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Why airlines want to know all about you
What an airline knows about you could be more important than you think.
And what an airline gains from having you as an online customer is worth more than just the revenue it adds to a carrier’s balance sheets.
Shane Batt, Sabre Airline Solutions vice president global sales, says that while the revenue airlines receive from selling ancillary products and services is significant (airlines will make almost 44 percent more from ancillary revenues this year than in 2010), airlines also love the information they receive from their online customers.
“Airlines can gain a more fulsome insight of those customers booking online than they can if customers book through a travel agent.
“That knowledge greatly helps airlines to look after their most important customers,†says Batt.
“Being able to assign a customer value rating gives airlines the ability to alter that customer’s experience with the airline. For example, if there’s overbooking on a flight, the customer with the most value to the airline is more likely to get the last seat.â€
The information airlines collect allows them to have a more intimate experience with their passengers, Batt said.
“Virgin Australia I believe does a better job than Qantas of recognising its individual passengers, although Qantas does a good job of looking after its top tier passengers.â€
The growth of ancillary sales by airlines has lowered the average ticket price but one area that needs attention is the fulfillment of bundled services at the time of service delivery. “There are opportunities and problems here,†Batt says.
“What happens, for example, if you pre-pay for baggage and your bags go missing. Do you get a refund?
“And in the case of third party services, such as hotels and car hire, typically an airline is not responsible for fulfillment but the airline’s name is on it. It is something that has to be watched,†Batt said.
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by Ian Jarrett
Ian Jarrett
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