Successfully reported this slideshow.
Your SlideShare is downloading. ×

The Untapped Goldmine: Transforming Passenger Data into Personalised Airline Commerce

Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Upcoming SlideShare
 role of online retailing
role of online retailing
Loading in …3
×

Check these out next

1 of 18 Ad

The Untapped Goldmine: Transforming Passenger Data into Personalised Airline Commerce

Download to read offline

Tap into the goldmine that awaits all airlines with the help of passenger data. Learn how personalisation led by insights from passenger data can improve the overall passenger experience, leading to higher customer satisfaction and ancillary revenues.

Tap into the goldmine that awaits all airlines with the help of passenger data. Learn how personalisation led by insights from passenger data can improve the overall passenger experience, leading to higher customer satisfaction and ancillary revenues.

Advertisement
Advertisement

More Related Content

Recently uploaded (20)

Advertisement

The Untapped Goldmine: Transforming Passenger Data into Personalised Airline Commerce

  1. 1. The Untapped Goldmine: Transforming Passenger Data into Personalised Airline Commerce
  2. 2. Sizing & Seizing the Opportunity • 3.8 billion flyers annually1 • $57 billion annual ancillary2 revenue • $15–$17 per customer So how do we double, triple, or quadruple that?
  3. 3. The Idea: Hearts, Minds, Wallets • Behavioral economics married to digital commerce • Change consumer mindsets • Upend airline operating models • Drive net new revenue growth and profitability The race you want to be in: $15+++
  4. 4. What’s Currently Happening in Airline Tech What was once physical is now digital…
  5. 5. What’s Currently Happening in Airline Tech …and now material goods are being shaped by the digital world.
  6. 6. Losses vs. Gains for Airlines & Travelers Competitive ticket offers Convenient ticketing Inflight entertainment Line ups Baggage fees Meal offers Baggage wait Retail offers
  7. 7. Empathy Pays How steep is this hill? With a heavy backpack With others who care
  8. 8. Loss Aversion Pitch #1 Switch because current option is less convenient, less secure. Pitch #2 Switch because new option is more convenient, more secure. Consider this change experiment:
  9. 9. Loss Aversion Pitch #1 Switch because current option is less convenient, less secure. Pitch #2 Switch because new option is more convenient, more secure. Consider this change experiment: 2x
  10. 10. Deliberated vs. Impulse Decisions Savings Income Windfall Pocket Money
  11. 11. Distractions
  12. 12. Middle Options
  13. 13. Locus of Control • Overcoming learned helplessness • Tracking restores a degree of control
  14. 14. Nudging • Less shoving, more nudging
  15. 15. To Get More Ancillary Revenue Line ups Bags Food Meal preferences Drink preferences Personalization Duty free PlanningSeat swaps Bag order Entertainment preferences Retail therapy For PassengersRemind me of my choices Break Down the Journey & Rebuild It
  16. 16. Making Air Travel Wonderful Again What new habits & expectations could we build? Read: The Empowered Passenger
  17. 17. THANKS!
  18. 18. Sources 1. IATA http://www.telegraph.co.uk/travel/travel -truths/how-many-planes-are-there-in- the-world/, August 2017 2. http://www.ideaworkscompany.com/wp -content/uploads/2018/02/Press- Release-125-More-Global- Estimate.pdf, February 2018

Editor's Notes

  • - inflight broadband will increase ancillaries by $30B by 2035: https://www.inmarsat.com/news/34067/
  • Book online
    Download tickets
    Track flight changes
    optimized, new offers = revenue recovery and parity with the past
    small net changes in consumption habits
    little to no change in passenger satisfaction
    how to change the behaviors (passenger data)

  • Book online
    Download tickets
    Track flight changes
    optimized, new offers = revenue recovery and parity with the past
    small net changes in consumption habits
    little to no change in passenger satisfaction
    how to change the behaviors (passenger data)

  • Are you better off now then you were before?
    “people do not think of small outcomes in terms of changes in overall wealth, but rather in terms of losses or gains.” Daniel Khaneman and Amos Tversky
  • A highly regulated industry with a compliance and reliability focus doesn’t always transfer well to thinking about the passenger experience
    “the attractiveness of a possible gain is not nearly sufficient to compensate for the aversiveness of a possible loss.”
    Are there lessons for the airline industry? Putting this lens on ancillary revenue opportunities and the customer journey, consider the “risks” involved in unpredictable lineups, baggage waiting, and meal options (that often run out). Digital offers made available throughout the journey can be framed as much by reducing the possible losses of time and security as by enticements.

  • Different mental accounts for money from different sources: We spend windfall & pocket money easily; Income is less easy to relinquish, and savings the most difficult of all.
    For most flight bookings are highly deliberated purchases through hard-earned savings. Wrong time to ask them to part with more hard earned money!
    Incenting passengers closer to their flight time to spend a bit of pocket money to treat themselves to a quality meal may have more uptake – the impulse purchase
  • Thales seatback IFE
  • Choice architecture 
    There is a reason coffee shops offer their core product in three sizes - not two and not four. In experiments when the actual volume is adjusted by 2 ounces either up or down, 70% of consumers will choose the middle option and claim the size was “just right” for them.
    Why not try with baggage tagging? Option 1 for customers who are business class, high loyalty, or willing to pay a high fee. Option 3 could be the no additional pay option. Right in the middle could be the very tempting Option 2: a moderate fee to see your luggage come out before those opting for the no-fee option.

  •  Many instances where passengers feel no sense of control over their experience and airlines are hamstrung to change those circumstances, leaving all parties frustrated.
    Digital applications that give customers a feeling of control can mitigate some of these issues.
    Consider an app that allows tracking of various aspects of journey – bonus: extra marketing opportunities through the app

  •  The win-win is more consumers using an airline’s app, with a broader, more enticing set of offers available.
    If passengers were nudged at various touch points to download the app with the promise of an immediate and highly relevant “reward” (not necessarily financial), more uptake should be expected.

  •       -Behind every negative (line ups, waiting, crappy meals, limited retail, limited entertainment) lies a positive revenue opportunity in the waiting
    Not one single thing but a set of tailored offerings, culminating in great passenger experiences


×