Académique Documents
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IDEAS FOR
THE AIRLINE
INDUSTRY
The Airline Deregulation Act of 1978 opened innovative: they examined the past behaviour
up the transportation system to become a of their customers to predict their income
highly competitive market. It served as a levels, creating relevant targeting strategies.
baseline to measure the quality, variety and According to each customer’s income,
price of airline services. For decades to come, American Airlines applied a predicted price
the act left all airlines in a state of crisis, as the for each and every individual. This led to a
exposure to competition led to heavy losses conversion boost, which, in turn, helped the
and conflicts with labor unions for a number company survive the crisis.
scenario. That’s because customers
of carriers. Between 1978 and the mid-2000s,
What we learn from this little history have become more fluent in different
nine major carriers,including Eastern, Midway,
anecdote is that the airline industry is online touch points,and can now
Braniff, Pan Am,Continental, America West
the vertical that adopted personalization purchase tickets from a number
Airlines,Northwest Airlines, Varig, and TWA
strategies quite early compared to other of devices. This demands further
along with a hundred other smaller airlines
verticals. Airlines Reporting Corporation data strategies for airline companies
went bankrupt or ended up liquidated. Dozens
shows that, as of March 2015, the e-ticket worldwide. The 21st century traveller
of new airlines, founded in the aftermath of
percentage of overall purchases was 99.98%. doesn’t simply crave for unique travel
the deregulation period, were also affected.
Despite the offline presence of agencies experiences, s/he also wants those
In an attempt to avoid the worst, most
and airline offices in many airports, where experiences to be delivered in a
companies begun to focus on examining the
customers can often upgrade their tickets, personalized way,seamlessly blending
behaviour of their present customers and set
for example, the travel industry is a heavily into her/his daily life. With that in
a minimum ticket price that was applied to all
digital one. Websites, apps and other digital mind, we’ve gathered the top 5 best
their customers.
media have proved to be vital for airline practices that have proven to increase
The only airline to survive the crisis was companies to(heavily) invest in. Moreover, customer loyalty and conversion rates
American Airlines, and how they managed today’s multichannel browsing culture adds for airline companies flying travel bugs
to do so was quite straight-forward yet more flavour to this challenging yet exciting around the globe.
TECHNOLOGY A great way to leverage the geofence technology is by targeting travellers on their
way to the airport, reminding them to purchase travel insurance before it’s too late,
TO IMPROVE
for example. Setting up a geofence area close to major airports can change the
game for your add-on services.
ANCILLARY
REVENUE
PROOF TO Insider’s account managers noticed that social proof yields the most prolific results
in the travel industry. Revealing the number of people who are checking out the
SPEED UP
same flight, creates a sense of urgency and a FOMO (“fear of missing out”) that are
hard to miss. This encourages customers to complete their bookings at a faster pace.
BOOKINGS
WITH AI-BACKED Carousel Push Notifications is an AI-backed,visually appealing and highly interactive
push alternative that helps you leverage new ways of delivering meaningful customer
CAROUSEL PUSH
experiences. By targeting the right segments,you can get 2x to 4x higher open rates
compared to other push alternatives. You can also track the TTR of each product
NOTIFICATIONS
and offer delivered in your push notification, while sharing multiple products or
recommendations in the same message.
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