USE OF DATA ANALYSIS IN AIRLINES TO IMPROVE DECISION MAKING

Abstract

Like many other industries, Airlines have also started to use data analytics for improved decision making. Data Analysis is important in the Airline Industry as the demand is unpredictable and inventory is perishable, as once the flight takes off, the airline loses the opportunity of generating any additional revenue. Also, the advantage with Airline sector is that almost all the data related to airlines is in public domain however the difficulty lies in the fact that if the companies do not understand the requirements and get forecasts right, it is impossible to sell the inventory even if sold for free. With the increasing focus on analytics, Artificial Intelligence and Internet of Things, airlines are operating efficiently and are using technology to the fullest to achieve better operational efficiency. The paper illustrates with examples and scenarios as to how data is being analysed to increase revenue and decrease costs. Airlines used data analysis for discounted seat allocation, Internet marketing, routing, screen human resources, dynamic pricing etc. Over a period of time airlines are able to predict the behaviour of the consumer and habits like possibility of cancellation, rescheduling etc. This allows airlines to maximise revenue by overbooking. The paper shall also explain how usage of data analytics have transformed the so called difficult airline business. The paper shall also touch on how yield management has helped American Airlines and Customer Service analysis has helped Jet Blue transform their businesses.