New flight cancellation solution from Switchfly helps airlines assist stranded passengers in need of re-accommodation.
SAN FRANCISCO – Despite many advances in airline systems over the last decade, there is one problem area in airline operations that technology hasn't yet solved: cancelled flights and stranded passengers. Known as "irregular operations" (IROP), flights cancelled for non-weather reasons disrupt travel plans for hundreds of millions of US passengers each year.
For airlines, flight cancellations are a logistical and costly ordeal. Finding available hotel rooms for thousands of stranded passengers takes a toll on airline profits, employee satisfaction and customer retention. Fortunately, airlines and their passengers now have relief with Switchfly's Airline IROP Management solution.
"One in three cancelled flights in the US were due to IROP during the first quarter of 2017, and with over 3 million passengers in need of immediate re-accommodation, we knew our IROP solution could address this issue right away," said Daniel Farrar, CEO of Switchfly. "Our Airline IROP Management will radically improve airline communications and customer service for stranded passengers, while creating opportunity for airlines where previously there was only liability."
Switchfly, a travel commerce platform with the most robust global network of activity, air, car, hotel and insurance products that transforms travel experiences, launched the IROP solution earlier in the year and has been trialing the product in several markets.
For airlines using Switchfly's Airline IROP Management solution, stranded passengers are immediately alerted by SMS or email if their flight is cancelled and requires re-accommodation. Switchfly's comprehensive hotel supplier network and inventory of close to half a million unique hotel properties gives stranded passengers hotel choices, while airlines save with deeply discounted rates, and can integrate business rules to configure hotel options based on passengers' loyalty program membership and status.
Passengers can view available nearby hotel rooms and make their selection using a mobile device or laptop without ever having to approach the airport kiosk. Passengers can also purchase optional ancillary upgrades using cash or loyalty points (or cash + points), giving them more flexibility and choice during a stressful time.
The high price of irregular operations and angry passengers
To date, the losses and operational disruption associated with IROP have been treated by airlines as a cost of doing business. Switchfly intends to transform this approach by disrupting the disruptions, to help airlines better satisfy customers and minimize associated costs.
- On average, an airline's cost of rebooking all passengers from a cancelled flight in the US, including transportation costs, has been estimated at $250 USD per passenger and $4,000 USD per crew.
- For international routes, the cost of re-accommodating passengers on a single flight can reach tens of thousands of dollars.
- Each year, irregular operations (IROP) cost US airlines at least $8.3 Billion USD and even more in passengers' time lost at an estimated $16.7 Billion USD.
- The loss in demand as consumers avoid travel due to IROP is estimated at $3.9 Billion USD a year
Reduces customer compensation costs and relieves overwhelmed desk agents
"Airline IROP Management is easy to implement and completely scalable," added Bertrand Kientz, CEO of Conztanz, Switchfly's partner in the IROP solution and developer of the first independent travel data agility platform that enables more personalization and seamless integration and automation with airlines' complex back-end systems. "Airline IROP Management is turning a logistical, financial and travel nightmare into a distant memory for the airline industry and a less stressful experience for passengers across the globe.
Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.
She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
