Airlines: Improving profitability through omni-channel Customer Experience

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Infographic - Omni Channel Customer Experience in Airline Industry


Job of Airline CEOs can be compared to that of the captain of a ship tied to a light house, yet trying to sail away amidst high tides and occasional thunderstorms, not to mention the passengers trying to jump into water. Airline industry as a whole has been generating negative returns for the investors; they have been losing an average of $20 Billion year in the airline industry, according to IATA. Given a chance, Warren Buffet would have shot down Wright Brothers at Kitty Hawk [sic]. And average net margin has been just 0.1% over the last 40 years.

Perennial question is whether the structural reasons are responsible for problems in the airline industry or whether almost all airlines are badly managed. High bargaining power of suppliers and customers, coupled with availability of alternatives as well as threat of new entrants alludes to structural reasons. At the same time, Non-effective and wrongly targeted government regulations provide another dimension to problems faced by airlines. However, airlines aren’t less guilty of mismanagement either. Classical game theory pummels the industry with full force making the equilibrium difficult to attain.

While strategists offer variety of high-level approaches and ideas, it is important to acknowledge that operationalizing those strategies involve adopting some of the seemingly simplistic and contemporary ideas. One such current idea that I advocate as a promising proposition to help the airlines is Customer Experience (CE). Customer Experience helps Airlines to palliate some of the structural constraints present in the industry. Doing so automatically improves topline as well overall profitability of Airlines. Above Infographic narrates, with available data, how Customer Experience in general and Omni Channel Customer Experience in particular help Airlines improve profitability. Infographic concludes with steps to adopt Omni Channel Customer Experience model in the organization.

Amith Parameshwara
[24]7 inc.
Amith Parameshwara is an Associate Director in [24]7 Inc., company that provides innovative solutions simplifying interactions between enterprises and their customers using predictive analytics. He is responsible for delivering Customer Experience solutions in the Travel and Hospitality Vertical. He can be reached at [email protected], at in.linkedin.com/in/amithmp/ or on https://twitter.com/Analytics_Dhi

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