Airlines bet big on data to rise profit
Saturday, September 3, 2016
In what has been seen as a turnaround, budget airlines are now focusing on collecting customer data in the drive to rise profits. Budget airlines once mocked rivals for such a move but now see data collection as an important profit making strategy.
In an attempt to catch up to other consumer based industry, airlines such as Ryanair and easyJet have launched customer loyalty schemes.
The loyalty schemes launched by the airlines are different from one another but both aim to achieve the same outcome.
easyjet have been relying on tech for a while now, using an algorithm that enables its website to provide upto date information on seat prices according to demand. Whereas Ryanair concentrate on add on incentives for its customers.
Customer databases have been valued at billions and what was once deemed only a viable option for flag carriers has now become a must for budget airlines as well.
Airlines intend to use the data just as leading retailers do. The information will enable the airlines to tailor offers to their customers needs efficiently and to provide a more personalised experience for passengers.
As reported by Reuters, the move by the low cost carriers has its critics. John Walton, who writes for online aviation publication, Runway Girl network, thinks that from a consumer perspective the airlines still have much work to do.
"I see few visible signs of European airlines — or indeed other airlines — using the rich data they hold to drive bookings and revenues," he said, citing a lack of useful, targeted offers from any of the half a dozen airline loyalty schemes he held.