Description

Although airlines have access to large, diversified datasets from multiple fields, few use them adequately to respond to market trends and customer needs. Airlines need to invest in digitalization and maximize their use of the available technology. Also, cybersecurity incidents are increasing across global airlines as the growth in interconnected solutions has created a vulnerable data ecosystem, resulting in the creation of various data regulations across regions and monitoring efforts to increase sensitive data security. These factors, in addition to increased focus on data privacy globally, will intensify airlines’ spending on cybersecurity solutions. As such, the adoption of data platforms that enhance operations and commercial activities will likely escalate during the next decade.

The COVID-19 pandemic has negatively affected the global airline digitalization market. While digital solutions have increased to ensure a safe passenger experience, the pandemic has hampered operations, leading to historically low revenues and limiting airlines’ digital and information technology budgets. Passenger traffic is, however, showing signs of recovery; and as a result, airlines’ focus on Big Data analytics will pick up momentum in the short-to-medium term.

Globally, Big Data analytics has helped airlines understand their customers better, identify past trends, forecast future scenarios, and determine the technology investment required to fill the gaps. Airlines have started using Big Data analytics to analyze passenger data from social networking sites, online shopping, and other sources to determine customer preferences and accordingly customize their services to optimize ancillary revenues. Airlines from United States and Europe are at the forefront of utilizing Big Data analytics to decrease airlines’ operational costs, which has demonstrated significant impacts on revenues.

Author: Nripendra Bahadur Singh