What price Airline Intelligence – Airlines can achieve an ROI of over 1,000% with $500 million in cost savings and revenue generation over typically over a five – six year period.

Airline Business Intelligence Trends

Business Intelligence and data analytics are becoming a buzzword in the Airline Industry board with the emphasis on Business Intelligence.

For us to understand the importance of this trend we need to be aware of the key trends driving the industry.

  • 56% of airlines will make R&D investments in passenger services via social media
  • 52% of airline companies will consider business intelligence as their major investment programmme in the next three years
  • 57% of airlines believe social media provides the greatest value as a marketing channel
  • 78% of airlines personalise service offers to their passengers though direct channels

But then we all understand this trending it is in every trade journal we read and every IT vendor collateral portfolio.

What is different though is the age old question of what do I do with all this data and how do I turn data into intelligence to enhance my business and in what BU areas will benefit most.

Here are a selected number of Business areas where BI and real-time analytics play a vital role within airlines;

Airline Cabin

  • Ancillary sales
  • Duty Free /On Board

Management of the seat factor and cabin shift

  • Overbooking capacity to ensure maximum seat factors with minimal off-loads and downgrades
  • Revenue mix/ Cabin mix via market segmentation 
  • Seat access and group acceptance
  • Pricing optimization
  • Partner code share/interline
  • Managing traffic flows (O&D) ƒ

Loyalty management

  • Identify the different clusters of customers/travellers by type /propensity
  • Target clusters with real time relevant messaging
  • Targeted promotions to ensure repeat revenue and reduced churn
  • Maximise Partner & Third Parties

Cargo management 
ƒ

  • Cargo capacity / demand planning ƒ
  • Cargo rate optimization
ƒ
  • Cargo load optimization
pallet management

Passenger business

  • Disruptive elements/Missed connections
ƒ
  • Lost or Misplaced baggage
ƒ
  • Premium Travellers upsell additional sell vacations/ancillary
  • Corporate Channel/customers
ƒ
  • Up sell, cross sell during the booking process ƒ
  • Self Service
  • Ancillary sales
  • Distribution Cost to Serve/Channel of Service

Flight operations

  • IROPS Aircraft re-routing
ƒ
  • Gate management
ƒ
  • Baggage management
ƒ
  • MRO Parts management
ƒ
  • Flight Planning/Forecasting
ƒ
  • Flight catering management ƒ
  • Ground handling services
ƒ
  • Rostering/Crewing Manpower planning
ƒ
  • Staffing levels /self certifcation

Others

  • Digital Channels
  • Corpoarte Sales
  • Web Channel LTB Ratio’s and Stickyness
  • Brand buzz analysis
ƒ
  • Sentiment analysis

Interesting History On 100 years of Aviation – Free ebook

Well worth a look for all the Aviation Geeks amongst us  http://www.atn.aero/analysis.pl?acateg=reports
There is a free elink to the book which features;

A timeline of key milestones in commercial air transport history. It gives an understanding of the path air transport has followed to become a major contributor to modern society by bringing together people from around the world, allowing for the exploration of the wonders of our planet, and by playing an important humanitarian role, for example through emergency assistance and through opportunities for family reunification. The air transport industry remains a fascinating sector. Its future will undoubtedly will bring new adventures -flights in orbit – and wondrous new technologies- flying with solar energy.