Distressed Merchandise – Airline Belly Hold
The Airline Cargo Manager today has the responsibility to maximise the Aircraft belly hold and ensure maximum ULD Load and Profitability of Cargo per flight.
Without sophisticated Knowledge Management and Business Intelligence Systems how does he ensure his Cargo shipments are Optimised and Profitable. Despite all the experience and knowledge of the Cargo Manager there is always inventory left on the table and unsold capacity.
Thinking aloud, what if there was a Web Site similar to eBay that is purely focused on Airline Cargo?
- Distressed Merchandise i.e. unsold Air Freight space could be sold by carrier to the highest bidder i.e. Shippers and Freight Forwarders community.
- The benefits for the individual Shippers & Freight Air Freight, the Community Web Site would offer at a discounted last minute at auction rates.
- The benefits for the Airlines participating in the scheme they would be to maximise belly hold and increase profitability every time .
Fact or Fiction?
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;
- 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)
- 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 capacity / demand planning
- Cargo rate optimization
- Cargo load optimization
- Disruptive elements/Missed connections
- Lost or Misplaced baggage
- Premium Travellers upsell additional sell vacations/ancillary
- Corporate Channel/customers
- Up sell, cross sell during the booking process
- Self Service
- Ancillary sales
- Distribution Cost to Serve/Channel of Service
- IROPS Aircraft re-routing
- Gate management
- Baggage management
- MRO Parts management
- Flight Planning/Forecasting
- Flight catering management
- Ground handling services
- Rostering/Crewing Manpower planning
- Staffing levels /self certifcation
- Digital Channels
- Corpoarte Sales
- Web Channel LTB Ratio’s and Stickyness
- Brand buzz analysis
- Sentiment analysis
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.