Big data is reshaping business. This is particularly the case in the airline industry, where on numerous occasions a big data case study has proven the industry is evolving.
Leveraging insights into big data can give airlines a huge advantage over competitors. Airlines generate a huge amount of data at every step of the customer journey. From booking, check in, boarding, and even during the flight, airlines can learn a huge amount about their client base. Along with loyalty programs, airlines arguably generate more customer data than any other industry.
However, many airlines are not taking full advantage of the data they have. With an enormous reservoir of data at their disposal, big data technology can transform the way airlines do business. By prioritizing data collection and analysis, even small airlines can respond to customer demands and market trends with precision and agility. So how are airlines benefiting from big data? Here, discover 5 inspiring case studies.
1. Encourage loyalty: United Airlines
Tailor-made offers will always appeal to the customer, thus encouraging loyalty. Airlines are in the fortunate position of being able to learn an enormous amount about their client base from data. Even a single booking contains data which can teach an airline a huge amount about its customers. For instance, United Airlines use their “collect, detect, act” protocol to analyze over 150 variables in each customer profile. These analyses measure everything from previous purchases to customer preferences in order to generate a tailor-made offer. The collect, detect, act initiative has increased United’s year-to-year revenue by over 15%.
2. Get to know the customer: British Airways
British Airways uses an intelligent ‘Know Me’ feature to provide personalized search results to customers. In this impressive big data case study, BA identified that their customer base largely consists of busy, time-pressed professionals who require fast, concise results. Therefore, ‘Know Me’ uses in-depth data analysis to provide relevant and targeted offers for their consideration. BA received a huge amount of positive feedback from clients who loved the fact that the company understood their travel needs.
3. Deploy artificial intelligence: EasyJet
Many airlines go a step further than basic data collection. With new technology, it is possible for companies to analyze big data accumulated from purchase activity to demand patterns. For instance, if an airline sees the demand for a certain route increasing, they can adjust prices accordingly. From this information, the airline can also identify which customer segments are price sensitive, and determine a segment’s price range for a given route.
A related big data case study comes from EasyJet. EasyJet invested in an artificially intelligent algorithm that determines seat pricing automatically, depending on demand. Furthermore, the system can also analyze historical data to predict demand patterns up to a year in advance. These analytics can also impact future decision-making about new routes, schedules, and codeshare alliances.
4. In-flight intelligence: Southwest Airlines
Inflight, vast amounts of data are generated throughout the journey – pilot reports, warning reports, control positions, and air traffic control communications. When this data is closely monitored and analyzed it can streamline operations and improve safety. For example, Southwest Airlines have teamed up with NASA to continually improve airline safety. By using intelligent algorithms, Southwest and NASA have created an automated system that can crunch an enormous amount of data to flag anomalies and prevent accidents.
5. Making lost bags a thing of the past: Delta
American airline Delta has developed an app which allows customers to track their bags on their smartphones. The concept is simple – the app uses exactly the same technology that the Delta ground staff use. So far, the app has been downloaded over 11 million times by Delta customers globally.
Take a big data case study and apply it to your organization
Big data can help airlines to have a better understanding of their customer. They can study each individual's behavior, track their preferences, and project future demands. By leveraging big data, airlines can develop their operations and marketing strategy, enabling them to stand out in an intensely competitive market.