Latest Videos

Step on to the Factory floor

Jetwave_video

The Factorydesign studio in London is famous for projects such as the Etihad A380 Residence and the Four Seasons jet experience. Join BBC on a tour of the studios where you can see the team in action – and a few prototypes too

04 October, 2017


JetWave on a jetplane

Jetwave_video

Curious to see how Lufthansa installs Honeywell’s JetWave wi-fi hardware systems on its A320s? Take a two-minute break and you can find out!

26 September, 2017


Visit Our YouTube Channel

Read Latest Issue

Three redesigned first class suites are due to be revealed imminently. Which do you think will be the
most impressive?

Supplier Spotlight

Join our
LinkedIn Group


Industry Opinion

« back to blog listings

Predictive analytics: The customer is king

Using predictive analytics in the hospitality industry is in the early stages, but is primed to soon take off. Airlines, hotels, restaurants and casinos are beginning to realize that they can improve their margins while taking customer satisfaction into the stratosphere.

The key is in in pairing real-time, location-based condition monitoring with predictive analytics models. If you can gauge where and when an issue may arise, such as a cancelled flight or a hotel room no-show, you can deal with the situation to make customers feel like kings – and capitalize on it.

Take flight cancellations, for example. If an airline used predictive analytics, as part of a predictive maintenance program, to determine when a certain plane might need maintenance, it might prevent a flight cancellation and subsequent passenger issues. Because airlines have a policy of overbooking flights in order to fill the seats of no-shows, any flight cancellations can seriously disrupt travel.

I was recently on a 5:30am flight from Denver to Chicago which was already overbooked, and the issue was exacerbated even more when the 8:00 am flight was cancelled. The airline offered a US$700 travel voucher for anyone who would take a different flight (I was tempted, but the next flight with seats available was at 6:00pm!) The result was disgruntled passengers whose flight had been cancelled (and they could not get another morning flight because all of the flights were overbooked to begin with), plus an expensive scrambling exercise for the airline.

The kicker here was that the 8:00am flight had been cancelled the day before. Let’s say the airline had been using predictive analytics for maintenance; it would have been able to predict with a great deal of certainty that the plane scheduled for the 8:00am flight would need maintenance days or weeks before then. It could then have pulled it off the rotation for maintenance during downtime, or replaced it with another plane.

There are other ways an airline could use predictive analytics, such as accurately estimating how many no-shows there will be for a given flight. Monitoring for conditions such as icy roads, traffic accidents, or how much traffic there is heading for the airport would underlie predictive models to tell them, with a great deal of certainty, that X% of passengers will not show. Then the airline could proactively offer empty seats at a discount, via text alerts, to loyalty customers. This could be a new, more reliable form of “standby” that pleases your frequent flyers and limits overbooking.

Hotels would benefit in a similar way. Using predictive analytics, again coupled with condition monitoring, a hotel could more accurately estimate how many empty rooms it will have by a certain time each day. Weather, traffic, big events in another town, etc could signal slack business or no-shows. Then, it could reach out to loyalty customers with a discount before dumping the rooms onto an aggregator site and possibly selling them at a loss.

With predictive analytics, the hospitality industry can change the way it deals with negative events; either by preventing them or by having a greater amount of time to prepare a response to an issue which enables the handling of exceptions in such a way that customers feel they have been treated well. Win:win.


Sean Riley is a director of strategic business solutions for Software AG and supports the supply chain practice for the Americas by working with the company's largest retail and manufacturing customers. His focus areas include value discovery and enablement, process improvement, financial and economic modeling, and collaboration enablement.

 

 

9 October 2015

Comments:

There are currently no comments.

If you would like to post a comment about this blog, please click here.
Read Latest Issue

Read Latest Issue

Web Exclusives

Airbus is consolidating cabin design and the passenger experience across its model range with the Airspace brand, which may just gain airlines a few more ‘likes’ on social media
Click here to read more

The Desire Lines concept has been conceived to shape a new future for the aerospace industry – and for Zodiac Aerospace
Click here to read more

The SportJet isn’t just another concept: this airborne sports clinic is part of Sukhoi’s strategy to boost sales of the SuperJet 100 regional aircraft, and it is ready for team orders
Click here to read more

Could a freighter hold the secret to the next-generation passenger experience? A3, an Airbus outpost in California, believes that with its Transpose concept, it does. Let’s give Transpose a closer look – and a reality check
Click here to read more

A major air disaster with low loss of life – 2013's Asiana 214 crash offers lessons in what went right and what went wrong inside the passenger cabin
Click here to read more


Supplier Spotlight

Supplier SpotlightClick here for listings and information on leading suppliers covering all aspects of the aircraft interiors industry. Want to see your company included? Contact simon.hughes@ukimediaevents.com for more details.

فروشگاه اینترنتی فروشگاه اینترنتی سیستم همکاری در فروش ماهواره جیبی اندروید کانال تلگرام چت روم ماهواره آنلاین اندروید دانلود فیلم فروشگظ;ه اینترنتی

Submit your industry opinion

Industry BlogDo you have an opinion you'd like to share with the aircraft interiors community? Good or bad, we'd like to hear your views and opinions on the leading issues shaping the industry. Share your comments by sending up to 500 words to adam.gavine@ukimediaevents.com

Submit Your Recruitment Ad

Recruitment AdTo send us your recruitment advertising or to receive information on placing a banner please email simon.hughes@ukimediaevents.com