How would airline industry use business intelligence

The estimated market of air travel is in the billions. With so much at risk, an airline’s route and destination decisions may have a significant influence on a company’s bottom line. A business may opt to grow into a new location, increase routes, or save expenses by servicing more clients with fewer planes. The airline business is known across the world for its razor-thin profit margins and fierce rivalry. If one mistake is made, the entire enterprise may implode. As a result, the airline industry has concluded that leveraging data is the only way to reduce costs and enhance customer happiness. As a result, the aviation sector processes enormous volumes of data every day and this blog is to explain how would the airline industry use business intelligence.

Handling this data is no simple task, but there are technologies available to assist. Business intelligence (BI) tools are one of the most well-known of these technologies. With the use of business analytics, these technologies assist the airline sector in exploring creative methods to improve their business ideas and alter the way they operate. Having a consistent method of capturing and storing data entails combining all data into a single pool that can be modified and searched to discover problems, uncover trends, and anticipate future results.

Why is the Airline Industry always struggling?

Why the airline industry is struggling

Following are the reasons why the airline industry keeps struggling always

1. High Fixed and Variable Costs

Airlines must continue to make substantial leases or loan repayments regardless of business circumstances since aircraft are highly expensive pieces of equipment. Large commercial airplanes have a life expectancy of 25 to 30 years. Payroll expenses are another element of relatively constant costs that must be spent month after month since airlines require huge labor teams to conduct their complicated operations. Oil price volatility is another issue that airlines must cope with. After all this, there’s also security to take care which ultimately increases the expenses.

2. A bad reputation in the market for poor services

The notion that flying is a nightmare makes it harder for airlines to charge the higher rates required to recoup their losses. Long lineups at check-in owing to security procedures, tight seating, difficult scheduling, and bad service are just a few of the airline passengers’ concerns.

 3. They have to keep running despite being in losses

Market players would ultimately push a sector that has been known to be unprofitable for decades to combine and simplify in an attempt to discover a better way to conduct business. Not so in the airline sector, where this basic business principle does not appear to work.

Business Analytics

Business Analytics

Explicitly put, they are advanced tools and procedures that assist in the making of forecasts, generating suggestions, and providing deeper insights into the organization, allowing the business owner to make strategic data-driven decisions. These sophisticated methods give a complete view of day-to-day operations, consumer behavior, and so on. Furthermore, these technologies rely on machines for analysis, which helps save time and resources, resulting in increased revenues and lower expenses. From the standpoint of business intelligence, data related to hospitality may take numerous forms and be helpful in a variety of ways. Personnel in the airline industry can substantially benefit from a system that can manage large amounts of data quickly and effectively.

The Benefits of Using Business Intelligence in the Airline Industry

Benefits of Business Intelligence in Airline Industry

The initial issue for airline and hotel business intelligence analysts is to have a system that can integrate huge and diverse information into a single version of the truth, which can then be analyzed and broken down to extract relevant insights. It should update on a frequent and automated basis to standardize data entry and maintain insights and reporting current and relevant.

Anything which provides an advantage in the airline industry should be exploited and so is the case with Business Analytics:

  • Managerial Assistance: The airline business is always evolving. There are a number of elements that make running an airline challenging. Airlines can assist mitigate the effect of these developments by using business intelligence to make timely and error-free choices.
  • Estimating the appropriate price: Business intelligence may assist your airline in determining the ideal daily flight pricing point. It can quickly analyze patterns and compare data from many sources to provide the most competitive rates. It also allows you to obtain a bird’s eye perspective of the present situation and help you determine the appropriate pricing that strikes the perfect balance between what the client is ready to pay and profit margins. As a result, there is no need to physically update prices on a daily basis, saving time and labor that can be put to better use.
  • Helps in making your airline unique: Differentiating oneself from others who offer a comparable product/experience is crucial for success, especially in a crowded market like aviation. Advanced business intelligence technologies will help your airline stand out. Airlines can use these technologies to develop customer profiles that are specific to the customer’s demands. Focusing on the cash flow and profits is what everyone does leaving the aspect of customer satisfaction. Business analytics could help figure out customer choices with the help of numbers which would ultimately contribute to profits.

How to implement business intelligence in the industry?

You must have a vision. You should make a list of objectives that will assist you to clarify exactly what you want to accomplish with your analytics. Next would be to have a complete strategy in place to assist you in realizing your goal. Finally, you must establish a set of Key Performance Indicators to aid in the evaluation of your business analytics progress. This will not only assist you in client retention and acquisition but will also streamline your processes.


Thus the use of business intelligence in the airline industry has been discussed. The figures business analytics provides could help shape up the services to be provided making them precise and unique to the customers. This could help move the industry players from the point of sustenance to the point of making profits.

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