“The word ‘survival’ seems to be ever present whenever crisis management is discussed. That is not a state to aspire to.” This quote from book author Louai Al Roumani offers astounding insights into what airlines and airports can learn from crisis management in Syria and why this is important for future strategies. Roumani directed strategy at Syria’s largest private bank, BBSF, throughout the current conflict – including IS blowing up his bank branches, frequent mortar attacks and constant kidnap threats. He knows how to think in a real crisis. As we survey the diverse reactions seen across the airline industry, perhaps we could take his advice and shift our perspective a little?
Roumani’s book on his experiences – ‘Lessons from A Warzone’ – (published 2 April, Portfolio Penguin), shares his extraordinary story and, from reading a pre-launch interview (The Times, London), I think it could help every company leader.
There are two pieces of advice he shares that really resonated for me in relation to the stunned response of the airline industry to the COVID-19 crisis:
For many airlines, Roumani’s lessons need to be learnt from the COVID-19 crisis – just as they perhaps should have been learnt from earlier crises – particularly as the fault lines in the traditional ancillary revenue model become ever-more apparent whenever new pressure is inflicted. Right now, that outdated model is parked up alongside the grounded planes – going nowhere, delivering no revenue.
It doesn’t have to be that way. Even passengers grounded and isolated can continue to provide a revenue stream. Forward-thinking airlines such as Singapore Airlines and Lufthansa have adopted Omnichannel approaches that are continuing to drive ancillary revenues right now, creating revenue and maintaining the customer relationship.
Customers want an Omnichannel experience that is available 24/7 on their mobiles and laptops. They want a seamless experience that meets their need for pre-planned purchases, leading brands across a hugely expanded range of product categories, personalized offers, convenient delivery options, etc. Before the next crisis, more airlines must respond by developing as lifestyle brands that reach their customers in more ways, delivering these needs and driving revenue and loyalty.
By integrating digitally into their daily lives, the airline transforms its revenue opportunity from a fleeting, vague opportunity that is tied to the ‘Golden Hour’ of the passengers being in their seats to a 24/7 opportunity.
When the next crisis hits – and it will – the Omnichannel strategy cannot provide total immunity from the fallout, but at least it creates the opportunity for the airline to think well beyond ‘survival’.
2020 was devastating for aviation and travel. 32 airlines died - in some way or another. 2021 is going to herald a very different 'new normal'. The question is: are you ready?
Omnevo launch re-defines the post-covid ancillary revenue opportunity for aviation, travel retail & mobility industries