It’s a $700 billion industry where airlines are this year projected to make a net margin of just 5.1% – significantly less than the third parties engaged in airline seat distribution.
It’s a situation that the major distribution players may not want to change but, by sticking with tradition, airlines are trading off their ability to transform.
Hewlett Packard Enterprise is supporting companies in every major industry with their digital transformation strategies – and indeed digital transformation was the theme for its recent Discover 2016 London event, attended by more than 10,000 senior IT decision makers.
HPE is now bringing that unique cross-industry perspective to transforming the air transportation market with its Airline Passenger Solutions and a determination to prioritise the airline agenda.
The company will succeed because of its ability to foster collaboration and innovation across major consumer and retail industries and because it doesn’t have a conflict of interest.
HPE doesn’t own the third-party distribution platforms that would cause the company to prioritise conventional market practices and a different agenda than that of the airlines. With HPE, the airlines retain control of 100% of their strategy.
Some recent deals from a cross-section of the industry have generated growing confidence in the HPE offering.
These include a flag carrier making more than 300 flights a day that has reversed a previous decision and invested in HPE’s full Airline Passenger Solutions suite.
And at the other end of the scale, a major player operating more than 4,500 flights a day has entered into a ground-breaking relationship with HPE to mutually invest in Airline Passenger Solutions and to replace in-house technology in three key areas with solutions from HPE.
Brian Cook, vice president and general manager of HPE Travel & Transportation said: “We are establishing critical mass because we have a very different type of offering. We are the dark house. We are the disrupter of the status quo.”