Airlines-Strategic Industry Challenges
Leading Airlines companies use market dynamics to create and capture new business opportunities
Competition Airlines have faced the challenge of competition with low-cost or subsidized business models by adopting some of the practices of the low-cost carriers and improving efficiency Distribution is changing because the digital world requires new ways of selling. New, powerful digital players are entering the travel market, with the target to win the customer relationship.
Digitally empowered travellers Digitally empowered travelers have ever-increasing expectations and powerful voices in social media. Airlines must change from simply providing transportation services from point A to point B to becoming a partner for travelers that provides a consistent, relevant, and personalized experience while adding new revenue streams and becoming more profitable by enhancing the product portfolio.
Data silos and outdated technology Airlines are known to be largely dependent on legacy systems with many data silos. This forms a challenge to getting a comprehensive view of real-time data across the enterprise. Integration projects can be extremely complex and expensive. This infrastructure prevents a business agility that is so needed in this fast-moving digital world.
Costly operations Capital-intensive assets, such as aircraft, need constant attention to increase performance. Airlines seek to optimize core operations processes and use the newest technology so they can offer reliable service at a competitive price. Preventing or proactively managing flight delays, caused by unforseen maintenance issues, can minimize costs and raise traveler satisfaction
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Gone are the days when the manufacturing value proposition was relatively simple: manufacturers made products and delivered them. Now the manufacturer's job does not end with delivery. Driven by ever-more demanding customers and supported by the widespread uptake of the Internet of Things (IoT) and the emerging power of machine learning and artificial intelligence, manufacturers are developing new capabilities to track huge volumes of data generated by thousands of devices and are adjusting their service depending on the circumstances.