Share This Page

ShareShareShareShare

Share This Page

ShareShareShareShare

With the growing importance of retailing and merchandising to the travel industry, airlines are beginning to resemble retailers like Amazon.com more than their predecessors. Unlike the airlines of the 1980s, today’s carriers offer more than just travel. In fact, many offer loyalty programs, credit cards, insurance, hotel deals and other branded products and services to make your entire travel experience more enjoyable. But this is only the beginning.

Understand each customer’s purchasing DNA

To truly capitalize on the value of this retail and merchandising trend, airlines must learn to understand the buying habits and preferences of its customers in the same way that major retailers have pioneered successfully. By collecting all available data on a customer’s preferences, needs, buying habits and other related factors, airlines can offer targeted ancillary products and services that are more likely to result in purchases.

This is accomplished by using both standard analysis and unstructured big data analysis to model and predict individual customer behavior. Airlines can then use these results to identify the relevant purchasing DNA in each customer and deliver personalized merchandising offers that extend profitability.

Why historic purchasing data isn’t enough

Until recently, airlines used only historic customer data to personalize offers. To further extend personalization’s profitability today, airlines can tailor the customer experience through self-learning personalization engines. For example, when a customer arrives at a travel website, they may be shown three types of offers: X, Y and Z. If the customer selects offer Y, the personalization engine applies machine-learning algorithms to use that same type of offer for the customer in the future.

Most online personalization takes place at the transaction level. This is pre-login personalization, where a consumer is shown several complementary products when engaged in a buying decision. This can be effective, but it’s not a very deep level of personalization. Once a user has logged in, we can now deliver more. Airlines can combine external data sources, such as purchasing habits derived from credit card companies, to create an even more personalized user experience through an evolving social profile of the customer.

There is also a data-collecting process for gaining passenger insights through segmentation. From the time a ticket is purchased, airlines have several opportunities to integrate information from multiple channels, segment profitable customers and profile their behaviors. Once passenger behaviors and preferences are understood, airlines can choose product offers that best fit the passenger’s profile and develop ancillary products based on recommendations.

Developing successful ancillary products and services is a process that any airline can perfect based on having the right data and self-learning technologies. By collecting and analyzing customer data, airlines can offer revenue-generating products that help customers enjoy a more productive travel experience.

Discover how personalized customer experiences can make your brand more profitable. Download our new e-book by completing the form below.

SHARE THIS ARTICLE

Learn how to take your digital journey to the next level.

Check out our latest e-book, Get Personal to Make Digital Real.

form_img

Primary area of interestInfrastructure managementProduct engineering (R&D)Software testingDigital sales and marketingAgile developmentOther

DOWNLOAD THE E-BOOK

image

About the Author

Adnan Saulat
AVP & Head of Consulting - Travel, Transportation and Hospitality business

Adnan Saulat possesses two decades of IT Industry experience primarily in the Business consulting and analysis roles. Currently he heads ‘Solutions & Consulting Group’ within ‘Travel, Transportation and Hospitality’ vertical of Mindtree to create innovative solutions for Airlines, Hotels, Transportation and Travel service providers. Trained as a Mechanical Engineer and MBA; he started his career in Indian software services in the new millennium and has been part of the rapid growth of the industry. As a member of the Travel, Transportation & Hospitality Team at Mindtree, he has worked for various accounts like GDS, air transport regulation authorities, air transport industry technology providers.

Adnan possesses extensive experience in Travel & Transportation application development/management practices and product development. He is well versed in sales support activities, extensively traveled and has worked on long term assignments across USA, UK, Europe and Hong Kong/China. His specialties encompass Airports, Airlines, Hospitality, Car Rental, Global Delivery, Business Analysis, Mobility, Application Development / Management and Agile/SCRUM/SaFe methodologies.

Other Stories by the Author

Let's Talk About Your Needs

Thank you for your submission. We'll be in touch.