Market Trends of Passenger Service System Industry
Rise in Air Travel Passengers is Expected to Drive the Market Growth
- The passenger service system (PSS) has applications in mission-critical systems within the airline distribution system, supporting various airline processes related to servicing, delivering, and financially fulfilling orders. The increasing number of air passengers and the need for safe and hassle-free processes before, during, and after travel are significant factors contributing to the growing use of PSS in the airline industry.
- For instance, according to passenger numbers for September 2022 released by the International Air Transport Association (IATA), the rebound in air travel is still going strong. Revenue passenger kilometers (RPKs), which measure total traffic, increased by 57.0% in September 2022 compared to September 2021.
- Companies in the Air passenger service system type continue to expand a portfolio of customers to keep the economy running as they enter into a multi-year agreement to establish a stable revenue system; digitization, cloud, and various software solutions have been used to manage event booking and operations effectively.
- In February 2023, Sabre Corporation, one of the leading providers of technology and software that powers the global travel industry, announced the multi-year renewal of JetBlue's SabreSonic PSS agreement. The agreement also extends the carrier's long-term distribution agreement to continue offering its content on the Sabre GDS.
- In September 2023, Philippine Airlines picks Salesforce to enhance CX; the collaboration would aim initially on core functions – customer experience, marketing, and sales – with plans to explore expansion into other functional areas within PAL in the future as part of the company-wide journey towards full-fledged digital transformation.
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Asia-Pacific to Witness a Significant Growth Share during the Forecast Period
- In November 2022, Air India leased six Airbus A320 neo aircraft from CDB Aviation, a fully Irish-owned subsidiary of China Development Bank Financial Leasing Co Limited. This move comes as India's domestic and international travel industry is expected to quadruple to 400 million travelers in the next 5-7 years. Additionally, the country's overall air passenger traffic is projected to increase to about 827 million by 2032-2033.
- As economies around the world continue to open up for trade and travel, Asian airlines are expanding their flight networks. This is a much-needed change that has been long overdue, especially considering that airlines handled 330% more international passengers in the first half of 2022 compared to the same period in 2021.
- Moreover, India plans to invest close to USD 60 billion to construct 100 new airports in the next 10-15 years, with the aim of making air travel more affordable, according to the civil aviation minister. This investment is likely to increase the demand for passenger service systems by airlines in the region.
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