Aircraft and carriers: big data to recover from covid
Information from social media, credit cards and cell phones to anticipate trends
During the pandemic US air carrier debts grew to levels that currently alarm lenders. Reducing them will require faster revenue growth than ever before, but it may be risky to try to convince travelers to fly by focusing on low ticket prices. Typically, airlines make these choices by cross-referencing traffic analysis from the previous year and with current air travel demand. However, today this information is almost meaningless, while big data is the one that could really help get the numbers right.
Currently, airlines are moving blindly by still using old data according to some airline consultants. For example, ticket prices continue to rise close to the date of travel, yet users no longer book months in advance due to the high risk of cancellations or fear of last-minute travel restrictions. On this point, low-cost airlines have continued to gain an advantage over their competitors, as their main objective is to fill the aircraft, so low-cost airlines are more dependent on real-time bookings.
However, today there are new alternative sources of information (social media, credit card transitions, cell phone data, communication platforms) that could allow airlines to get ahead of the curve on certain consumer trends, allowing them to raise prices or take advantage of specific routes that have become more popular or have the potential to become so.
AVIONEWS - World Aeronautical Press Agency