The COVID-19 pandemic has wreaked havoc on the aviation industry worldwide at unprecedented levels: seemingly crippling all airlines, large and small, and causing many to seek governmental help. Vietnam Airlines has even resorted to getting support from its workforce, as thousands of employees volunteered to work without pay or receive minimum wage during the outbreak. However, if there is one opportunity that Vietnam Airlines can take from the pandemic, it must be the process of digital transformation.
Digital transformation can help us to enhance customer experiences and, especially, to save on costs such as rent, box office fees, commissions, discounts, etc. Therefore, it’s not surprising that Vietnam Airlines decided to stay ahead of the game by constantly investing in building technical infrastructure and promoting the application of digital technology. Vietnam Airlines’ growth target on digital transformation was always set at two or three times higher than that of its overall growth. Results fell short over the years since it’s difficult and time-consuming to change consumer habits.
However, amidst the COVID-19 pandemic and social distancing, obeying lockdown rules became a practical way to “serve the country”, boosting online services as a result. These conditions led to a pivotal spin toward digital transformation for all businesses, including Vietnam Airlines.
Statistics show that in May 2020, Vietnam Airlines’ online ticket sales increased by 1.5 times year on year. The share of online sales also doubled that of May 2019 and surpassed the 2020 target by 35%. Customers have changed their behaviors and habits upon realizing the benefits of digital transformation.
Statistics show that in May 2020, Vietnam Airlines’ online ticket sales increased by 1.5 times year on year. The share of online sales also doubled that of May 2019 and surpassed the 2020 target by 35%. Customers have changed their behaviors and habits upon realizing the benefits of digital transformation.
This July, Vietnam Airlines will introduce its automated ticket-changes feature on the mobile app, allowing customers to buy and change tickets online (including flight dates and flight itineraries) in any market. Not only that, but many other new features and services are being added to the pipeline.
Every dark cloud has a silver lining, and Vietnam Airlines is making the most of these rare opportunities to mitigate the adverse market pressures on its business activities, strengthening its core for a robust post-pandemic comeback.