Airline executives discuss data fragmentation, AI strategy and consumer behavior
Where it might have an impact next is a bigger question. Certainly there are many applications in customer service, as highlighted by Olaf Backofen, head of global retail partnerships for Lufthansa Group, during a session at Phocuswright Europe 2025.
Backofen provided an example of a trial between AI-assistant Swifty and Swiss to provide a conversational booking service to travelers. The pilot, supported by some additional market research, has revealed that most customers still prefer traditional booking methods, although younger cohorts such as Gen Z are leaning more towards conversational AI interfaces.
Backofen was joined on stage by Filip Filipov, chief operating officer of AI specialist OAG, who stressed the importance of collaboration and industry openness to sharing data in order to drive further innovation amid rapid AI developments.
"I think this is the first time in the technological cycle where companies, airlines and other parts of the industry are starting to open up a little bit more to connect the data points across the customer and traveler experience," Filipov said.
The pair went on to discuss the industry's longstanding challenges, such as data fragmentation and legacy systems, and how they might hamper aviation's ability to harness AI effectively.
Backofen also spoke about retail transformation in aviation and the potential for airlines to sell tickets and other products and services across newer channels, such as social media platforms.
"There are a lot of challenges ahead [such as] legacy systems, and we have to create one booking. That's the first thing we have to do. It sounds easy, like you know it from Amazon, but we need to have one database, which enables us to have in one passenger name record, the possibility to buy tickets, ancillaries and everything else. But it will take four to five years until we have this in place."
The executives also discussed shifts in consumer behavior and challenges with AI, including its ability to disrupt aviation.
Source: PhocusWire
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