Over recent years there has been a growing concern in business circles about the future of business intelligence, especially as it applies to the airline industry. Increasing customer competition, tighter competition from low-cost airlines, and the fact that many long-haul customers have become more price conscious, all result in a more competitive environment for the airline industry. This competitive environment also includes smaller, regional airlines that are fighting to win over customers in the smaller cities that they service. The pressure from customers has also resulted in tighter regulations that are affecting the airline industry in general.
As these factors continue to affect the competitiveness of the airline industry, how would the airline industry use business intelligence to cope?
Businesses are always looking to identify trends that will affect their business in the future. With so much competition, businesses are constantly looking for ways to differentiate themselves from the competition. Using customer data to discover emerging trends is one way that businesses can use this type of analysis to provide insight into emerging trends. Business intelligence analytics provides a unique and valuable resource that should be considered when formulating strategies for the future of the airline industry.
How would the airline industry use business intelligence analytics to identify customer demand?
In theory, if a business owner can determine which customers are likely to be in demand in the near future, they could implement strategies to ensure that they get those customers. By using historical customer data, business owners can determine how they fare against similar customers in the past, allowing them to adjust their marketing campaigns to ensure that they are offering an excellent product or service relative to the competition. Another application is to ensure that they are meeting their legal obligations. In many ways, analyzing the demand side of the business would be an extension of customer service management (CMS).
Of course, business intelligence does not only apply to the airline industry. Some companies make use of it in other industries as well. Companies such as chip manufacturers, software companies, and entertainment conglomerates can all take advantage of what it has to offer. This type of analysis allows companies to identify trends and gaps in their market that they can address through innovative methods. Some of these gaps may not have any apparent explanation, but companies that employ this methodology can identify potential problems before they become severe enough to pose a risk to the company’s business model.
The truth is that there are many applications for this type of analysis. While the traditional customer service analysis has always been important, more recent applications of business intelligence tools have given business managers new ways of thinking about their industry. Customers are no longer just customers; they are competitors, employees, and even parents. By understanding where your customers are within the overall structure of your business and its various components, you can gain a deeper understanding of how to better serve them.
With so many different applications, one might wonder where the strategic analyst fits into this picture. In reality, analysts are responsible for looking at every facet of the airline industry. They gather information on trends and gaps in supply and demand, but they also try to understand how each of these components interrelate. Ultimately, analysts conduct thorough risk assessments and make recommendations for addressing any given situation. They help businesses develop and maintain effective plans for their operations, while assisting them in the implementation of those plans.