India CX Report'25: Airlines

    Findings across passenger air carriers with Pan-India presence serving leisure as well as business travelers

    India CX Report'25: Airlines

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    During consideration, there is an opportunity to differentiate across monetary parameters – frequent flyer program and money saver offerings

    assessment

    In-flight, customer values timely communication on delays and entertainment services at-par with the international carriers

    airlines

    Customer requirements across post-flight experience have been consistent over time, resulting in undifferentiated delivery of CX across carriers


    Airlines must go beyond just fares and network - seamless customer experience, digital engagement, innovation, trust building and operational excellence are the true differentiators. Airlines need to master the art of making the choice effortless before the journey even begins

    Girish Nair

    Partner and Head, Aviation Sector

    Girish Nair

    Differentiating at the right journey touchpoints is the key to value creation

    Pre - flight

    Key customer considerations

    Was my booking and check-in experience with the airline seamless?

    • Importance of the stage

      36 per cent of the consumers put emphasis on pre-flight stage in defining the overall experience with the brand

    • Top rated experience parameters

      A) Onboarding experience

      B) Seamless check-in

      C) Transparency of information.

    • Hygiene parameters

      A) Frequent flyer programs

      B) Value for money offerings

    In - flight

    Key customer considerations

    Did the in - flight experience meet my expectation?

    • Importance of the stage

      58 per cent of the consumers put emphasis on in - flight stage in defining the overall experience with the brand

    • Top rated experience parameters

      A) In - flight service and support by staff

      B) Cabin comfort

      C) Safety compliance

    • Hygiene parameters

      A) In - flight entertainment

      B) Announcements and information

    Post - flight

    Key customer considerations

    Was my post-flight experience hassle-free?

    • Importance of the stage

      7 per cent of the consumers put emphasis on post-flight stage in defining the overall experience with the brand

    • Top rated experience parameters

      A) Baggage handling

      B) Customer support and response

    • Hygiene parameters

      A) Deboarding

    The segment demonstrates an average performance with a potential for differentiation across FFP and money saver offerings

    Q1 - Was my booking and check-in experience with the airline seamless?

    booking and check-in experience chart

    Key Insights

     

    Customers value on-time performance

    There is considerable variability in ratings across brands, particularly across Frequent Flyer Program (FFP) and value for money offerings. Therefore, brands should focus on differentiating their customer experience in these areas

    • I just want points to be reimbursed against my bookings or airline specific privileges. I will never remember to avail any rewards on clothes and shopping
    • The app should have my history of seat bookings and pick automatically book that seat using points
    • I already pay for lounge access through my credit cards, so I will not be willing to pay again as membership”.

    In-flight, customer values timely communication on delays and entertainment services at-par with the international carriers

    Q2 - Did the inflight experience meet my expectation?

    inflight experience chart

    Key Insights

     

    Domestic airlines have been rated low on In-flight entertainment vs foreign airlines. This might be an indicative of Indian travelers preferring foreign airlines when opting for overseas travel

    • Beyond in-flight entertainment, if I can get on airport entertainment as well

    Domestic airlines are also rated lower vs International carriers on quality and range of food

    • For two or two and a half hours flights, it’s better to not serve food vs serving cold food. Just good tea coffee will suffice

    Customers value timely communication on delays as it helps them plan the next step of the journey

    • As a business traveler, my only requirement is that the flight leaves on time. I do not want anything else under in-flight experience”.

    Post-flight experience is consistent across carriers indicating customer expectations have not changed over time

    Q3 - Was my post-flight experience hassle-free?

    post-flight experience chart

    Key Insights

     

    Customers expect prompt support and response and responsible baggage handling– 

    • While traveling with Carrier A, my luggage was misplaced. Although it was eventually found, the airline did not take immediate action and offered little assistance. They directed me to check elsewhere

    Organised deboarding is the last interaction customer has with the brand and is essential to close in on an overall great experience

    Striking the right balance between delighting customer and the cost of servicing them is key to maximising value

    Performance of the segment on prioritised experience attributes

    Customer segmentation based on satisfaction and loyalty

    Omnichannel services and hospitable staff are the key attributes where brands are meeting customer expectations. Other priority attributes include -

    • Customers prioritise carriers that offer competitive pricing and discounts, allowing them to save money on travel expenses.
    • Carriers that offer flexible booking options, including no or low change fees, make it easier for customers to manage their travel plans without incurring additional costs.
    • Multiple route options enable passengers to choose the most convenient and time-efficient flights, reducing overall travel time
    • Modern aircraft equipped with state-of-the-art amenities provide passengers with a more comfortable and luxurious flying experience, which go together with safety and reliability.

    Overly complex and restrictive redemption process makes it difficult for travelers to utilise their rewards in a convenient and straightforward manner, thereby leading to frustration and decreased loyalty to the program.

    Low performance of the segment across prioritised experience attributes can be mapped to low customer retention

    Customer segmentation based on satisfaction and loyalty

    (percentage share of respondents)

    Customer segmentation based on satisfaction and loyalty chart

    Customer retention is dependent on their satisfaction with the brand and their tendency to explore alternatives. ‘Ambassador’ are highly satisfied customers who will keep contributing to the brand’s success. ‘Switchers’ on the other hand, are always seeking better options. ‘Critics’ as the third segment, actively convey negative feedback about the brand, if not satisfied. Finally, ‘Dependents’ are customers who remain loyal despite low satisfaction due to lack of alternatives in the market.

    52 per cent of the customer base are ambassadors as their brand of choice meets their expectations on –

    • Responsive customer support
    • Aircraft and associated amenities

    However, 46 per cent of the consumers are likely to substitute their preferred brand if it fails to meet their expectations on –

    • Hospitality by staff
    • Safe and reliable operations by the carrier

    The key attribute driving both ambassadors and switchers for the Airlines segment is quality customer support

    Despite highest weightage of ‘Expectation’ pillar in defining customer experience, fulfilment on the requirement is lowest

    Performance across the propreitary Six pillars of Customer Experience

    (Weightage of the pillars to the overall experience requirements)

    Performance across the propreitary Six pillars of Customer Experience

    Expectation (22 per cent) and Integrity (19 per cent) are the key pillars of experience while making a purchase decision

    Within expectation, the top attributes driving a great experience are -

    • Consistent availability of airlines across multiple schedules and routes attracts more travelers, resulting in increased bookings and higher revenue.
    • Meeting expectations on cabin comfort and other service offerings, results in word-of-mouth recommendations from satisfied travelers can further enhance the airline's reputation

    Within integrity, the top attributes driving a great experience are -

    • Trusted operations build customer confidence in the airline's ability to deliver reliable and safe services.
    • Open availability of information is vital during crisis management like delays, cancellations, or emergencies.
    • Airlines that prioritise transparency and open communication foster a positive brand image. Customers are more likely to choose an airline they perceive as honest and dependable.

    Customers prioritise ‘Expectation’ pillar however, their willingness to pay a premium is higher for ‘Empathy’ pillar

    The top 5 experience attributes influencing the customer’s willing to pay a premium

    • Empathetic service and support from airline staff across online/ offline channels
    • Consistent delivery on high-end aircraft, fully integrated with latest amenities
    • Easy to use customer support with responsive and good resolution
    • Operations by trusted carrier which is well recommended within the social circle
    • Complete delivery on the expectations from product/ service for the money paid

    An individual’s willingness to pay a premium is driven by immediate needs. As the today’s customer evolves, the focal aspects of premiumisation has shifted from functionality to experience. These aspect may as well translate as personalised convenience, omnichannel browsing or even exclusivity in customer support.

    • 30 per cent of the customers, primarily leisure travelers, would pay more for an airline ticket with better service as they value the enhanced comfort, convenience, and overall travel experience it provides.
    • 29 per cent of the customers would pay more for better aircraft and latest amenities translating into cabin comfort
    • Considering the recent cases of aircraft malfunctions, it is evident that travel safety has become a key requirement with at least 29 per cent of the of the customers willing to pay more for the same ticket in a trusted airline vs a new airline
    • 28 per cent would pay more for a responsive customer support in getting hassle-free seat changes, refunds and reschedules

    With offerings like aisle seating, priority check-in and baggage allowance, only I will join a Loyalty program”.

    Our customer experience (CX) insights across sectors

    Mastering intentional experiences: India CX report' 25

    Benchmark experience from the customer’s viewpoint, to uncover prioritised attributes driving value

    Mastering intentional experiences: India CX report' 25

    Key Contacts

    Nikhil Sethi

    National Leader Consumer Goods and Co-Lead Customer & Operations

    KPMG in India

    Girish Nair

    Partner and Head, Aviation Sector

    KPMG in India