We’re creating a more connected travel industry, underpinned by sustainability and long-term investor relations.
This week at the CAPA Asia Aviation Summit, I participated in a lively panel discussion on the opportunities and risks of big data in the airline industry. There’s no doubt that big data will change the way companies do business and airlines will need to adapt accordingly.
Multiple surveys show that companies that are data-driven – meaning those that can gather, process and analyse data in real-time as it flows though the business- perform better than their competitors and make better decisions.
According to a recent report by McKinsey, being data-driven results in a 23x greater likelihood of customer acquisition, 6x greater likelihood of customer retention, and a 19x greater likelihood of profitability.
Big data offers an opportunity for travel companies to transform the way they operate and to create smart processes. But a successful data-driven strategy will need to include 3 critical elements: investing in new technology, investing in people with the right analytics capabilities, such as data scientists, and developing a flexible strategy, one which embraces and tests new ideas.
Photo courtesy of @designerjet
Some ideas won’t work, and to be truly innovative, it is important companies acknowledge this. The airline industry needs to be open to any challenges that all new technology brings. It’s also important to map existing data and then access that data to extract meaningful insights.
We’re helping airlines do this through our travel intelligence products and services. We’ve been able to leverage the increasing scale of computing power and storage capability to map processes, and analyse multiple and complex data sources. This allows us to generate insights and action across a number of areas, from sales optimisation to customer service and improvements in flight operations, just to mention a few.
While big data analytics is still in a stage of infancy for many in the airline industry, other sectors, like retail provide great examples of what can be done. We’ve learned a great deal from these examples and developed a range of data analytics tools to support airline decision-making. Amadeus Travel Intelligence is helping the travel sector to become ‘data ready’ by leveraging a unique combination of big data assets, technologies, and expert data scientists.
It was a fantastic opportunity to speak to the airline industry as a whole at the summit and I hope the discussions will fuel interest in the potential of big data. Have a look at our Twitter page and the hashtag #Capasummit for more insights.