With APAC leading in air travel, Digital Identity is key to managing growth
25/11/2024 by Yeoh Siew Hoon

Benefits are clear, but so are challenges of inter-operability and scalability

As passenger numbers soar globally, especially across Asia Pacific, the travel industry is looking to technology to make the airport experience faster, smoother, and less frustrating. Central to this vision is digital identity: a combination of biometrics, mobile IDs, and secure data-sharing that could allow travellers to verify their identity once and then pass through airports without needing to show physical documents at every checkpoint.

 


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Digital identity, especially through initiatives like IATA’s OneID, promises a world where passengers can check in, go through security, and board flights with just a facial scan or other biometric verification.

Last month, IATA and its partners completed its second proof-of-concept of its OneID programme, following a successful trial last year on a London-Rome route with British Airways. IATA partnered with Cathay Pacific, Hong Kong International Airport, Narita International Airport, Branchspace, Facephi, NEC, Neoke, Northern Block and SICPA for travel between Hong Kong and Tokyo on October 21 and 22.

The airport elements of this PoC were conducted in a live environment, building on an initial PoC carried out in a test environment in 2023.

Following the test, Nick Careen, IATA’s Senior Vice President for Operations, Safety, and Security, IATA, said, “A seamless fully digital travel experience powered by digital identity and biometrics has moved from theory to proven reality. The challenge now is to make this more efficient travel experience available to all travellers.”

At WiT Singapore, Vinoop Goel, Regional Director of Airports and External Relations at IATA, said, “Digital identity and biometrics are going to solve that problem of having to show your passport nine times or trying to prove who you are nine times.”

But as his colleague Careen acknowledged, the path to a seamless, globally interoperable system is complex, with significant technical, regulatory, and privacy challenges.

 

The Need for Speed: Managing Growth in Asia Pacific

The timing for digital identity couldn’t be better, especially in regions like Asia Pacific, where air travel is growing at unprecedented rates. The region is expected to add over 2.5 billion passengers by 2040, driven largely by rising demand in China and India.

“China today is the second largest air travel market in the world. It’ll soon be number one. And we expect India, which is the fifth largest market, to go up to number three with the US as number two,” Goel said.

CT Ooi, CEO, Travix International/Vice President, Trip.com Group, said that China and India are experiencing significant growth in both outbound and domestic air travel, with China currently leading but India showing strong potential for future growth.

“China outbound in 2024 – we forecast around 103-150 million travel passengers – while currently India is at only 35 million, so they’re still far behind. Looking at domestic size, within China it’s at 5.5 billion trips a year in 2024 while in India, it’s actually 3.5 billion.

“The middle income group from India right now is about 31% of the population. The government is forecasting 47% by 2030, so it’s actually a 50% increase, which is quite significant.”

For airports, the challenge is clear: there’s only so much room to expand physically. Without technology-driven efficiencies, handling this growth sustainably could become impossible. Basically, we can’t keep building ever larger airports.

 

CT Ooi: “If we have a way to retrieve those using OneID in a secure way, that will reduce friction and increase efficiencies.”

Trials prove “it works” – Digital ID promises to open world of “modern airline retailing”

What the OneID trials have shown, said Goel, is that “it works”.

“The technology is not rocket science. It’s basically a combination of biometrics and digital credentials, something that we all use in our day-to-day lives with banking or in other sectors.”

For Trip.com Group, a partner in the first trial between London and Rome, the benefits were clear. “From the first trial, we learned that it really takes away a lot of the pain points for consumers,” said Ooi. “Things can be much more efficient, and the data could be retrieved in a very secure way that reduces fraud.”

It also promises major efficiency gains. Ooi notes that his company receives a large number of customer service calls related to identity issues, such as name changes.

“If we have a way to retrieve those using OneID in a secure way, that will reduce friction and increase efficiencies,” he said. By reducing the need for manual interventions, digital identity can cut costs and improve the overall customer experience.

Beyond the airport, digital identity has the potential to transform the entire travel experience. “This is all part of what we call modern airline retailing,” Goel said. “Digital identity and biometrics are going to solve that problem. But then you can use the same identity for services beyond the airport, for your hotel booking, for your car rental, and for a completely seamless end-to-end travel.”

 

Vinoop Goel: “In order for it to work on a global scale, we need it to be interoperable, and we need governments to come on board.”

The Challenges of Scaling: Balancing Privacy and Security

But while the technology itself is straightforward, scaling it up globally presents unique challenges. One of the most significant is achieving interoperability across different countries, airports, and airline systems. For a digital identity system to truly be seamless, a biometric ID created in one country would need to be recognized by authorities in another.

“In order for it to work on a global scale, we need it to be interoperable, and we need governments to come on board,” Goel emphasised. “Some of it is new technology, and governments are always wary about it.”

This is particularly relevant in regions with varying privacy regulations, such as the EU’s GDPR, which sets strict standards for data protection. One of the biggest concerns for both governments and travellers is data privacy. Ensuring that this data remains secure is critical for public trust and long-term adoption.

If digital identity systems were to suffer a major breach, the industry’s credibility could take years to recover. “Any technology that handles biometrics or personal data is going to be a target for cybercriminals,” said Goel. “Robust security measures are not optional – they’re essential.”

Moreover, regulatory landscapes differ widely around the world, which could complicate the rollout of digital identity solutions. In Europe, privacy regulations are among the strictest, while other regions may have looser standards.

One unexpected accelerant for digital identity adoption has been the COVID-19 pandemic, which forced governments and the aviation industry to adopt new technologies for health screenings and travel credentials. “COVID taught us one thing: digital certificates work, and we are building off that,” Goel said.

But the path forward will require continuous government education and engagement. “We have been doing workshops in Asia Pacific to try to educate governments and tell them that this technology works. The response has been fairly positive,” said Goel.

Trip.com finds its own path with strategic airport partnerships

Meanwhile, Trip.com Group is doing what it can on its own to provide its customers with a seamless experience at strategic airports. It has a partnership in place with Istanbul airport, a popular gateway for Chinese travellers to Europe.

Said Ooi, “What we do with Istanbul airport is to make the customer experience more seamless. We have a dedicated information desk for customers to go for express service so they can get a fast track express service. They also get discounted service for lounges, a buggy and sleepover area.”

Despite the challenges, the future of digital identity in air travel is bright. With Asia Pacific leading the growth in global passenger numbers, the region has a strong incentive to make the technology work. Major airports in Singapore and Japan are already exploring digital identity solutions, while industry groups like IATA work to standardize the technology.

In an ideal future, passengers will be able to check in for their flights with a biometric scan, clear security seamlessly, and board planes without showing a single physical document. And the convenience could extend beyond the airport itself. A digital identity could unlock a true “single token” travel experience, where a traveller’s identity is linked to all parts of their journey, from flights to hotels to rental cars.

But to get there, the industry will need to tackle the dual challenges of interoperability and security. Digital identity systems will have to operate seamlessly across borders and comply with a patchwork of privacy regulations. And most importantly, they’ll need to earn – and keep – the trust of travellers.

“From our point of view as an OTA, digital identity has real potential to improve the travel experience,” said Ooi. “But the industry needs to get it right from the start, especially on security and privacy.”

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