The aviation industry is dealing with an elevated difficulty in optimizing airline revenue due to numerous factors.
There’s a fierce competition in the market along with high volatility. That’s the reason airlines must continue to look for viable alternatives such as artificial intelligence and data management strategies to maximize their revenue and at the same time present their customers with superior service.
According to a survey by Travel Daily News, in the coming three years, around 52% of airlines will be powered with AI. Moreover, Gartner research has suggested that around 89% of marketers in the aviation industry plan to improve their revenue cycle by adopting artificial intelligence development along with machine learning, and cognitive algorithms.
Although most of the airlines are interested in leveraging AI for warning and prediction systems; however there are many other ways the aviation industry can leverage the technology for improving their customer experience and revive their revenue cycle.
In order to improve and optimize the customer experience and revenue cycle of airlines, there’s a requirement of pursuing an approach that would render us with an easy and quick purchasing experience and fair pricing. Let’s take a look at some of these requirements:
Personalization of Offers
The days of random offers are long gone, and the era of personalization is on the rising. Taking the help of artificial intelligence solutions to customize offers for customers and presenting them with one at right time can do wonders. Several statistics support the benefits of personalized offers in the competitive market. The airlines reaching out to their customers with services that are specific to them can be achieved by deploying AI-enabled dynamic pricing.
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Delivering Pricing To Customers Efficiently
The seat availability and fares generated by OTA or GDS systems are old and have witnessed a lot of criticism for being stale. Such results have been a major reason for friction between the customer and the airline. Moreover, the customers lose the trust in the airline as they get frustrated while checking the flight availability and real-time pricing.
Optimization and effectiveness are two pillars of artificial intelligence solutions that help carriers in delivering the pricing efficiently. Employing an AI-powered tool can enable airlines to deliver exact pricing to sales across all the indirect and direct channels in the same capacity. It would further create a consistent sales and customer experience no matter from where the user purchases the tickets.
Tracking & Analyzing
If you’ve ever thought that flight prices are too high and airline merchants are naive to put such prices per seat, then let me tell you that the pricing strategy for flight tickets are too complex and depends on numerous factors. In fact, for coming out with an effective pricing strategy for airlines, a system must assess and analyze thousands of factors (internal and external). Moreover, these systems must consider the customers buying patterns, create segmentation and then recognize meaningful correlations to decide the pricing.
Here, AI-powered tracking and analysis may enhance the ability of airlines to look into customers buying behaviors. Consequently, they can forecast for bookings and cancellations of the customers and then present them with the right deals at the right price on a greater scale assisted with accuracy and speed.
Today’s commerce industry is moving at a breakneck speed, accordingly, it demands airlines to deliver precision and consistency to their customers across all channels and platforms. We all are now familiar with the term ‘dynamic pricing’. There was a time when static prices were framed to protect firms with margins but today these are outdated and represent lost revenue. Dynamic pricing has evolved with customers demands, as now it along with AI deliver deals which are speedy and financially sound.
As per a Forrester Research, 50% of deals are won by the vendor that responds to their customers first. By leveraging dynamic pricing and embracing artificial intelligence solutions, airline carriers can synchronize their pricing strategies and deliver the right seat prices to the right customer at the proper time.
By being the early adopters of computers, airline firms were the first to adopt the technology. Similarly, adopting artificial intelligence development for their processes and systems may put them ahead of other industries. Embracing artificial intelligence solutions may grant airlines with the ability to combine and analyze a huge number of customer events. It can further facilitate in providing solutions to customers queries in milliseconds.
So concluding the article with a laconic sentence on future of airlines with AI, I must say that ‘the technology that may enhance the revenue is here’. All the airlines must gear up for this AI-powered approach to stay ahead in the competition.