Tight margins, heightened expectations, the
drive to deliver innovative customer experiences. Adding to the routine
challenges of driving profits and satisfying customers, consumer behavior is
rapidly evolving. They want inflight experiences to mirror the ones they have
at home, at work, and in social settings—and they want them fast.
For these reasons, it has never been more
important for airlines to stay ahead of the game—and staying ahead means
investing in new ideas and technologies.
Cloud and edge computing, IoT (Internet of
Things), big data, AI (artificial intelligence), and ML (machine learning) are
quickly making inroads in the aviation industry, promising to drive new streams
of revenue and engagement. Technology on its own is not the most effective
salve; it also takes new ways of thinking about these technologies to
understand how they can meet consumer trends and serve
airlines' needs.
There are a million-and-one potential use
cases for these technologies. Giving aircraft mechanics on-demand access to the
latest data on a plane's performance. Operational and parts supply chain data
can boost airlines' abilities to maintain their fleets. Data from passengers'
usage behavior, cabin IoT sensors, and even third-party data sources—e.g.
flight times, latest movie ratings, Twitter feeds—can be collected for greater
personalization and better product targeting.
With all the possibilities, how can an airline
know what to focus on? And what's attainable right now, versus in the next
five, 10, 20 years from now?
Let's dig in.
Empowering Airlines to Deliver Relevant Content
When it comes to inflight entertainment,
airlines not only want to understand what their passengers are watching—they
also want to predict their preferences. More importantly, they want to know
whether the content they are buying from studios is resonating with inflight
audiences.
Data analytics can already fulfill this need,
says Venkat Eswara, Director, Software Product Management at Panasonic
Avionics: "Cloud-based analytics makes it possible to customize the
content for every airplane and all routes, by doing the heavy data lifting
elsewhere." Data-driven insights are helping content managers quickly
identify and respond to the latest passenger entertainment preferences.
Data analytics can also enable airlines to get a better return on their IFEC investments, by serving truly relevant route and destination-based offers via IFE marketplaces. For example, if a large portion of passengers on a flight to Los Angeles or Orlando appears to enjoy watching animated or comic superhero movies, they might also appreciate an advertisement for discounted theme park deals or discounted ground transportation options fit for a family.
These kinds of destination-based offerings
open up new avenues for business partnerships and customer referral systems
that airlines have been missing out on to date.
The Inflight Map, Only Much Better
Cloud-enabled data services are also enabling
the development of aviation-specific use cases at a much faster rate than
previously possible. Take, for instance, the humble inflight map.
Traditionally inflight maps feature aircraft speed, outside
temperature, a little airplane icon traveling in "real time" over the
set route—and that's pretty much it. They were long overdue for an overhaul.
Panasonic made ArcTM to deliver richer, more
interesting and detailed information to passengers, such as up-to-date flight
connections information.
Data-enabled inflight maps and other apps also
provide airlines with an opportunity to show passengers destination-based
services that are tailored to their interests, such as ground transportation
options, restaurant recommendations, special tour promotions, and hotel
discounts that are actually relevant to the passenger.
These personalization capabilities are
becoming more critical in an industry with contracting margins. In a
commission- or referral fee-based partnership, it's in an airline's best
interest to make sure that these services are as accurately customized as
possible, says Eswara.
"When people step inside a plane, it's an
ideal time for them to do their final planning or last-minute changes.
Leveraging passenger data to then market destination-based services is a major
ancillary revenue opportunity for airlines," explains Eswara.
Having data-enabled IFEC systems gives
airlines the flexibility to tailor content to a specific person. It also, in
some contexts, can even give them insight into what the person is clicking on
via the IFE/PED screen, which can in turn guide what types of products and
services are advertised or recommended next.
"Cloud-based analytics makes it possible to customize the content for every airplane and all routes, by doing the heavy data lifting elsewhere"
Venkat Eswara, Director, Software Product Management at Panasonic Avionics.
Onboard Retail Experiences Passengers Want
Many airlines have abandoned their inflight duty-free programs, but it's not because people don't want to buy items on board a flight. It's because they don't want to buy watches and perfumes—usually very personal purchases—inside a plane from a catalog, then have to travel with said item.
That doesn't mean they're against buying
anything at all inflight, though. As we can see, people are willing to buy
certain items—say, food and drinks—inflight. Fine-tuning those options has the
opportunity to save vast amounts of food from landfill and reduce onboard
weight, according to the International Air Transport Association. What gains could be seen from smarter overall approaches to
retailing?
Data-enabled personalization and trends for
targeted offers and campaigns are a key differentiator for airlines' ancillary
revenues. Social trends can uncover what kinds of products people are most
likely to buy, and offer them multiple options for pickup and delivery. In
turn, this helps airlines vastly improve their sales appeal. For instance,
passengers may want to buy a product, select a delivery location based on their
travel plans, or purchase digital products such as destination-based offers.
Cloud-based processing data on customers,
routes, and sales trends—plus predictive analytics—help airlines create
targeted offers toward passengers at every stage of their journey and enable
them to be far more flexible in terms of the items they stock on each flight,
and transition to a full digital retail experience.
Long-Haul Travel, Minus the Jet Lag
As flights get longer and longer, passenger
health and wellness are being pushed farther to the front of airline leaders'
minds. How can passengers stuck inside a plane for 20 hours emerge from their
flight feeling refreshed and ready to take on their day?
Eswara says research shows that improved sleep
quality on long-haul flights can positively impact customer satisfaction and,
importantly, reduce passenger stress. Personal data could be used to create
personalized sleep schedules recommended to passengers via seatback screen or
PED. The schedules can "suggest optimal times for sleeping, eating and
drinking throughout a long-haul flight," says Eswara. That's on top of the
other health and wellness offerings that IFEC systems are capable of delivering.
When it comes to the potential of data analytics, is the sky the limit? The answer is increasingly a resounding "yes." The growing capabilities of the cloud, IoT, big data, and AI, combined with the speeds of modern satellite-based inflight connectivity, together are a compelling value proposition for airlines—one that offers an enhanced inflight experience, increases customer loyalty, and adds significant value to passengers.
Learn more about Panasonic Avionics' NEXT Insights solution and how it can help airlines identify and rapidly respond to industry trends.