Business Aviation
Article | January 7, 2022
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.
The Uncertainties
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.
Contrast
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.
Constrain
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.
Context
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.
Email marketing
Social media
Paid media advertising
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Air Transport
Article | July 26, 2022
The aviation industry is going through a lot of technological and operational transitions. Every day, new technologies in manufacturing, airports, passengers, security measures and more are being introduced or being implemented in the entire aviation ecosystem.
5G technology is one of the most critical technologies that is currently raising concerns. 5G technology is becoming a hot topic of discussion for governments worldwide in inferior ways. Many discussions are going on the shelf of safety of consumers. Similarly, there has been rising concern about the new 5G technology in the aviation industry.
Yes. 5G technology promises to bring some of the best opportunities for airlines. But what will be its impact on airline safety? Before we discuss the 5G rollout, let's highlight its ability to benefit the busiest industry globally.
The Ecosystem of 5G
Multiple technologies play a vital role in 5G technology in terms of coverage, such as EDGE, IoT, SD-WAN, and more. The ecosystem is rapidly expanding, even the industry of suppliers to aviation. It includes device manufacturing, network supply and maintenance, system integration, testing, and more suppliers.
IATA says with regard to the aviation industry, a projected $3.9 billion will be invested in 5G by 2026. Moreover, the projections are taking the entire industry to new altitudes. GSA also forecasts that the growth of 5G will be faster than 4G.
The Impact of 5G on the Different Aviation Sectors
The deployments and implementations of 5G can be profitable for every aviation sector if used appropriately. Speaking of the aviation sectors, the new 5G technology will transform the industry in four crucial areas. They are:
Manufacturing
Airports & Airlines
Travel
Security
Manufacturing
The manufacturing sector has massively developed partnerships with telecom players. The partnerships have led to the launch of 5G initiatives.
Nokia and Lufthansa came forward for inspection of engine parts remotely. With AR visualization and 3D technology, customers can have a visual impact on cabin interiors. 5G technology is also being implemented to trace and track systems in aircraft parts and maintain of operations using transmissions, real-time signal processing, and more.
Airports & Airlines
With 5G technology, Gogo Business Aviation is developing new designs for antennas and modems. The designs will enable the world's first in-flight connectivity (IFC) and 5G air-to-ground (ATG) networks by 2022.
“Towards the end of 2022, we will have sites built, and we will start flight testing,”
-Mike Syverson, senior vice president of engineering at Gogo
Gogo's 5G network will be limited to North America. It will be leveraging the existing 250 towers with its current 3G and 4G IFC networks. The 5G network will use spectrum in the 2.4 GHz band with the help of other booming technologies to provide the airplane-to-ground station link with higher bandwidth.
Travel
Viasat Inc. is known globally for offering broadband digital satellite communications, wireless networking services, and satellite communications products.
Delta Airlines has partnered with Viasat for its next-generation Ka-band satellite in-flight connectivity (IFC) solution. Delta intends to integrate Viasat technology into 757-200 aircraft, A321ceo, and the 737-900ER (new aircraft) to provide customers with safe and secure air travel.
Network Security
The European Aviation Safety Agency (EASA) discloses that an average of 1,000 attacks per month occur on aviation systems. Thus, it is becoming a real threat to airport security, safety, and reputation.
SmartSky Networks LLC is a leading satellite solution. It's also a wireless data and networking services provider globally. It caters to the commercial aviation industry. It offers its innovative air-to-ground inflight Wi-Fi network with 5G technology.
In June 2021, Honeywell and SmartSky introduced their high-speed connectivity. They announced it for their business aviation operators in North America. The partnership agreement boosts seamless connectivity in the commercial aviation market.
Looking at these developments made possible by the new 5G technology in the aviation industry, how has it become one of the industry's obstacles in terms of safety?
Let's highlight the picture here.
Aviation Has Expressed a Serious Concern
The Federal Aviation Administration (FAA) has warned about significant safety concerns in the 5G wireless network setup roadmap. The plan for theusage of C-Band spectrum is the prime reason. 5G network operations can interfere with the radar altimeter performance of aircraft.
"It is engaging with other agencies. So that aviation and 5G cellular technology can safely coexist."
-A Federal Aviation Administration spokeswoman
But with the modifications in the manufacturing processes of aircraft, the industry is encouraging manufacturers. Therefore, the manufacturers could conduct tests for 5G interference and modify aircraft designs.
5G Still Provides Hope for a More Friendly Flying Future
Aviation has a 5G rollout despite having no proof. The rollout is about interfering with safety concerns. Instead, 5G in aviation is burgeoning the importance of safety and security more efficiently. The emphasis on safety and security is now even more powerful. Pilots have been equipped with high communication tools with air control towers, especially in weather or technical challenges.
The new 5G technology is way near to providing superior in-flight bandwidth connectivity while improving operational efficiency. It is going to improve overall operational efficiency. Passengers will be able to take advantage of high-speed internet on planes. Also, business passengers can conduct their business activities while flying and saving precious time and effort.
Frequently Asked Questions
Is the new 5G technology harmful to airplanes?
According to the FAA, aviation operators should be prepared for the possibility that 5G technology could interfere with transmitters. The effects of 5G could cause certain safety malfunctions for airplanes. This could affect flight operations as well.
What are the disadvantages of 5G in aviation?
Aviation is getting benefits from 5G technology. But there is always the other side of the coin. So, the disadvantages could be as follows:
Obstructions in connectivity
High costs of technology
Operational hindrance
Unmatched frequencies
What is the market size of 5G in the aviation industry?
The overall market size of 5G in the aviation market was valued at $698.45 million in 2020. Now, it’s projected to extent $4,682.12 million by 2030.
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Air Transport
Article | July 15, 2022
Experience is Everything—human or mechanical. But Get it Right.
"AI's potential doesn't solely lie in its ability to improve business efficiency. Rather it lies in its ability to bridge the gap between businesses and customers. AI-powered communications enable for surged personalized and strengthening of information, stimulating customer trust and customer experiences."
- Kevin Gosschalk, CEO, Arkose Labs, in a conversation with Media 7.
Whether you make payments with a single tap in apps, ask Alexa to instruct in your smartphones, select Google assistance to find flights, or connect to airline companies, digital transformation is omnipresent. So, the appreciation comes naturally for how today's digital atmosphere transforms and affects our lives in every way.
Yes, you heard that right!
Using Google assistance to find flights is not the new way the industry uses AI. Instead, it has enhanced its way of AI usage into its process and operations. Like other businesses, aviation businesses are catching up well in using data and technology. With the help of these, they now create more compelling and prompter customer experiences.
The developments and revenues in the global aviation industry are skyrocketing. The industry expects almost 8.2 billion passengers to fly around the world by 2037. The rising numbers are because of digital transformation. The most interesting thing is aviation now has to manage high expectations of digital-savvy customers. It will be even more interesting now!
Before the blog breaks into discussing the futuristic airline customer experience, let's look at the flashback of the past customer experience scenarios (challenges) that prevailed in the airline industry.
Past Customer Experience Scenario in Airline
The aviation industry in 2018 recorded 4.4 billion passengers flying around the world. Furthermore, according to the IATA reports, the count is anticipated to reach 8.2 billion by 2037. But the industry is increasingly lacking behind in customer experience.
Complex booking procedures and missing out on the best flight offers because of complex app/website navigation and other potential customer services are issues raised in air travel today. Apart from this, customers also raise concerns over inflight infotainment systems. The systems merely do their job. Therefore, as many airport terminals are still empty, customer service representatives are working harder to overcome such issues.
As the industry has stepped into the fourth industrial revolution, AI rewards the best experiences for travels and other airline customer services. Now, airline marketers can find diverse AI-based digital solutions to sail through the cloud. And the findings are quite remarkable.
Let's come to the part where you will know how AI is helping the aviation industry scale its customer services.
How Can AI Enrich Airline and Scale Customer Services?
Airlines that leverage AI customer experience have had a significant advantage during the pandemic time. Their insights have been put into enriching the entire aviation business. Let's understand the 'how.'
Get Multiple Output in Seconds
When the demand for air fly rise, offering immediate services for customer handling teams becomes stressful. However, with AI, instances like this get a perfect solution.
AI can handle an infinite number of customers' demands at once. By leveraging AI-based digital solutions, you can scale up fulfilling airline operations in seconds. As a result, teams in your firm can easily diminish the increased demand for services and serve remarkable customer experience.
The benefit of AI can also be seen crosswise support channels. For instance, WestJet's ticket volume surged by 71% on Facebook Messenger and WhatsApp during the beginning weeks of COVID-19 disruption in North America. However, the airline kept its response time low as its virtual agent Juliet ultimately resolved 87% of tickets.
Identity New and Trending Issues
Aviation is an industry of challenges. Issues and obstacles keep knocking on the door of airline companies. In such cases, AI informs if there are any trending issues over channels. For example, during the COVID-19 outbreak, new onboard safety issues and questions towards social distancing surfaced for the first time. However, airlines have never come through about social distancing. So, by leveraging AI, they created a responsive plan for customers. They communicated the same through AI-enabled solutions on websites and applications.
In response to the coronavirus, Gartner suggests that companies should use chatbots in digital channels to focus on the most ordinarily asked questions to give solutions for customers.
Feedback Analysis
Air travel can be stressful at times, even for frequent and experienced travelers. For example, it could be passport-related or booking tickets, baggage checks, ticket prints, arrivals, departures, seat assistance, etc.
So, by analysis of data, artificial intelligence in customer experience learns about these pain points of airports and flight experiences. In this way, customer experience can be improved and enhanced simultaneously.
Then comes feedback. Using AI for feedback analysis, airlines can research the market. It can make informed decisions related to processes and operations.
"AI systems can quickly allow airlines to discover opportunities to intervene in the customer journey and turn a miserable experience into a delightful one. It also allows companies to respond faster in a synchronized and regulated way that is uniform with the business's values. Ultimately, we want to understand how an airline can fascinate a customer as well as where there is an abrasion in the customer journey and figure out how to fix it,"
- CEO of PureStrategy Inc. Briana Brownell
Briana highlights the growing relevance of natural language used in AI. Understanding technology in the processing and analysis of customer experience data thus allows businesses to explore the customer journey in their own words.
For example, ANIE, an AI assistance, can help customers find, book, and pay for flights.
Effective Communication
The speed of responsive communication to customer queries is highly considered to resolve issues. For example, airport issues like flight delays or baggage loss crop up quite often throwing. As a result, travelers usually get into a state of nervousness. However, when they do not get a response or explanation to their problems, they start considering other airlines for their future trips.
In these cases, AI software deployment can speed up and simplify services, automatically enhancing airline customer experience. In addition, effective customer emails with exact information can also solve significant issues and streamline employees' workflow using natural text.
Another way to automate and improve airline customer experience is chatbot development. Today, many airlines enhance their customer support with AI-powered chatbots on their websites and mobile applications.
The Business Insider’s research report says that by 2022, over 80% of airline businesses are likely to have chatbot automation implemented in operations.
These chatbots help passengers with bookings, managing flight schedules, and updating customers about general flight information. In addition, they can post queries and other types of assistance to get quick responses.
Self-Services at Airports
Easy self-check-ins, ticket booths, and overall communication (from booking to destination arrival) add to the comprehensive AI-based digital solutions.
The pandemic forced the aviation industry to witness the extraordinary rise of numerous contactless technologies. So, airports are now more focused on providing self-services for customers. These include contactless payments, luggage checks, robotic assistance for queries, and more like these.
Self-service systems in airports are critical automated systems. AI technology is installed to automate passenger journeys without any hurdles.
Today, airline companies and airports implement an end-to-end solution using artificial intelligence in customer experience to facilitate smooth passenger air travel and operations. In case of point, Delta Airlines, one of the world's largest global airlines, uses intelligent systems such as Fly to Gate by Thales. The system works with biometrics technology. The employees use it for the document scanning process to recognize and verify passengers at security checks.
Such technology reduces passenger check-in time and improves customer experience.
Future of AI Customer Experience in Airline Industry
There are many shreds of evidence that customers increasingly want a personal touch with their communications. They adore personalized services. Even airline companies are seeking profound connections with their customers. And this is the right time to act by offering personalized customer experiences.
Today, AI makes it possible for the entire airline industry to enhance customer experience with automation, provide self-service solutions, ensure safe air travel, and more. Technology is a powerful tool for airlines to make informed decisions that they couldn't take in the past few years. Now airlines can make decisions faster on essential decisions such as on pricing of tickets by analyzing data, enabling secure authentication of customers than before.
Ultimately, the success of artificial intelligence in customer experience is driven by having a deep understanding of different customer segments. By harnessing the power of conversational AI, airline businesses can improve their ROI, nurture long-term customer relationships, metrics being the core elements.
Frequently Asked Questions
How can airline companies improve their customer experience?
To improve customer experience, airline companies can follow these ways:
Focus on knowing the target audience
Meet unique and specific customer needs
Keep customers engaged on social media platforms
Make smart customer-targeted decisions
Be responsive towards customers
How does AI play its role in aviation concerning customer experiences these days?
AI plays a crucial role in helping customers in aviation to find the correct information more efficiently. It actively helps analyze customers' data and recommend services based on their browsing preferences about flights.
How does AI improve customer experience?
AI enables the power to strengthen customer engagement, encourage activities, and improve customer retention. Although not a replacement for human beings, it does help increase the efficiency of serving — like answering frequently asked questions, providing the correct information, and being available 24*7.
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Business Aviation
Article | May 12, 2021
Each year airlines begin new sustainability initiatives, experiment with biofuels, and offset their carbon emissions on selected flights; yet, sustainability should not only be a topic of discussion when an aircraft is in the air but also when it’s on the ground.
In just one year, a Boeing 777, 787, Airbus A330, and A350, burn an extra 265,000 litres of fuel due to the 1% increase in drag. As a result, a full year’s operations of such an aircraft costs US$77,600 more than during the previous year. A dirty aircraft exterior is full of microscopic patches of dust and mud that impact the airliner’s operational efficiency by creating turbulent airflow across the whole fuselage. While the problem of additional drag is not new, there are no solutions to combat it other than performing regular cleaning of the aircraft’s exterior.
Reducing drag – through cleaning – on aircraft fuselage, wings, engine cowlings, and stabilizer brings another challenge; how to remain sustainable while performing the exterior cleaning process? A popular, yet wasteful pressurized water cleaning technique requires more than 11,300 litres of water to clean one Airbus A380 aircraft and more than 9,500 litres to clean a Boeing 777. Traditionally, aircraft are cleaned four to five times per year, and with more than 48 thousand airframes in the world, the amount of water used each year is immense. As a result, the positives of clean fuselages are outweighed by the negatives of wasteful usage of expensive and environmentally important resources.
This raises a question: whether it is possible to be eco-friendly in the aviation industry when one solution brings even more challenges than benefits? While the answer may look complicated, the definite answer is yes. The use of robots in household applications has proven that robotification is an inevitable and much-needed process to achieve even more efficient operational performance.
One of the solutions to address the inefficient and time-consuming process of washing an aircraft fuselage is to employ an aircraft exterior cleaning robot. The market offerings like Nordic Dino, have been perfected and adapted to work with a wide range of aircraft fuselage types. Such robots are designed to minimize the use of water and detergent on every wash; saving more than 30% more water when compared to traditional washing methods. At the same time, built with sustainability in mind, the robots can be equipped with electric motors, further minimizing the environmental impact.
“Sustainability and eco-friendliness should not be viewed as challenges or impossible achievements in the aviation industry. By utilizing the right equipment, finding alternatives to polluting methods, and increasing efficiency at every step possible, companies could come one step closer to operational efficiency as well as sustainability targets. Our offering, Nordic Dino can reduce the use of water and detergent and can be powered by electricity, reducing carbon and nitrogen dioxide emissions. By the robotification of the cleaning process we present a solution to MROs and dedicated aircraft cleaning companies to become green.” – commented Jan Brunstedt, CEO of Aviator Robotics AB.
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