‘Three-P’ Approach to Airline Growth in 2017: Passengers, Payments and Profitability


With over 60% of global travellers identifying the smartphone as their “most indispensable” travel item, a new airline industry brief from CellPoint Mobile explains why carriers should embrace the ‘Three Ps’ – Passengers, Payments and Profitability – as key components of their strategy for revenue growth in 2017.

The airline industry is currently at a crossroads defined by high expectations for financial success, rising competition, and a mobile marketplace that is undergoing profound, rapid and global change.

Already accustomed to using smartphones to pay for everything from shared rides to in-app retail purchases, today’s passengers also are demanding access to the most popular digital wallet solutions and alternative payment methods (APMs) to meet their travel needs. Airlines that enable fast and convenient ways to pay through Android Pay, Apple Pay, PayPal, MasterPass, Visa Checkout and Alipay and other solutions are well positioned to capture lucrative revenues from the mobile marketplace.

By acknowledging the impact and potential of the Three Ps, airlines will be better positioned to create more paths to purchase for passengers and to reach their revenue goals for continued growth and increased profitability beyond 2017.

The industry brief from CellPoint Mobile highlights key trends and growth from across the airline and travel sectors, including:

  • Passengers: In a 2016 Expedia/Egencia survey, nearly 10,000 global travellers identified the smartphone as the “most indispensable item” to carry on their journeys, with rates as high as 90% among Asia-Pacific travellers confirming that passengers increasingly rely on mobile devices to research, plan, book and pay for their trips.
  • Payments: Travelers have access to several hundred global and regional mobile wallet solutions and alternative payment methods (APMs) enabling them to make purchases from anywhere – if airlines deploy them.
  • Profitability: eMarketer estimates that digital travel sales will reach $817 billion (USD) globally by 2020, led by Asia-Pacific, North America and Western Europe, while a new report by Allied Market Research estimates a $3.3 trillion global payments market by 2020.

Airlines that make mobile transactions easy and seamless for their passengers can capture new revenues that arise from a variety of opportunities, including the direct sale of tickets and services, ancillary products, day-of-travel purchases and upgrades, impulse purchases, loyalty program transactions, social media channels, chat bots and other emerging technologies.

(Source: CellPoint Mobile)