A new approach in tracking travel demand
Riccardo Boin, Alex Cosmas, Alex Dichter and Nina Wittkamp – McKinsey & Company
The scale of the current crisis in airlines is unprecedented. To recover, the industry will need better data on where and when demand is likely to rebound.
In the United States, airline capacity drops are seven to 17 times larger than those during the global financial crisis of 2008. Managing the reopening and recovery will also be a significant challenge given the uncertainty that surrounds travel regulations and traveler sentiment. The traditional booking funnel, in which travelers move from interest to travel purchase, no longer follows its previous pattern and pace. As such, airlines will need to update their capacity choices and meet recovering travel demand—and with much shorter timelines than before.
As we heard from the CE of Edinburgh Airport this week, the scale of the current crisis in the airline sector is unprecedented. This article explains the industry will need better data on where and when demand is likely to rebound if it is to survive – link to full article below.