Take a look at this presentation to understand how airlines are losing revenue by
only focusing on fares and why personalization of experiences is the way forward.
3. Our Speakers Today
Principal, Revenue Optimization
Tom Bacon Consulting, LLC
Chief Product Officer
RateGain
Tom Bacon Dr. Anand Medepalli
4. (Cooperation+ Love x community building )
Survival tactics
A 20,000 years old equation
Freytag’s Structure of Storytelling
Storytelling : The age-old formula driving human evolution
5. 2083333
Snap chat pictures
1388999
GIFs served
49890
Instagram
473400
Tweets
4333560
Video Views
Source Statista
Stories created in an Internet Minute
Today’s travelers crave stories in micro-moments
6. For them, every Travel is a Story!
Source AARP Traveler trends 2018
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4
Travels to seek experiences and transformation
Spends all of their vacation time in a year
Spends more than GenX and Boomers on each travel
Bucket Lists and Impulse Travel remain priorities
7. Passenger
Expectations
Air Travel
Experience
• Tracking Baggage
• Random Security Check
• Standard Seats
• Standard Fares
• Small Meals
• Limited Engagement
Options
• Happiness
• New Culture
• Nervousness
• Sadness
• Self-Exploration
• Urgent Assignments
• New Beginning
Satisfaction with Last Air-Travel Experience
North AsiaLatin America North AmericaMiddle EastAsia PacificAfrica
40% 47% 59% 47% 56% 56%
But a Traveler perceives his story to be divergent from an Airline's story
Source: IATA Global Passenger Survey 2017
8. Source: Digital transformation initiative: aviation, travel and tourism industry. WEF, January 2017.
Potential to unlock approximately $1 trillion in value for the industry by 2025.
Enabling a Traveler’s story will impact both your business and the society
9. Ancillary – Billed as “personalized”;Critical to Financial Health
Theory: Pay only for the services you want!
$88.2
Billion
Airline Ancillary Revenue
(Ideaworks)
$38.0 Billion
Airline Profits (IATA)
Global Airline Performance
2017
11. Ancillary must add Value!
True Personalization adds value; drives
increased Customer
satisfaction/Engagement – the “story”
7 Signs airlines need to take a step back with ancillary
Customers can’t book you
Customers don’t like you
Customers don’t know what they’re buying
Customers can’t find what they want
Customers are overwhelmed with choice
Customers perceive nickel-diming
Customers are surprised what they get
12. Data Requirements: More than Personalized
Micro-segmentation
Contextual
Two-way Dialogue
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18. How Much do you Estimate Better Customized Offer Creation Will Increase Your Airline's
Total Passenger Revenue ?
Source: Skift Research: A new formula for Airline Success
19. Crawl – Walk – Run – Fly!
Embrace a test-and-learn culture!s
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3
Industry is just crawling…
But we’ve got to begin somewhere!
Now is the time
20. Charting your Personalization Path forward
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3
Establish traveler discovery and micro-segmentation
Create a digital data foundation
Turn your Data into an Asset
23. Market
Pricing
Bookings
SNEW
Airlines
Capacity &
Traffic
Customer
Feedback
Data Types
Search data
Customer
Reviews
Crawlers
Res Systems
External APIs
/ SFTP
Search
OAG / WEF
Data Collection
Historical
Data
Streaming
Data
Data Lake
Outcome
Scenarios
Cross-data
Insights
Data Cleansing &
Validation
Data Aggregation
Analytics Ready
Data
Marketing
• Traveler profiling
• Demand forecasting
• Digital marketing spend optimization
• Promotions planning & pricing
• Sentiment scoring & pricing
Data
Deltas
MachineLearningFramework
Revenue Management
• Demand forecasting
• Pricing optimization
• Automatic rate updates
• Smart alerts
Data Services
• Smart search
• Smart sampling
• Price guidance
• Quality control
Create a digital data foundation
Data
Views
Data
• Rate shopping
• SNEW
• Airline capacity & traffic
• Search
• Macro-economic indicators
24. Being Traveler Centric requires a paradigm shift in your approach
• Batch-driven
• Static-rules
based
• Limited data
inputs with
latency
• Silo
organizational
disciplines
• Self-learning
and evolving
• Automated
response
• Risk-aware
• Full
organizational
visibility and
control
• Exponential
growth in data
(SNEW, IOT)
• Always-on
• Iterative batch
planning
accounting for
execution
realities
• Flexible and
responsive
• Limited data
inputs with
reduced latency
• Silo
organizational
disciplines
• Predictive
planning based
on real-time
events
• Flexible and
responsive
• Increased data
use (SNEW, IOT)
• More connected
organizational
disciplines, but
not fully
Reactive Responsive Synchronized CognitiveProactive
• Predictive
planning based
on real-time
events
• Flexible and
responsive
• Increased data
use (SNEW, IOT)
• Full
organizational
visibility with
inter-connected
insights
Walk Run FlyCrawl
25.
26. WEBSITE
PERSONALIZATION:
Market Price Comparison
Compare price for other
airlines for your dates:
Compare price across
other travel partners for
your dates:
.
INR 54,000
INR 55,000
INR 57,000
INR 51,500
INR 52,000
INR 56,000
INR 57,500
INR 56,000
COMPARE
* (CHEAPER RATES 3 DAYS AHEAD)
28. WEBSITE PERSONALIZATION :
And oh, look at the Events & Weather Forecasts
Compare price for other
airlines for your dates:
Compare price across
other travel partners for
your dates:
.
INR 54,000
INR 55,000
INR 57,000
INR 51,500
INR 52,000
INR 56,000
INR 57,500
INR 56,000
COMPARE
WEATHER FORECAST
EVENTS
* (CHEAPER RATES 3 DAYS AHEAD)
29. WEBSITE PERSONALIZATION :
And here is a Promotion for you!
Compare price for other
airlines for your dates:
Compare price across
other travel partners for
your dates:
.
INR 54,000
INR 55,000
INR 57,000
INR 51,500
INR 52,000
INR 56,000
INR 57,500
INR 56,000
COMPARE
WEATHER FORECAST
EVENTS
EFFECTIVE PRICE (after discount): INR 39,246
* (CHEAPER RATES 3 DAYS AHEAD)
32. SMS MARKETING
Send real time SMS alerts
personalized on the basis of user
booking history and real time
data from RateGain’s APIs.
Include offers for new customers
and retarget those who left
without booking by showing
them that Singapore airlines is
the cheapest for those dates &
upcoming events in the
destination location.
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We work in an industry which creates curious travelers, experiences and stories that you can tell over ages. This photo depicts the image we have in our mind about travel and experiences
We work in an industry which creates curious travelers, experiences and stories that you can tell over ages. This photo depicts the image we have in our mind about travel and experiences
1- Change icons
2- Cancelation propensity
Client can use tools such as ‘Adroll’, ‘Adacado’, ‘Google DoubleClick Bid Manager’ and ‘MediaMath’ for dynamic display advertising. Banner HTML will have placeholders to accommodate real time data from real time RateGain’s API. Singapore Airline can show pricing, events and weather data in these promotional banners
Singapore Airlines can use any marketing automation platform to send dynamic sms – Eloqua, Pardot etc.