Competition in the airline industry is becoming more and more intense. To remain competitive, airlines need make sure they have an effective flight route planner.
A flight route planner is critical to managing costs, distances, times and other important factors pertaining to efficiency. The key to synthesizing a workable strategy is big data. The airline industry generates colossal amounts of data, with thousands of terabytes generated every hour globally. Emanating from airport systems, booking data, and customer behavior, this information holds critical intelligence relevant to functions across the industry. Due to the intensity of competition in the sector, this information needs to be processed and analyzed in real time. Through rapid data analysis, the airline industry can deliver better service and forecast revenue, real demand, and route functionality. Here, we break down the diverse ways big data is shaping the industry.
A flight route planner has to respond to real demand patterns
When aspects of the airline industry were deregulated, companies began to look to data to devise flight routes. It was these changes that encouraged most airlines to turn to the hub and spoke model, as opposed to the routes approved by national flight boards. This led to the rise of major Middle Eastern airlines like Emirates and Etihad, who exploited their geographical location to market routes globally, from North America to the Far East. A similar principle was adopted by budget carriers, who are offering new transatlantic routes to respond to customer demand. For example, the Icelandic brand Wow! Airlines is using Reykjavik as a hub to offer low-cost flights between European cities and New York.
Create intelligent network and pricing models
Today’s industry demands more than a basic data capture strategy. Airlines need to be able to analyze big data encompassing the sales cycle, global demand patterns, and detailed interactions. It is vitally important that airlines study demand patterns to develop a pricing strategy. To illustrate, if the popularity of a certain route increases, the airline will need to adjust prices accordingly. Budget airline EasyJet was a pioneer of this strategy when they implemented an artificially intelligent algorithm that determined ticket prices based on real-time request data. Furthermore, big data can also generate sales forecasts, supplement route strategies, and facilitate code sharing – all of which contribute to an efficient flight route planner.
Airlines need to offer a fully personalized service
Many airlines are exploiting big data to enhance customer service. By collecting robust data sets from individual customers, brands can present customers with special offers that increase conversion. This strategy also enables airlines to forecast future customer behavior. For instance, airlines can launch promotions to specific destinations as they see real demand fluctuate. Valuable case studies from the industry include United Airline’s “collect, detect, act” protocol that analyzes over 150 aspects of a customer profile to generate personalized offers. Since implementing the system, United has reported a 15% increase in yearly revenue.
Big data enables the aviation industry to better understand their clientele. Through data analysis, brands can identify patterns, determine aspirations and forecast future sales. Therefore, to continue to attract new business and retain existing clientele, airlines need to partner with innovative tech companies to develop vertical analysis solutions. Through leveraging big data, airlines can remain competitive in an increasingly turbulent market.