Airline Leaders Address Data Fragmentation, AI Strategy, and Shifts in Consumer Behavior
The aviation sector has long integrated machine learning and artificial intelligence (AI) into operations such as dynamic pricing and predictive maintenance. Yet, pinpointing where AI will make its next significant impact remains a challenge. Customer service is emerging as a key area, as emphasized by Olaf Backofen, head of global retail partnerships for Lufthansa Group, during a discussion at Phocuswright Europe 2025.
Conversational AI in Booking Services
Backofen highlighted a pilot project involving the AI assistant Swifty and SWISS Airlines, aimed at creating a conversational booking experience for travelers. Early findings, supported by market research, indicate that traditional booking methods still dominate, though younger travelers, particularly Gen Z, show a stronger preference for AI-driven conversational interfaces.
Collaboration and Data Sharing: The Next Step
Filip Filipov, chief operating officer of AI specialist OAG, joined Backofen in stressing the need for greater collaboration and openness in data sharing across the aviation industry. He noted this marks a shift, with airlines and related companies beginning to connect data points along the customer journey more openly than before.
“This is the first time in the technological cycle where companies, airlines and other parts of the industry are starting to open up a little bit more to connect the data points across the customer and traveler experience,” Filipov said.
Challenges with Legacy Systems and Data Fragmentation
Both executives acknowledged persistent issues such as fragmented data and outdated legacy systems that hinder the effective application of AI in aviation. Backofen pointed out the complexity involved in creating a unified booking system capable of handling tickets, ancillaries, and other services within a single passenger record.
“It sounds simple—like the experience you get from Amazon—but we need one database. Achieving this will likely take four to five years,” Backofen explained.
Retail Transformation and New Sales Channels
Backofen also discussed the potential for airlines to expand retail offerings by selling tickets and related products through emerging channels, including social media platforms. This retail transformation could open new revenue streams but requires overcoming significant system integration challenges.
Consumer Behavior and AI’s Disruptive Potential
The conversation also covered changing consumer behaviors and the challenges AI poses in the aviation sector. While AI offers opportunities to enhance customer experience and operational efficiency, airlines must be mindful of evolving traveler preferences and the limitations of current technologies.
- Traditional booking methods remain preferred by most travelers, but younger generations are more open to AI-driven interfaces.
- Industry-wide data sharing is becoming more common, fostering innovation.
- Legacy systems and fragmented data present major obstacles to AI scalability.
- Unified booking platforms that integrate multiple services are critical but will take years to implement.
- Social media and new sales channels represent future growth areas.
Executives and strategists looking to deepen their understanding of AI’s role in aviation may find value in specialized training on applied AI technologies. For those interested, Complete AI Training offers up-to-date courses on AI applications across industries.
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