AirAsia always has big ambitions, evident from its growth from a two aircraft airline in 1993 flying to a handful of destinations to currently the biggest low cost carrier in Asia with 165 destinations in 25 countries.
Now its group chief executive officer Tan Sri Tony Fernandes has another vision – to transform AirAsia into a digital airline.
The carrier has started the ball rolling by investing heavily in digitalisation and has been growing its digital services such as BIG Duty Free, BIG Pay, BIG Loyalty, Rokki onboard WiFi and Xcite inflight entertainment.
Earlier this month it also acquired a 50% stake in Malaysia-based online travel planner, Touristly, for US$2.6 million to expand its ancillary portfolio.
Onboard WiFi service adds to AirAsia’s ancillary revenue. (Image credit: AirAsia)
Apart from meeting the needs of tech-savvy customers, the move is also a revenue booster for the airline.
“Digitalisation is expected to boost our ancillary income from RM46 (US$10.50) [per passenger] currently to our RM60 (US$13.70) target. Some of the initiatives include dynamic pricing of baggage allowance and Tune Protect insurance, offering an extra-seat option to our customers and enhancing our inflight meal options,” said Fernandes when announcing the airline’s vision late last year.
Hackathon first step towards engaging with startups
The budget carrier also hosted its first ever hackathon, AIRVOLUTION 2017 on March 18-19 as another step in its evolution into a digital airline company.
Additionally, the event supports the tech community in giving it a platform to explore new ideas, as well as to express their dreams through funding and guidance.
Twenty teams from the region took part in the event held at its new corporate headquarter, RedQ (Red Headquarters) in Sepang. The winner, Team Aviato from Singapore, won the challenge of profiling the airline’s fans based on their digital social footprint to improve customer experience.
AirAsia held its first hackathon at its RedQ. (Image credit: AirAsia)
Aireen Omar, AirAsia CEO, said AIRVOLUTION marked the start of the airline’s engagement with the tech community.
“We see the event as a continuous two-way conversation where AirAsia has the opportunity to learn from the best and, in return, is able to offer support to great ideas we feel the world should know about.”
Keeping digital customers happy and returning
Elaborating more on AirAsia’s digital ambition, the airline’s chief data and digital officer Nikunj Shanti said the digital revolution of today has changed the way customers interact with the brand and vice versa through web, social media, e-commerce.
The expectations of digital customers are rising such as a need for the airline they fly with to remember them across all points of interaction.
“They also want us to update them with all their travel details, among other expectations” said Nijunj when revealing ‘The Digital Story of AirAsia’ at the Travel Tech track, which WIT ran, at Echelon Malaysia in Penang (see chart below).
Using data to drive customised experience
The airline is using data to meet these expectations, as well as to deliver a customised experience to its guests.
“For example we’re using data to automatically save your last search. and display your last searched destination photo for you to continue booking. Or remember your three recent searches and if you have booked it, we will remind you to add your seats and baggage,” (see chart below).
On a side note, Nijunj said the airline was not selling its data to third party companies because it wants to own and sell the data itself to other travel suppliers.
Mobile app, innovation lab and more
With the growing trend of consumers shopping online with their mobile devices, AirAsia has been paying a lot of attention to its mobile app with regular updates, and the latest update has “transformed” it into a slick, fast booking platform with an easy-to-use interface.
In fact, Kaneswaran Avili, chief executive officer of Nida Rooms Malaysia, was so impressed with the updated app that he said he now makes all his AirAsia’s bookings on the app.
Nikunj Shanti: AirAsia using data to meet customers’ rising expectation. (Image credit: Corinne Wan)
Nijunj said that was the objective – to push customers to book via mobile device. He said more resources are being used to develop the app even though the percentage of bookings via the web is higher.
The airline is mulling the possibility of removing the dreaded OTP (one time password), which all online bookers are subject to enable the transactions to be accepted by the vendor, when using the mobile app. If that feature is introduced, this writer will be the first to use the app to book AirAsia’s flights.
AirAsia has also set up an innovation lab at its RedQ head office where startups can demonstrate their products and services, as well as to find solutions to common issues like making booking faster. (Read story of the RedQ).
The airline is testing a new self-service check-in kiosk made of cardboard, which could eventually replace the current metal kiosks.
With all the developments, it looks like AirAsia is well on its way to realise Fernandes’ vision of moving AirAsia from a marketing airline to a digital one.
• Featured image credit: bayuharsa/iStock