For over a decade more and more passenger liability regimes have come into existence on a global scale. Even though some jurisdictions are currently debating a revision of those rules, the level of consumer protection is unlikely to fall below the present standards.
In light of the International Air Transport Association (IATA) predicting a doubling of passenger demand until 2038 and Eurocontrol forecasting an increase of two hour delays by a factor of seven until 2040, it seems inevitable that the already very high volume of claims will continue to go up.
Therefore, the question arises how the airline industry can cope with the sheer number of passenger claims and complaints, how to tackle the claim-farming industry and meet customer expectation at the same time. As it is fair to say for other areas of the customers’ journey, the adequate response is through digitization and automation—and when it comes to passenger claims in particular through legal technology.
According to IATA’s 2019 Global Passenger Survey, passengers desire more control over their journey through technology and believe that this will improve their travel experience. - What IATA did not ask is whether passengers feel the same way, when it comes to irregularities and filing a claim for compensation. My guess would be that passengers expect the same level of control and a seamless customer journey that should also include the claim management.
There is a clear indication that airlines are automating their claims handling processes—but they need to reduce cost significantly in order to pass the benefits on to the passenger without eroding their margins over operating costs. It is a matter of how best to disrupt the claim agency business, enhancing passengers’ user experience and satisfaction, offering a seamless digital customer journey and regaining loyalty whilst increasing sales through smart payout solutions.