SUTTON, March 13, 2018- When you are one of hundreds of passengers whose flights have been delayed or cancelled, it is a dispiriting and frustrating experience. More likely than not you will be standing in line waiting for information, or vouchers for a meal or hotel. Never mind those plans for business meetings, family reunions or holidays that are now in disarray.
Disruptions also put airlines under pressure as they work to get passenger journeys back on track. This can take time, during which the costs and stress rack up for all involved.
Understanding the full impact and cost of disruption is not easy. Some costs, for example staff overtime, are easier to quantify than indirect costs, such as negative exposure on social media.
Amadeus and T2RL estimate the cost to carriers is up to 8% of total worldwide airline revenues, which amounted to some $60 billion in 2016, according to their report, Shaping the Future of Airline Disruption Management. Using IATA’s global airline revenue projection of $824 billion in 2018, we may be looking at around $66 billion being wiped off the bottom line by disruptions this year.
But what if these situations could be turned on their head by progressively managing the event, rather than reacting to it?