The estimated cost of disruption to airlines is 8% of their total revenue, or a substantial $60 billion worldwide. (Source: Wipro.)
Dealing with irregular operations in air travel is a big challenge. While we can't stop disruptions from happening, discovering an effective solution can significantly enhance the success of the airline and the passenger experience.
Working towards a solution is not only crucial, but it also holds the potential to positively impact the brand reputation and financial standing of airlines. In this blog, we'll explore the true cost of disruption and provide insights to help airlines achieve a smoother operational experience.
The cost for airlines
Airline disruptions have widespread effects, influencing various aspects of the industry beyond the initial incident.
A single delay or cancellation can trigger several further consequences, ranging from missed connections to stranded passengers and logistical nightmares for ground operations. This affects suppliers, airports, and ancillary services, not to mention the personal impact it has on passengers – and can therefore have significant economic consequences for an airline.
COVID-19 played a pivotal role in this, but subsequent factors such as airspace congestion, war, and climate change have all contributed to flight delays and cancellations becoming common in air travel. This emphasises the need for airlines to adopt proactive strategies and resilient systems to mitigate repercussions.
Allocating resources towards preventing customer dissatisfaction, rebooking passengers, and handling the domino effect on subsequent flights are pivotal in managing brand reputation and customer loyalty. This highlights the need for robust contingency plans and agile responses to navigate aviation disruption.
How passengers feel
When faced with flight cancellations, delays, or re-routing, passengers anticipate their airline to provide suitable accommodation and coordinate alternative transport to minimise inconvenience.
CMAC conducted independent research surveying 1,100 people who had taken a flight, for either business or leisure, in the past 12 months. When asked about their personal experiences during flight disruption, the findings indicate that among passengers who needed to arrange alternative transport due to disruptions, only 47% received assistance from the airline. 31% had to make their own arrangements, while 22% had another member of their party handle the task. This collectively represents over half (53%) of passengers whom the airline did not offer a solution.
When it comes to flight delays, although half of the passengers from the survey experienced delays that lasted under two hours, the other half exceeded three hours. Additionally, 23% of flight disruptions led to passengers experiencing delays of over five hours, with 10% of respondents facing delays surpassing 12 hours, or even failing to reach their destination altogether.
Although less frequent, these prolonged delays entail a substantially higher degree of disruption and inconvenience for affected passengers. Extended delays can greatly impact travellers due to compounded effects such as loss of time, missed flight connections, a financial burden, and heightened stress levels — especially when re-accommodation isn't offered. Therefore, prioritising the passenger experience and implementing a resilient, customer-centric strategy is crucial for airlines when faced with such occurrences.
Reputational damage
Flight disruptions can inflict significant damage to an airline's reputation. Delays, cancellations, and other operational issues can lead to frustrated customers, negative reviews, and eroded trust. News of such disruption can spread rapidly via online platforms and media, amplifying the impact on the airline's image. Repeated incidents of poor performance can tarnish the brand's reliability and credibility, potentially driving away both existing and potential customers. Nearly half (46%) of UK travellers from our survey expressed that their experience with flight delays or cancellations, along with the corresponding service received, has diminished their likelihood of choosing the same airline for future travel. Therefore, mitigating flight disruptions and ensuring efficient crisis management strategies are in place, are paramount for airlines in order to protect their reputation and maintain customer loyalty.
In conclusion, it is clear that the true cost of airline disruption extends beyond the visible delays and frustrations faced by passengers and the financial implications that occur. Implementing proactive measures is pivotal in safeguarding passenger well-being, preserving customer satisfaction, and upholding the brand's reputation. Prioritising passenger comfort and convenience helps alleviate disruption's adverse effects, nurturing trust and loyalty among customers.
With the right data and experience, airlines can respond effectively when things go wrong and have their brands associated with passenger security — creating a significant competitive advantage.
A new response to disruption
A ground transport service plays a crucial role for airlines when it comes to disruption. 82% of travellers said that their preference would be to travel with an airline that offered this service.
CMAC’s disruption management solution provides an avenue for airlines to secure passenger re-accommodation and ground transport seamlessly. Renowned for our expertise in handling intricate and challenging crew and passenger requirements, we leverage a seamless blend of technology-driven efficiency and round-the-clock support to accommodate passenger and airline expectations, minimising stress levels in the face of disruption.
Operating 24/7, 365 days per year, we deliver time-critical transport and accommodation solutions internationally, supported by our trusted and compliant international network of suppliers. Our commitment to excellence ensures that our clients, their passengers, and their crew have access to consistent and reliable support at their fingertips whenever, or wherever they need us.
We facilitate the safe movement of more than 3 million passengers each year. Our industry-leading service satisfaction rate of 99% reflects our unwavering dedication to providing exceptional service across the aviation landscape.
Contact our dedicated transport experts today at hello@cmacgroup.com to discover the possibilities of CMAC's ground transport solutions and keep your business moving.