Virtual Reality (VR) and Augmented Reality (AR) in Airline Marketing Experiences
Berrin Ergin
ABSTRACT
The study provides the role of Virtual Reality (VR) and Augmented Reality (AR) in transforming how airlines are marketed by engaging customers and making decisions. The airlines have been working on immersive technologies to enable customers to have an immersive experience in a highly competitive market by offering virtual tours of cabins, seats and destinations.
In convergent parallel mixed methods design, 336 airline customers were sampled pre- and post-exposure in 42 semi-structured interviews and insights provided by Qantas and Lufthansa. Our quantitative methods and structural equation model showed that the application of immersive technologies made significant impacts: the engagement level went up 43% ( = +0.68, p =.001), and telepresence increased the purchase intent by 39 points. VR was more immersive than Augmented Reality (AR) and its effects were more substantial among millennial. Themes found were brilliant escapism, trust in decision making, and feelings attached facilitated quantitative results, yet impeded motion sickness (14%).
Findings validate S-O-R and engagement frameworks in the aviation industry and complement them with moderators. Airlines recommendations canconsist of 15-25% conversion growth with well-targeted VR/AR, where the AR focus is on mobile to access the catalogue. Regional airlines like Pakistan are assisted by inexpensive previews.
Issues relate to the lab environment: more research is necessary on how the actual bookings will change with time. VR/AR become essential in the face of sensory marketing, where inspirational customers will make travelers under USD 30 billion a USD 30 billion industry by 2035, making it essential to adopt VR/AR and take advantage of it.
