Over the next three years, all airlines plan to invest in IT systems, which will “allow them to get to know their passengers better and deliver tailored services directly”, according to the 15th annual SITA/Airline Business IT Trends Survey.

This year 100% of airlines surveyed plan to invest in business intelligence (BI) solutions, which allow them to know more about their customers and have better information for decision making in their operations. This is a huge jump from last year, when one in five airlines had no plans at all.

By 2016, some 97% also plan investments in mobile passenger services and personalisation. Together these will help boost sales via direct channels, from 54% up to 67%, and change how airlines deliver services to passengers.

At the launch of the 2013 Airline IT Trends Survey Results, SITA CEO Francesco Violante said, “All airlines are investing in business intelligence to improve their operations and boost revenues. We see a strong desire to increase revenues using techniques borrowed from the retail industry, including personalisation. Nearly three quarters of airlines rate business intelligence for sales and marketing as a high priority. The airlines’ investment plans show the future of the industry is smarter, more mobile and more personal.”

Only 9% of airlines currently rate data quality as meeting all their requirements, while just 7% have achieved the necessary integration of different data sources from across their company.

Over the last three years, offering mobile services to passengers has topped airlines’ investment list. It retains the number one place with 97% of airlines now investing, or planning to invest, in this area in the coming three years.

By 2016, nine out of 10 airlines plan to sell tickets via mobile phones. They expect to be rewarded with a leap in mobile sales to more than $70bn by 2016, or 10% of total sales, up from just below 3% today.  

Check-in apps are already available from 61% of airlines and flight search from 65%. The focus for these airlines will now shift over the next three years to add new services, such as missing bag reporting (60% of airlines), re-booking (63%), and customer feedback (57%).

Currently, 53% of airlines provide mobile boarding passes through their own airline application and this is set to rise to over 80% in 2016. Third-party travel wallets, such as the Apple Passbook, Samsung Wallet and Google Now, are also starting to feature. Today, only 21% of airlines provide boarding passes through other apps, but it will reach 62% in three years, giving passengers more choice.

This year’s survey revealed that ancillary revenue is of growing importance. Direct sales channels, such as the airline website, currently drive these revenues. Despite the fact that indirect channels account for nearly half of ticket sales, airlines earn on average nine times more ancillary revenue through direct channels. This looks set to continue, with 89% of ancillary revenues expected through direct channels by 2016, an increase from 87% today.