In this dynamic episode of The Cashflow Show, recorded live at Tech Show London 2025, host Clayton M. Coke sits down with Alex Cruz, former CEO of British Airways, now Vice-Chairman of Westjet, to explore the modernization of the travel industry. With 35 years of experience, Alex discusses how outdated systems, like 70-year-old reservation codes, clash with rising customer expectations shaped by digital-first businesses. He delves into the transformative potential of AI in addressing complex operational challenges, boosting revenues, and enhancing customer experiences, while emphasizing the need for a risk-averse industry to embrace experimentation and cultural change.

Key Discussion Points

• Outdated Systems: The travel industry relies on 70-year-old structures, like six-digit reservation codes, and aging IT systems that struggle to meet modern demands. 
• Customer Expectations: Exposure to seamless digital apps has raised traveler expectations, creating pressure to modernize operations and baggage tracking. 
• AI’s Dual Role: AI is being adopted for internal efficiencies (e.g., data analysis) and solving complex industry challenges, like crew scheduling and dynamic pricing. 
• Revenue Impact: AI-driven pricing solutions can boost airline revenues by 5–10% without significantly affecting customers, leveraging price elasticity. 
• Cultural Barriers: The risk-averse nature of the travel industry slows AI adoption, requiring a cultural shift toward experimentation and learning from failures. 
• Future of AI: AI will reshape competition by enabling faster solution development, but businesses must ask smarter questions to maximize its value.

Key Takeaways

• The travel industry’s legacy systems are a bottleneck, unable to keep pace with digital-first customer expectations. 
• AI offers significant opportunities for operational efficiency and revenue growth, but its success depends on cultural openness to experimentation. 
• Businesses must prioritize value generation, with AI delivering measurable results like 5–10% revenue increases through dynamic pricing. 
• The human element—asking the right questions and fostering a learning culture—is critical to leveraging AI effectively. 
• Over the next five years, early AI adopters in travel will gain a competitive edge by solving complex problems faster.

Notable Quotes

• “We’re struggling with bringing together [customer] expectations with our older legacy landscapes.” – Alex Cruz 
• “AI is going to help us… digest many more pieces of information than standard old software or human beings were able to.” – Alex Cruz 
• “The big pressure is going to be on what questions are you asking? What is it that you really want?” – Alex Cruz

Actionable Insights for Businesses

1. Audit Legacy Systems: Assess outdated IT infrastructure and prioritize modernization to meet customer expectations and stay competitive. 
2. Experiment with AI: Start small with AI pilots for internal processes or pricing strategies, learning from failures to refine solutions. 
3. Foster a Learning Culture: Encourage teams to embrace risk-taking and experimentation to overcome the industry’s risk-averse mindset. 
4. Focus on Value: Ensure AI initiatives deliver clear ROI, such as cost savings or revenue increases, to secure stakeholder buy-in. 
5. Ask Smarter Questions: Train teams to define precise problems for AI to solve, maximizing the technology’s impact on business outcomes.

Resources

• LinkedIn: Follow Alex Cruz for insights on travel and technology. 
• Tech Show London: Learn about the event at techshowlondon.co.uk. 
• AI in Travel: Explore industry trends via IATA for airline technology advancements. 

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