Mixing Science and Technology for In-Flight Retail
retailciooutlook

Mixing Science and Technology for In-Flight Retail

By Retail CIO Outlook | Friday, October 25, 2019

Until now, airlines have focused profits mostly on ticket prices. However, this approach is on verge of redundancy, as an increasing percentage of revenue is generated by ancillary items such as checked baggage, onboard food, premium seat selection, and extra legroom. How can airlines include these and develop offers in a way bringing enormous revenue benefit for them.

 FREMONT, CA: The magic behind the great digital retailing for airlines is no more a magic. It is a perfect amalgamation of art, science, and technology to paint a picture that is simple yet sophisticated and provides seamless customer experience. Behind all the glam and glitz of retailing is a flexible, continuous process of data collection, verification, automation, and offer optimization — all functioning in a symphony to deliver an unhinging customer experience from start to finish.

The airline industry in the next decade will see digital-first carriers spear-heading the market. They will display increased proficiency in day-to-day operations while providing an exceptional in-flight experience. With added information about the passengers, a strong brand is built using coordinated, relevant communication across all factors by leveraging AI and the latest tech. To realize this idea, airlines need to transform digital channels so that seamless end-to-end customer experience is delivered. With several digital barriers in place, a disconnection between the carriers and the airlines’ digital storefront is formed. On the other hand, merchandising techniques have not been updated as well. So for an airline to achieve the best of digital the following tips will help: :

1. An All-In-One Package:

Many airlines struggle when it comes to the designing of the offers-like how much can be included in the offer? Which ancillaries to include or exclude from the established fares? Under what conditions can the offer be presented?

The gold standard of an airline retailer will be able to concoct a precise design up to the smallest of the details from a catalogue of ancillary products, either standalone or ATPCO-based.

In support of airline retail experience enhancement, ancillary catalogue management also comes along with the flexibility necessary for airlines. There are limitless options to leverage rich media and showcase all the investments in the new fleet with attractive cabins, menus, and lounges .Tailored offers for frequent flyers could encourage others to become loyal to the carrier. Improving digital shopping with free miles or a push bundle of ancillary options are among the most purchased items.

2. Mapping the Customer’s Journey:

The heart of the digital transformation of airline retail is the customers who choose a particular airline to fly. By diving deep into the entire journey of the customer in a holistic sense enables the airlines to pinpoint the gaps that exist. These gaps can make or break the customer service, as it can potentially influence a customer to drive revenues and perform better to provide a great experience of the brand. With new digital and modern models, the problem can be solved. The tough feat is to find out who did what in the first place. Technology does not bring any miracles, but it does create a change by collaborating with the human touch.

3. Testing and Automation:

Agility is the most important factor to stress on for enhancing the user experience and optimizing conversion. Majority of the carriers want to fly ahead of rigid rules and make them much more flexible to rapid automation and airline e-commerce.

By divulging on data and records, regardless of what the work is, data need to be managed. By embracing flexibility in sales and marketing, great strategies can facilitate planning. Still, if the newer transformation has to occur, then, multiple factors will hoard in infrastructure with the digital UX the travelers seek.

4. Science and Offer Optimization:

The airline committee will accelerate the optimization process by introducing newer technologies accordingly. The individual or group offers about seat, fare and associated ancillaries based on insights and science can be designed as well.

With technologies in place, the control over the design, the fitting offer, and also delivery, through an optimized digital user experience for passengers is simplified.

The assistance AI can be leveraged to automate all the heavy lifting, high precision, and value from the processed data with meaningful insights and prescriptive guidance infused into the airline’s commercial systems.

Soon, it would not be unusual to see data scientists playing the part of the essential members of revenue and pricing team to accelerate AI-driven growth across an airline’s eCommerce and revenue optimization initiatives.

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