Aerospace and Defense Review

Leveraging Data Analytics to Overcome the Aviation Industry Challenges

Data now plays a big hand in airlines' functioning from pre-flight to post-flight operations, including ticket purchase, seat selection, luggage, boarding, ground transportation, and more.

Fremont, CA: Technology is dramatically transforming every aspect of businesses. Organizations are looking to leverage technology to improve overall business efficiency and achieve higher profits. Technology is now helping businesses to connect with customers, make business decisions, and build workflows. The aviation industry is one of the many sectors that are looking to leverage the advancement in technology. Data now plays a big hand in airlines' functioning from pre-flight to post-flight operations, including ticket purchase, seat selection, luggage, boarding, ground transportation, and more. As a result, the data required for various use cases is collected through multiple touchpoints during the customer's journey.

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Flight booking has transformed significantly over the years. First, it was visiting travel agencies, followed by the age of mobile booking. Organizations today have access to real-time data that enables them to take informed steps towards operational efficiency and improved customer experience. The airline industry has become highly competitive as the number of participants continues to rise. Despite generating billions of dollars every year, the industry has a cumulative profit margin of less than one percent. This is primarily because of the industry's complex landscape and the pending issues faced by new airlines. An uneven global playing field, revenue vulnerability, an incredibly variable planning horizon, high cyclicality and seasonality, fierce competition, excessive government intervention and top fixed, and low marginal cost are all responsible for the small profit margins.

Top 20 MRO Companies - 2020Big data analytics is one technology that can help the aviation industry overcome these challenges and improve profit margins. It includes benefits such as timely responses to current and future market demands, advanced planning, and strategically aligned decision making, as well as crystal clear comprehension and monitoring of all main performance drivers relevant to the airline industry.

Increase in Airline Revenue

Data analytics can be used to understand the customer's preferences and deliver personalized solutions. For instance, data analytics can be used in ticket booking, where airlines can target customers with customized offers while optimizing the price in real-time using predictive analysis techniques.

Smart Maintenance

With smart data analytics, customers can avoid many issues, such as baggage tracking. RFID technology helps prevent mishandling of baggage while predictive analytics improves the predictability of fleet reliability. Big data analytics can also be used in monitoring airport traffic. As the number of flights increases, big data will enable airlines to optimize the use of airspace, particularly when it comes to runway bandwidth, flight routes, and types of aircraft.

Cost Reduction

The introduction of big data can help airlines save big bucks. For example, if baggage tracking is dealt with by data analytics, then there will be no need to reimburse passengers for the miscarriage of their baggage. Simultaneously, real-time monitoring of fuel consumption can help achieve improved fuel consumption, which can save large sums of money for the airlines.

See also: Top Analytics Solution Companies

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