The national carrier, Kenya Airways, is looking to achieve savings of up to Ksh1 billion by switching to digital passenger management systems.
Kenya Airways Chief Information and Data Officer Frederick Gitonga revealed that the airline saved Sh300 million in 2023, by deploying technology solutions in key areas such as travel bookings, and expects more savings as more jobs go digital.
“We have been able to deploy internally developed systems that are able to properly serve our customers, capture any customer concerns as soon as possible, and improve response time at a very modest cost,” he said in an interview.
“It has helped us save money. Last year alone, we were able to save Sh0.3 billion in terms of energy usage within the company and this year we expect to exceed that figure to achieve savings of between Sh0.5 billion and Sh1 billion,” Mr Gitonga said.
Last year, KQ revamped its online booking systems, eliminating costly human interfaces that added to its overall expenses.
“We have revamped our digital channels, especially our website, to make it more customer-centric and user-friendly. We have simplified the concept of booking, payment and flying. This has enhanced the value of our offerings, resulting in a 30% increase in our sales,” the official added.
“We have reduced the number of calls to our customer service centre, which in itself has reduced the need for personal agents by about 50 per cent. Since we have simplified the customer journey on the website, customers no longer experience what we call service disruptions and have no difficulty trying to reach us,” said Mr Gitonga.
The new direct booking channel also saw KQ reduce the cost of middlemen agents.
“For customers, since you can complete every trip you need within the website, you will find the cost of dealing with us low, giving you flexibility in choosing prices and travel itinerary,” a KQ official added.
“Direct booking channels have been reduced, and expensive middlemen agents have also been eliminated. You can also create your ticket online and check in online,” said Mr Gitonga.
KQ posted a profit of Sh513 million in the first half of the year – its first in more than a decade since 2013 – boosted by higher revenues, a strong Kenyan shilling and the restructuring of its treasury loan facilities.
This saw the airline reverse a loss of Sh21.7 billion in the same period last year as it continues to show its potential for profitability.
The company’s non-operating costs, which include spending on key items such as interest and foreign exchange revaluation, fell to Sh687 million in the first half of the year, from Sh22.8 billion previously.
Meanwhile, KQ recorded an improved operating profit of Sh1.2 billion, compared to Sh998 million in June 2023.
The increase in operating profit was supported by rapid growth in revenues which reached Sh91.4 billion compared to Sh75 billion previously.