Article | September 3, 2021
The global airline industry is currently going through unprecedented financial damage. A few factors contributing are high operational costs, increased security costs, low customer satisfaction, low revenue, and frequent dynamic shifts in air travel.
Hence, it’s a high time for airlines businesses to resolve their multitude of issues for its economy to recover. To leverage this goal, the industry should leverage its most high-volume asset—analytics. Analytics will help drive the airline industry's growth rate in the coming years.
It’s because, Developing new data applications will bring a handful of digital marketing opportunities in the next five years. And these applications will bridge the gap in the industry.
Welcome to the New Age of Analytics
This topic of discussion is not new. But the new thing about analytics is that it is changing the airline industry data collection process. Analytics has become an essential part because the pandemic has forced countless non-digital airline businesses to shift to online operations.
Advanced analytics with innovative data technologies is becoming popular due to its numerous applications. To name a few, it provides smart management abilities and a proper decision-making system. So, to get a hand over this, marketers should have a razor-sharp focus to upgrade their analytics.
With advanced analytics, airlines can deliver the right information to the right audience at the right time. And when customers access the right information efficiently, they turn into prospective clients. In addition, by using analytics as part of online operations, airlines can survive without a dedicated offline presence.
With the digital transformation happening in the aviation industry, it at a turning point. The situation now is an “adapt or die” one. This policy is generating opportunities for airlines that are making significant changes to their current old business model. However, such a transformation is only possible when analytical technologies are fully adapted. This way, marketers can easily capitalize on operating online by being agile and have adaptable tools.
How can Marketers Adapt Analytics?
As a marketer in the digital era, you need to organize data with the help of technology. By organizing data, you can easily collect data from channels such as social media, loyalty programs, and other online forums. Here are some to use Analytics to empower digital transformation:
Power of Personalization
Digital technologies offer marketing and sales opportunities in direct and indirect channels. For supplies and buyers, this means they can establish greater contact with consumers. It will result in a significant way to sell and buy more products. However, you can take customer interaction a step further by offering personalized offers and discounts with analytics.
Investing in Loyal Customer Base
The most important digital opportunity comes from loyalty programs. Offering it can provide marketers with substantial amounts of customer information. Additionally, there are three other focus areas where you can use analytics:
Partnership with leading technology providers
Investing in these customer-centric areas using analytics will gradually deliver proven results.
Empowering Strategies using Analytics
The next step is to develop a comprehensive data platform strategy by including a data integration layer. By combining traditional and new data sources, this layer will make a flexible and more accessible data architecture to scale airline industry data. This will allow marketers to gain insights into their changing customer behavior.
Hence, adding a data integration layer will also need considerable effort and investment to deploy a cloud platform, an analytic-data-warehouse layer, and a team that maintains the data platform.
So, what are the Exact Ways Analytics is Going to Help Marketers?
The advanced airline industry analysis will help in making cost reductions. Whether it is from fuel consumption, deploying technology, or smart manufacturing, analytics can solve cost-related issues at once. For this, airline businesses must deploy AI systems with machine algorithms, which will help marketers to collect the exact data. Then they can easily analyze the estimations and can reduce them as per the requirements.
The addition to cost reduction, predictive analysis can help by keeping customers up-to-date in real-time. You can enhance Customer satisfaction by promoting offers based on their demand. Once you can have genuine insights and information about your customers and understand their behavior beforehand, you can approach them with the right message, solutions, and services by giving the right reason to invest.
Most importantly, predictive analytics will help speed up the response rate to customers' queries and solve them in no time. Today the response speed matters because airline customers are constantly shifting their travel behaviors. As a result, they now seek customized approaches compared to the traditional approach.
For example, Delta Airlines deployed advanced predictive analytics with AI. They optimized their operations through innovative customer services. Delta Airlines invested a whopping $600,000 for automation software installation. The investment was successful as they were able to access their data effortlessly and were able to connect with their customers by offering them multitude of offers.
Today, airline companies need prompt and accurate performance measurements to take critical, appropriate, and timely actions. Big data analytics can automate certain daily activities. The activities such as prospects' queries, website visitors, landing page hits, and more can be watched daily or weekly. With big data being so effective it will also help you understand the core ingredients for revenue generation. In the end, such advancement will stimulate airline industry data growth.
This is of utmost importance for the airline industry's growth rate. You can develop various innovative models and strategies and avoid risks while implementing them using Advanced Data Analytics.
The risks could be like a data breach, technical factors, organizational operations, customer data, and more. To counter back these risks, you should have proper strategic or annual safety objectives. Advanced analytics have higher levels of excellence that alleviate performance drifts. It will also help you to achieve and maintain through a proper monitoring and testing system.
For example, British easyJet has diminished its operational challenges using AI. With the help of IT, it used data science to improve its pricing strategy, manage inventory, and lowered risk factors. As a result, the company observed an increase in profits of almost 20% in 2021.
What’s Next for You with Analytics?
Marketers should be astute and apprehensive about Analytics. Understanding the upcoming trends of analytics are vital. In addition, the current situation also demands a holistic approach that supports technology (digitalization). Having appropriate approaches will lead you to stand out in this competitive industry.
Taking advantage of data for your existing or potential customers can help you to recognize more information about their activities. So that you can include more innovative techniques and can attract potential leads before they are gone. With technically sound data analytics you can experiment with different customer-centric strategies like:
Building responsive landing pages that get fit in every screen
Being more flexible with your prospects and enhancing interactions either through social media or a website.
Creating platform-specific content to improve customer interaction.
The strategies mentioned above will help you in collecting more data and curating on-demand content/information. By adopting these strategies, you can provide a data-backed open online platform in which you can easily connect with your customers.
Once you have grabbed the technique for your digital marketing needs, tapping big data solutions will be a much better way than before. Therefore, it is crucial to keep legacy thinking aside and welcome innovation onboard.
Frequently Asked Questions
What is the importance of analytics in the airlines business?
Analytics play a vital role in airline businesses. It helps in cost reductions, which could result in investing in better ways. Also, data helps to avoid breaches, provide safety measures, collect huge amounts of information, and enhances operational functionalities.
Does analytics require proper strategies to function in an airline business?
Yes! To implement analytics in your airline business, you need a strategic approach. Analytics provides statistical analysis. Using it, you can investigate and analyze business performance and give insights about improvement as well.
What are the different types of analytics used in the aviation industry?
There are three types of analytics that airline businesses use:
Descriptive analytics: It tells the current business operation
Predictive analytics: It shows what could happen in real-time
Prescriptive analytics: It shows what should happen in the future.
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"text": "Analytics play a vital role in airline businesses. It helps in cost reductions, which could result in investing in better ways. Also, data helps to avoid breaches, provide safety measures, collect huge amounts of information, and enhances operational functionalities."
"name": "Does analytics require proper strategies to function in an airline business?",
"text": "Yes! To implement analytics in your airline business, you need a strategic approach. Analytics provides statistical analysis. Using it, you can investigate and analyze business performance and give insights about improvement as well."
"name": "What are the different types of analytics used in the aviation industry?",
"text": "There are three types of analytics that airline businesses use:
Descriptive analytics: It tells the current business operation
Predictive analytics: It shows what could happen in real-time
Prescriptive analytics: It shows what should happen in the future."
Article | September 3, 2021
To paint a picture of what corporate airfares will look like once planes return to the skies is becoming more difficult by the day — if not impossible. Airlines, for one, have more pressing matters to deal with as they fight for survival during the ongoing crisis. Most in the U.S. will be working through the fine print of the $2 trillion U.S. stimulus package that throws them a lifeline of $50 billion in grants and loans. Other carriers, particularly in Europe and Asia, have already downsized and furloughed most of their workforce and are now turning to refinancing. Cases in point include Air France-KLM, which is now looking for $6.5 billion in state-backed loans, while last week Singapore Airlines revealed it had secured $13 billion in new funding.
Article | September 3, 2021
Drones may be the source of groans in the aviation industry, with many causing delayed flights and safety hazards. But what about the vast potential for UAVs to provide assistance and even improve safety? Here's a look at how drones could help rather than hinder airports. The global commercial drone market is expected to grow by 26% each year from 2016 to reach a value of $10,738m by 2022. Even airports and airlines can benefit from the maturation of unmanned aerial vehicle (UAV) technology, with applications ranging from airport inspections to bird control and drone delivery.
Article | September 3, 2021
The airline industry has been an extremely tough marketplace. It takes a lot of effort to stand out from the competitors and to run business amidst everyday challenges to become top airlines in the country or worldwide. Yet, out of all this, the airline industry has maintained its dignity and has been successfully driven through market challenges.
Aside from the unique dynamics of the current COVID-19 crisis, marketers before used aviation marketing tactics in a standard way. But, the sudden outbreak of the COVID-19 pandemic made aviation marketing exceptionally challenging for airlines worldwide to forecast demand and kickstart airline businesses in the future.
But, as of now (after a year and half months from the pandemic outbreak), there is a lot of excitement about airline branding, airline marketing strategies, airline advertisements, and more. As a result, businesses are becoming confident that revitalizing their strategies would now take off effortlessly. Yet some challenges and many other uncertainties need to be addressed regarding the fast-changing business models, travel demand, revenue generation, sales, stability, and a lot more in the restart period.
Let’s put some light on those uncertainties in the airline industry.
As per IATA (2020), the change in the airline business model creates additional uncertainty. It has been observed that the present state of the economy is the ultimate game of risk to airline revenue management and planning. This includes airline marketing strategies, airline advertising campaigns, and prospects of branding as well.
The recent shift in business patterns have been caused and triggered by various events such as:
A sharp decline in demand stimulation techniques applied by airlines
Signs of disruption entering the market in the wake of the COVID-19 situation prevailing in countries
Disruption of profitable plans for future
Changing consumer behavior
Missing data connections and collection
As a result, these uncertain events demand a call for action across the entire airline sector value chain. The call must be initiated based on creative marketing strategy, prioritizing personalization, sustainability, and profitability.
Now, the question ascends, why does your marketing team need to think out-of-the-box altogether to re-create airline marketing strategies.
Read about it next!
Why Airline Marketing Strategies Need to be Out-of-the-Box
With the changes occurring in airline market dynamics, airline businesses have to reshuffle their marketing strategies. They have to be quick as novel opportunities are continuously pouring in. Despite the current situation that has put the airline market under stress, it has provided the foundations for a range of new blue ocean opportunities. This is where you can hop on those opportunities to re-scale your business.
Therefore, the internal and external variables have to be considered in any forecasting activities of airlines, including revenue management, pricing, network, and marketing planning. In other words, game-changing strategies are born of thinking out-of-the-box—a leap into the unexpected.
Here, creating effective aviation marketing strategies will fulfill the need to pursue a new product differentiation and revenue management angle. Doing so will also instill confidence back into the base of your airline business, including stakeholders. This is how your business can become successful again.
By now, you must have understood that this is where the power of marketing in aviation can play a vital role in diminishing all the challenges. But before your marketing head towards creating robust aviation marketing strategies, you should first know about the approach of 3 Cs to make a successful marketing venture.
3 Cs to Consider While Marketing Your Aviation Business
Marketing, as per the current scenario, will require rock-hard strategic preparation. Similarly, in aviation marketing also, your team needs to ensure consistent preparation. This continuous process will help the business build progressively in a constantly changing aviation business environment and fluctuating demands.
Following this approach will help better in building innovative strategies and simultaneously exploring a wide range of possibilities.
Before your marketing team heads to the stage of the plan, consider the assumptions bracing up in the current airline industry’s status. Then, your strategists should get hands-on to identify the possibilities to come ahead along with its results.
Keep a look at the limitations stirring in the current airline market scenario. Then consider how the prevailing weaknesses can be converted into strengths to become successful among your competitors.
To create out-of-the-box airline marketing strategies, which include airline advertisements, airline advertising campaigns, and more, you should plan to have a different context to stand out terrifically among other airline companies. In addition, marketing this way will give you surprising insights and help you emerge afterward through challenges that occurred due to the pandemic.
Now that you are aware of the critical things to consider in creating airline marketing strategies. It is time to go ahead with creating strategically planned strategies.
Here are some effective strategies discussed that would help to revitalize your airline business.
6 Airline Marketing Strategies
Introduce Loyalty Programs
The airline business is known for its range of offers of loyalty programs according to the target audience. Nearly all airline businesses create their ways to cater programs to a particular audience group or in general. However, loyalty programs work the same at the core, but to encourage audiences in the current time, you can offer different perks to them. So, be creative in creating campaigns, and you will find that your loyalty programs are capitalizing on your revenue and benefiting customers together.
Distinguish your Brand and Position Yourself
Branding and positioning have become essential for businesses operating in this pandemic time, where the market is now hugely competitive. So you have got to be quick to get your company identified by your customer base as well as the target ones.
While proceeding in this manner, your best strength will distinguish you from your competitors serving in the same area. To make your brand image outstanding, you need to study customer demographics related to airline services.
On the other hand, depending on the brand image you want to cultivate, you may need to create airline advertisements accordingly. It is because your brand will communicate a message to the worldwide population. And it’s important to consider how you want your target audience to think of you before you brand and position yourself through advertisements, social media platforms, and more. This is how you will be able to position yourself in every day changing aviation market dynamics.
Be Creative with an Airline Advertising Strategy
Out-of-the-box airline advertising strategies can help your business outshine amidst insane competition arising. It is because now you have to adjust according to the modern world scenario. Here, creative content plays an important role. Moreover, as you must be working remotely, the idea of using content marketing will massively support your advertising strategy. It would engage and inspire customers to leverage your services, and, ultimately, your revenue will take off once again.
Introduce Paid Ads
Now that you have a planned airline advertising strategy, you can also consider introducing paid ads in it. Yes! With the help of paid ads, you can target a location-wise audience more precisely.
Paid ads also help in revenue generation and collaborations. These aspects are directly proportional to the profit earned out of implementing strategies. For example, paid ads may involve videos creation on YouTube to create brand awareness on your website, landing pages, or content (articles, blogs, etc.) page. By doing this, your brand value is going to skyrocket than what was it before.
Set a Strategic Social Media Campaign
Social media campaigns are the best ways to reach your customers and target audiences under airline marketing strategies. Spreading your brand voice through different social media platforms will help you humanize your brand and deepen relationships with a larger population. In addition, other airlines use social media to reward customer loyalty, so you can also indulge in activities for the same.
For this, your marketing team should study which platforms your customer base visit frequently. Then, based on your research, you can do promotions, provide updates, make announcements, expand services or give some behind-the-scenes look of your company to customers as well as targeted audiences. It is because they appreciate participating in such events and get satisfied by relying on your company.
During an interview with Media 7, Didi Horn, Chief Executive Officer at SkyX, made a statement. He told,
“We have found that Linkedin has contributed the most to brand awareness over the years. In our business, there’s a very specific and niche target customer that we want to reach, so we don’t hesitate to invest in doing what it takes to build strong, lasting relationships.”
Marketing leaders like Didi Horn and more are becoming successful with their marketing activities on LinkedIn. Similarly, you also use LinkedIn—as one of the most influential social media platforms to spread the word about your business activities and reach out target audience easily.
Practice Influencer Marketing
Yes, you heard it right! Influencer marketing is booming in the current pandemic scenario. This is the best way of earning better ROI. Implementing influencer airline marketing strategies would help realize your business goals.
So, what goes under this marketing strategy?
The formula of storytelling through content is considered beneficial to increase airline business. Adding transparency in the strategies can also be one formula while practicing influencer marketing. Implementing this strategy will attract more audiences because they get influenced by interesting content, storytelling, company behind the scenes. This humanizes the brand altogether, giving audiences a factor of trust and loyalty.
As you have entered a completely different business scenario in the airline industry, your company needs robust marketing strategies.
It’s important to understand that change may be predictable, but growth isn’t. Business growth highly depends on all the little things you do consistently to make it happen. Since you’re competing with many other airline companies, developing a strategic aviation marketing plan can boost sustainable business growth.
Frequently Asked Questions
What is an airline marketing strategy?
An airline marketing strategy is a well-planned method in action that businesses create to fulfill goals such as boost revenue, surge engagement with customers, create brand visibility, positioning, target potential audience, and a lot more. Companies invest time and money to create a robust plan so that businesses can run effortlessly.
Why is airline marketing strategy important?
Airline marketing strategies are important for airlines to stand out firmly among the competitors, position their brand, create awareness among the existing customer base and attract more and more potential audiences through various online platforms.
What are the top 3 marketing strategies for the airline?
Although the marketing strategies involved in a business are critical, the top ones can be the following.
Paid media advertising
"name": "What is an airline marketing strategy?",
"text": "An airline marketing strategy is a well-planned method in action that businesses create to fulfill goals such as boost revenue, surge engagement with customers, create brand visibility, positioning, target potential audience, and a lot more. Companies invest time and money to create a robust plan so that businesses can run effortlessly."
"name": "Why is airline marketing strategy important?",
"text": "Airline marketing strategies are important for airlines to stand out firmly among the competitors, position their brand, create awareness among the existing customer base and attract more and more potential audiences through various online platforms."
"name": "What are the top 3 marketing strategies for the airline?",
"text": "Although the marketing strategies involved in a business are critical, the top ones can be the following.
Paid media advertising"