Addressing Changing Market Dynamics Using Advanced Market Intelligence
Today’s business environment requires airlines to assess large amounts of data to understand their own and competitors’ markets – data that is scattered across multiple sources and hard to procure. New technology offers a set of web-based solutions that provides commercial-planning departments with worldwide market-data sets and advanced visualization and analytic capabilities to increase productivity and market insights.
Today, airlines must have access to large amounts of data to understand the markets they serve, as well as those of their competitors. This level of data can be hard to acquire and is generally spread across various sources. An airline’s commercial-planning department needs access to multiple types of market data, such as flown traffic, advanced bookings and schedules, from a single source.
Airlines incorporate this data into their business strategy in a variety of ways, including:
- Tracking current performance and potential market size;
- Identifying new revenue opportunities through network expansion, codeshare agreements and agency performance;
- Segmenting passenger travel behavior in business and leisure markets;
- Gaining insight into competitor’s performance.
To best monitor competitive performance, airlines need to understand variables such as markets served, schedules and yield, as well as how these variables change in response to a market event, for example, when a new carrier enters a market.
Is the introduction of a new route stimulating new demand in a market, or is it simply causing a shift in airline share?
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