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
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  • Lost or Misplaced baggage
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  • Premium Travellers upsell additional sell vacations/ancillary
  • Corporate Channel/customers
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  • 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
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  • Gate management
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  • Baggage management
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  • MRO Parts management
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  • Flight Planning/Forecasting
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  • Flight catering management ƒ
  • Ground handling services
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  • Rostering/Crewing Manpower planning
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  • Staffing levels /self certifcation

Others

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

Inside the ‘Big Data’ Tornado – The Holy Grail. http://wp.me/p3aCAV-1p

Big Data and Digital revival in search of (The Holy Grail)

As we are all aware Airlines, Hotels, Financial Services organisations and Retail businesses today are undergoing a Big Data revival and Digital revolution – It is in the pursuit of the ultimate Customer Experience and the potential incremental profits that spur on the enterprise –  The speed and pace of progess is alarming and somewhat likened or akin to rushing head on in over a chasm!

The anology of a Chasm brings me to a book I read many years ago on the growth and development of organisations within the Hi Tech Industries authored by Geoffrey Moore. The book was titled ‘Crossing the Chasm’ and the anology and principles it is grounded on still hold true today, this was followed by another book called ‘Inside the Tornado’ which builds on the former book.  Both books a recommended read.

Below is a recent quote from the Author Geoffrey Moore in respect of Big Data and The Digital experience;

Geoffrey states;

We are putting the entire world on the Web and have digitized the consumer experience,” Moore said. “We are now digitizing the business experience including government and healthcare. The tool set you need to digitize requires Big Data because it’s not just about handling data before and after, it’s about handling data during transactions. Without Big Data, you are blind and deaf and in the middle of a freeway.”

Crossing the Chasm

In Mr Moore’s analogy organisations go through phases of maturity and evolve. It would be true to say they re -invent themselves and develop strategies and tactics to succeed and ‘Cross the Chasm’ or they fall off into the precipice to be forgotten.

Once on the other side they position their Brand, Products & Services to meet the needs of the customer and enter ‘The Tornado’ the place to be – where it is all happening, eventually emerging as a successful organisation into Main Street.

Inside the Tornado

Inside the Tornado

However I have an issue – My Issue with Big Data and playing inside a Tornado!

My issue is…

Most organisations have been advised, understood and embraced the idea of Big Data and indeed spent many $M in the process. They are now in a rush wholeheartedly towards the chasm to get inside the Tornado without fully understanding what is inside or what is required to gain entry!

Now in anticipation at the precipice they stand and reflect – they are indeed wondering what to do with all this data they have amassed and how they can use it to get them across the Chasm to ‘Inside the Tornado’ and the Holy Grail!   

What is needed now- Customer Insight, Segmentation and understanding of Customer Value -Perhaps?

More will follow on this topic – your views please welcome as always?