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One size does not fit all: Customized offers are the way forward for airlines

Robert Booth

Head of Marketing, Airline Offer Suite, Amadeus

We’re all different. This is why a perfectly tailored suit will always fit better than one off the rack. The airline industry is catching on to this ‘one size does not fit all’ approach.

Our report, A New Formula for Airline Success: Why Customized Offers Are the Future of Airline Marketing and Revenue Management , written by Skift, looks at this key industry trend. It investigates why providing customized offers could soon take a commanding lead as the way airlines interact with travel shoppers.

What do we mean by customized offers? They enable airlines to intelligently price, position, and promote their products and services so that those offers are more likely to meet individualized customer needs. This trend matters. More than half of the airline executives surveyed by Skift expected this evolution to increase passenger revenue by 15% or more.

Customized offers can be beneficial for both customers and airlines, as customers can benefit from pricing that more closely fits how they value goods and services. They have more choice and can see and understand those choices more easily, while airlines can benefit from increased revenue and a move away from a decades-long push to commoditization.

In this report, we also aim to make it clear how the work on customized offer creation draws on an interdisciplinary approach across airline departments and technical disciplines. It brings a layman’s overview of some of the foundational theories, and covers some of the data science techniques available to airlines to apply those theories practically — from grouping customers based on similarities to optimizing prices. The question of understanding how customers make choices so that airlines can help guide customers to make the best decisions for both themselves and the airline is also explored. Additionally, the report looks at some of the challenges of distributing customized offers through many different channels.

Customized offers are possible today. The technology and knowledge is there for airlines to keep moving forward in this field. At Amadeus, we have a clear vision for the future of offer management that enables an airline to increase customer satisfaction, competitiveness, and revenue — all at the same time.

To find out more, download a copy of, A New Formula for Airline Success: Why Customized Offers Are the Future of Airline Marketing and Revenue Management here .


Tags

Airline IT