Trends Report

Use Customer Experience To Accelerate The Return On Invested Capital

February 28th, 2020

CX Is A Long-Term Investment And Airlines Need Appropriate Reasons To Invest

Companies generally delineate between opex (day-to-day operating expenses) and capex (capital expenditures to create future benefits). Airlines rely heavily on cash, debt, and capital to fund ongoing operations and future-oriented investments. When an airline announces plans to increase, upgrade, or refit its fleet, that is counted as a capital expense or investment.
Airlines can direct their capital investments toward many things, including fleet upgrades, cabin refurbishments, website or mobile app enhancements, new in-flight entertainment systems, and onboard Wi-Fi. Such investments may directly or indirectly affect CX quality; conversely, CX may directly or indirectly affect ROIC. Investments that pay off quicker by adding business value from income creation and cost savings provide accelerated returns and raise shareholder value.

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