Aviation industry is one of the most competitive industries and the overall revenue has increased from 322 billion USD in 2003 to ~ 865 billion USD in 2019. In this landscape, more and more airlines are increasingly using artificial intelligence and analytics to enhance customer satisfaction, improve operational efficiency, AI enabled MRO strategies, etc.
Some of the potential use cases of Artificial Intelligence and Analytics in the aviation and travel industry are as follows:
- Customer 360 Analysis for Enhanced Customer Services can be used for giving customers an enhanced experience is extremely critical today, given the fact that there are endless flying options to the end customer. Behavior and past purchase history tracing can be used for making highly personalized offers to customers – thus increasing retention and lifetime value
- Predictive maintenance and reliability analysis will improve the overall operational efficiency of the airlines. Classification algorithms can be further applied on the fault sequences to segregate fault codes to engine types, and other attributes. Feeding data into analytics engines in near real-time will allow airlines to do more optimal predictive maintenance, which will increase reliability, lower costs, and also allow them to build more advanced flying machines.
- Machine learning can be leveraged to optimize flight routes thus lowering operational cost and enhancing customer satisfaction
- Fraud analytics based on historical purchase patterns can be used to identify suspicious credit card transactions – resulting in increased saving for the airline and travel industry
- Sentiment analysis to identify the pulse of the customers – assess their satisfaction level and take pro-active measures to reduce churn propensity.
- Dynamic pricing and pricing optimization can be used to maximize the sales revenue and ensure at the same time that companies are not losing their perishable inventory (“seats”)
- Intelligent flight delay prediction algorithms that factor in weather conditions, related delays, possible gate congestion, etc.
- Crew scheduling algorithms to maximize crew time and also increase employee retention.
AI enabled technologies are bringing some significant changes in the way the aviation industry is operating today. The leading world airline service providers are now using artificial intelligence technologies to deliver personalized traveling experience to their customers, airline operations planning, better fleet and crew management, more effective flight scheduling, more competitive pricing. In future artificial intelligence will continue playing more critical roles in the aviation and travel industry, and the companies that leverage AI in their business planning will be the clear market winners.