a newish dad, and last year, I took my now nine-month-old on eight flights, enough to
make me something of a baby travel expert. Last week, I shared some of my new
knowledge with Conde Nast Traveler for a story called, Everything You Need to Know
About Flying with a Baby.
I realize I’m in the minority here, but I don’t understand why parents would hold a baby on
their lap for an entire flight. Yes, it’s expensive to buy your kid a seat, but so many aspects
about having children are expensive. Sometimes, you need to err on the side of caution,
even if the risk of disaster is low. At least that’s my opinion.
Here’s what I say in the piece.

“YOU WOULDN’T HOLD YOUR BABY IN YOUR LAP IN A CAR, EVEN IF

YOU WERE ONLY GOING A MILE AWAY AT TEN MPH. SO WHY WOULD

YOU HOLD YOUR BABY ON AN AIRPLANE RACING ON A RUNWAY AT 150

MPH? IT MAKES NO SENSE, AND IT’S NOT SAFE. IN SEVERE

TURBULENCE, OR IN A SURVIVABLE CRASH, YOU MAY NOT BE ABLE TO

HOLD ONTO YOUR BABY. THERE HAVE BEEN SOME PUSHES IN THE

PAST TO MAKE CAR SEATS REQUIRED, BUT THERE’S NEVER MUCH

APPETITE FOR IT. THAT’S A SHAME, BECAUSE IT’S THE RIGHT THING TO

DO. YOU’LL HAVE TO BUY A SEAT FOR YOUR CHILD AT AGE TWO,

ANYWAY. YOU MIGHT AS WELL START EARLY.”

What do you think? Do you agree? Or do you think I’m being too harsh, considering most
kids do just fine without a car seat?
Send me an email with your thoughts. I’m at bss@skift.com.

SUBSCRIBE

Skift Airline Business Reporter Brian Sumers [bss@skift.com] curates the Skift Airline
Innovation Report. Skift emails the newsletter every Wednesday. Have a story idea? Or a
juicy news tip? Want to share a memo? Send me an email or tweet me.

SUBSCRIBE TO THE SKIFT AIRLINE INNOVATION REPORT

Tags: airline innovation report, airline passenger experience, airport lounges

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Photo Credit: European and U.S. airlines have made some significant cuts to product but they continue to invest in
lounges. Pictured is the fruit buffet at a United Airlines club. Dion Hinchcliffe / Flickr

Rooms, Hotels

AccorHotels Is Working on a Smart

Room That’s Accessible and
Personalized
Deanna Ting, Skift
 
- Nov 22, 2017 4:42 pm
That AccorHotels is using the Internet of Things and other innovative tech to create
more personalized and accessible guest rooms is an idea we can definitely get behind.
But we wonder what the company’s plans might be to incorporate loyalty into the
initiative. It would be crucial in adding value for Accorhotels, property owners, and
guests.
— Deanna Ting

If it seems as if nearly every major hotel company is working on a “smart” or “connected”

hotel room powered by the Internet of Things, then it’s because they are.
The latest hotel company to be testing this smart hotel room concept is Paris-
based AccorHotels.
Damien Perrot, senior vice president of design solutions for AccorHotels, told Skift that the
company is testing technology that uses voice activation and and the Internet of Things to
make the hotel room experience more accessible and personalized.
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A model smart room at the company’s Paris headquarters incorporates a variety of
technologies and accessibility features to accommodate up to three guests at a time.
They include:

 A Google Home voice assistant;

 A connected tablet that controls lighting, music, the bed headboard, curtains, TV,
and other audiovisual equipment in the room;
 A special LED lighting system that senses motion at night to automatically turn on
 Sleep aids, like Dodow, described as a “luminous metronome that promotes both
concentration or sleep,” and a Dreem headband that has “brain energy sensors and
a relaxation system;” and
 Aromatherapy aids like Sensorwake, which helps you wake up to a certain aroma,
like coffee, tea, or a sea breeze, and Skinjay shower capsules that contain essential
oils.

“Voice is the future,” said Perrot. “To be able to use it to access the TV, go to Netflix
directly, or select your favorite song — we’re hoping to connect all of those elements to
enhance the guest room experience. All of these elements and innovation in technology
help improve the usage of the room.”

DIFFERENT APPROACHES TO THE CONNECTED ROOM

As Skift has noted before with how Marriott and Hilton are approaching the connected
room, hotel chains are applying different strategies in implementing these technologies.
While Hilton has developed its own proprietary system that doesn’t yet incorporate voice
activation, Marriott is working with partners, Legrand and Samsung, to develop a connected
room that includes voice activation.
AccorHotels, like Marriott, is not developing its own proprietary technology to power these
smart rooms. Perrot didn’t name which brands AccorHotels is working with, with the
exception of Google, but he said, “We’re working with them — both startups and bigger
brands — to make this into a real use case at the hotels. We’re developing this in
partnership with the brands and with hotel guests, and learning from them, and applying it to
the technology. We don’t have the ambition to develop this new technology ourselves.”
Hilton is planning to use a guest’s own smartphone to “power” the connected technology in
its connected room, while Marriott is planning to use both voice activation and the TV
remote to do so, with possible plans to incorporate guests’ own smartphones.
AccorHotels, however, is testing he use of both voice activation and in-room tablets.
Perrot said the decision to use an in-room tablet was prompted by the fact that “many
guests don’t want to have to download another app that they only use when they’re in the
hotel. For this room, the decision was to put in a real tablet with all the functionality already
built in, and they can use the table to connect everything.”
As for a loyalty tie-in and the ability to personalize the room experience, Perrot said that
loyalty will also be taken into consideration at some point. However, to date, there is no
formal incorporation of Accor’s Le Club AccorHotels loyalty program in this new smart room
concept.
Hilton, however, plans to use the Hilton Honors program in its connected room concept via
member profiles, and Marriott is also considering doing something similar with its own
Internet of Things guest room.
Loyalty will certainly play a major role in the development of these new high-tech rooms.
Without a loyalty tie-in, it would be much more challenging for hotels to have access to
customer data that allows them to personalize the individual guest experience.

FOCUSING ON ACCESSIBILITY IN SMART HOTEL ROOM DESIGN

Another important facet of AccorHotels’ smart room concept is its commitment to

accessibility for guests with disabilities or reduced mobility. That means wardrobes with
sliding shelves and rods for easy access; TVs that swivel 180 degrees; adjustable bed
heights; and bathrooms with easily adjustable shower heads, shower seats, and height-
adjustable sinks, as well as grab bars that double as towel rails.
“The objective is that the design becomes so simple that it will improve the guest
experience overall,” Perrot said. He said that while the room was designed to accommodate
travelers with reduced mobility, it was really created to be a room for everybody.
“We’re hoping that this room can be an example that you can design a room that can be
used by everyone, and can facilitate all types of travelers — families, people with
disabilities, children, the elderly. It’s another way of thinking about how to design the hotel
room,” Perrot said.
As for how much it would cost for hotel owners to have these types of rooms, Perrot said
the cost “is not really more expensive than a normal special needs room. It just depends on
the options you want to add to the room.”
AccorHotels’ smart room concept is still in a testing phase at the company’s headquarters,
but Perrot and his team are working on a timeline for piloting it in hotels.

COMMITTING TO ACCESSIBILITY ON A GLOBAL SCALE

AccorHotels has a partnership with partnership with Jaccede, a mobile app and website that
lets people review the accessibility of different places they visit, from restaurants and bars
to stores and hotels. The tie-in is part of the chain’s desire to make accessible hotel rooms
more personalized and more design-driven. To date, Jaccede has accessibility reviews for
more than 100,000 sites worldwide.
AccorHotels recently challenged its own employees to add their own reviews to Jaccede —
not only of the hotels where they work but in their surrounding neighborhoods.
Accessibility in accommodations is a major issue for the hospitality industry, and guidelines
for accessibility vary from region to region.
Anne-Sophie Beraud, vice president of diversity and inclusion for AccorHotels, said the
company’s partnership with Jaccede, as well as the development of its smart room concept,
show AccorHotels’ commitment to accessibility on a global scale.
Tags: accessibility, accessible travel, accor, accorhotels, Internet of Things, Iot

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Photo Credit: A rendering of AccorHotels' Smart Room concept,which includes Internet of Things connectivity, as well
as features that make the room more accessible for travelers who may have reduced mobility. Accorhotels