The airline industry is a data-driven business, and every decision is data-based. All the decisions from pricing, booking flights, and segmentation of customers as per booking are data-based. If the data is not utilized properly, then it will lead to poor management such as inefficient flight schedules, and poor resource allocation that will ultimately affect customer experience.
So, where does the solution lie? The solution lies in effective data utilization by harnessing its power better and facilitating the airline industry to overcome its challenges and foster seamless passenger management. The application of Business Intelligence tools is the perfect way to find every bit of information that can give an airline sector a competitive advantage. Let us examine how BI, with its data power, helps in better passenger management
Resource and Crew Management
Business Intelligence tools, with their powerful data analytics, help in better crew management and facilitate proper utilization of resources. By analysis of past flight data, it forecasts the number of crew required for a particular flight. It further helps in saving costs and ensures that the right number of staff is available to meet the passenger’s needs.
Schedule Management by Minimizing Cancellation
By analyzing historical data, and market trends, and by identifying customer patterns, decision-makers can avoid the risk of cancellation. BI through data can forecast the demand as how many passengers will fly on the given route, or the probability of cancellation based on their past behavior. All analysis is done by taking into account several factors including holidays, seasonal fluctuations, etc. This data-driven approach facilitates passenger management.
Facilities better Air Safety
Passenger safety is the top priority for travel industries. Integration of Business Intelligence tools can create wonders by alerting unforeseen incidents or events with its data power. BI-enabled dashboards can give a real-time overview of all the information on various aspects, such as weather patterns, air traffic, and related potential risk factors. It allows authorities to take action and respond immediately to emerging safety concerns.
Some factors can help airlines identify the causes leading to fuel consumption that can be optimized by BI integration. The major reason contributing is the flight routes. Airlines can use data on flight routes and thus save fuel consumption. One of the airlines, Alaksha Airlines was able to burn around 13 percent less fuel per passenger mile as per industry average by leveraging data insights.
Better Revenue Management
Business intelligence tools with their forecasting capability, can help in better revenue management by considering historical data. By taking into account various data such as demand patterns, competitors’ pricing, and customer travel trends, airlines can make informed data-driven decisions regarding ticket pricing and crew allocation. For instance, it can track the period or the months that have more frequent travel and accordingly frame the pricing strategy.
There were already many airline industries that had implemented BI Solutions to smooth out their operations. A few of them are listed below
Indigo Airlines: Indigo Airlines has integrated a BI dashboard, named ‘Good Morning Airport Dashboard’ that locates key performance indicators of the stakeholders to make data-related decisions. Their goal was to get the right information at the right time to avoid further challenges and discrepancies.
Sabre Airlines: The airline wants to get real-time data that would help to analyze customer behavior better. The company had adopted BI solutions to get business insights and a complete overview of reservations, ticketing, and flight-related data. It resulted in getting business insights quickly and led to more revenue and increased client satisfaction.
Delta Airlines: The airline was facing difficulty in tracking and baggage handling. To find the solutions, the company integrated BI technology to identify the causes of mishandling luggage. Delta was able to get real-time data and helped them to automatically send alerts to baggage handlers in case of mishandling by allowing them to follow the progress of bags minute by minute.
Boosting efficiency in operations is the foremost goal of any industry. Airline companies can leverage Business intelligence and data analytics to optimize their operations better manage costs and personalize customer experience by making timely decisions.
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