John Chapman, Vice President, Airline Group, Amadeus Asia Pacific, cited the example of Qantas which was working on a world-first project in Australia to create a next-generation airport experience.

“Frequent flyers carry a permanent baggage tag and chip enabled loyalty card, allowing them to check-in for their flight via a simple swipe, then drop their bag at a self-service counter, thereby eliminating all queues and check in delays.”

Amadeus is one of a number of vendors working with Qantas to create this world-first airport system.

One area he thinks airlines should invest in the new year is e-commerce. “With the rise of online bookings, airlines will not only have to compete with one another, they will also face stiff competition from online travel agencies, who are competing for the same consumers shopping for travel on the internet.

“This is why it is important that airlines invest in web booking options to ensure the services and features that their site offers are competitive.”

Ancillary services is another area of growth for airlines. “With the rise of LCCs in the Asia Pacific region, including now longhaul destinations, together with the need for airlines to exploit new sources of revenue beyond the base fare offer, the rise of ancillary services in Asia Pacific is a certainty.

“Airlines, especially full service carriers, can no longer afford to ignore the ancillary revenue trend and their competitiveness will increasingly depend on their ability to closely tailor their offering to match traveller preferences.”

The preliminary results of the Amadeus Guide to Ancillary Revenue by IdeaWorks showed that the growth of airline ancillary revenue continued in 2009. More carriers disclosed millions and even billions of dollars earned in ancillary receipts in their latest financial reports. Early results from an analysis of 2009 financial filings made by 96 airlines also indicate that ancillary revenue increased €3.32 billion from 2008 to a total of €11 billion ($13.5 billion) for 2009.

As for the airlines to watch next year, Chapman cited Garuda Indonesia which has been
“undergoing an impressive ‘5 star airline’ improvement initiative with new planes, flat bed seats, SkyTeam Alliance membership, expansion plans and an IPO on the cards – it’s definitely one to watch”.

“Air Asia also continues to expand its foothold across the region – especially with its new Air Asia X long haul brand.

“Further afield, Turkish Airlines has been quietly undergoing massive expansion – including several new routes into Asia. It is clearly fast becoming one of the largest carriers in Europe and globally, and offers a great onboard product.

“Qantas, as mentioned previously, are really the pioneers of new airport technology as they trial their next-generation airport system, which will be very exciting to watch. And both Cathay Pacific and Singapore Airlines are continuing with their migration to the Amadeus Altéa Customer Service System, which will enable them to provide customers with more seamless and personalised service once complete.”

For Chapman, the growth of low cost carriers is the one to watch. Budget carriers going longhaul, such as AirAsia X and Jetstar, pose a threat to full service carriers with their lower fare prices.

“We have also seen more full service carriers launching low cost carriers, such as Thai Tiger Airways – a partnership between Thai Airways and Tiger Airways – and All Nippon Airways’ new LCC which is to be launched in 2011.

“Clearly, LCCs are becoming are taking a bigger share of the overall travel market and are recording the strongest growth rates, with their model now being successful on long haul routes and not only short haul/regional markets. This will mean that travellers will have more choice in 2011 and airlines will have to work harder to maintain their competitiveness and share of the market as travel demand increases.”

Most over-used word of 2010?
Social media – while social media is definitely a new channel of communication that is a part of our everyday world, it is only effective if used in the right way to reach out to the right audience, in a way that is relevant for your business.

Most under-estimated word of 2010?
‘volcanic ash’. Who would ever have expected the disruption that could be caused by volcanic ash in 2010?

What word will disappear from the airline vocabulary?
The word ‘paper’ as in ‘paper tickets’ will disappear eventually as the industry adopts a fully electronic approach.

As the year winds to an end, what will you remember most about 2010?
For me personally, being based in Bangkok, I won’t forget the political unrest earlier this year. However, I continue to enjoy Thailand’s unique culture, friendly people and wonderful destinations and am happy to reside in the country. For our industry, it seems that change and volatility are the only things that seem to be a constant; it’s never a dull moment working in the travel and technology fields.

What are you most looking forward to in 2011?
As the economies in the region are well on their way to recovery and I am most definitely looking forward to seeing healthy travel business across Asia Pacific in 2011.

Featured image credit (Technology communication background): Ockra/iStock