Question

Data analytics is becoming a hot topic in the IT field. Determine how organisations such as Air Botswana can use Big Data in times of disruption to defeat market revolutionaries. Include references. (30marks)

Answer 1

answer-

Big data is the new trending field in IT which has provided many benefits to other companies but now it can provide many advantages to Air Botswana .This Company's most of revenue comes from Customer and strategies to cut down its business cost so The use of Big data can help in collecting data from its customers and use that data to make business decisions like providing attractive offers to customers, improve customer service at the time of flight , create pricing strategy to tackle competition in the market.

lets see how Air Botswana can use Big Data in times of disruption to defeat market revolutionaries -

Giving out personalized offers

Airlines are constantly competing with one another to see a smile on their customer’s faces. There is no better way to achieve this than to shower you, the customer, with customized offers. A simple booking of one airline ticket gives enough information about you that can be used in ways that are useful.

The industry is using big data to bring in a change in the customer experience department. For example, recently United Airlines, made a switch from the age old ‘collect and analyze’ method to a smarter ‘collect, detect, act’ approach.

This system analyses around 150 variables in each customer’s profile, right from previous travel details to your purchases and priorities. The details are analyzed in a fraction of a second and custom made offers are presented to you. This approach has shot up United Airlines’ annual revenue by 15% so this can help Air Botswana too.

Improved marketing efforts:

After presenting you with personalized offers, the next big way airlines are using big data is for improving their marketing efforts. Airlines have a more or less detailed data of each of their customers. They work on this data and come up with special offers for the customers.

When you have a special offer presented according to your preferences and priorities, the natural tendency is to go for it. When you are in favor of the particular airline, it becomes easier for them to know how the customer thinks and behaves. This in turn assists in the future marketing strategies.

Smart and safe Flights:

During an aerial journey, tons of data are generated every hour. On an average, a 6 hour flight from one country to another collects about 240 terabytes of data from the plane. If this data is inspected and analysed, it goes a long way in improving the safety of the flight.

Pricing and Network Strategies

Many airlines go further than a basic data collection and analysis. They can analyze big data such as tracking traveler’s purchase activity, while tracking travel demand patterns from across the globe. If an airline sees the demand for flights from A to B going up, they can alter prices accordingly. They can also determine which customer segments are price sensitive and measure each customer segment’s price range for a given route.

Big Data analytics can take historical information and predicts demands up to a year in advance. It also helps on the decisions on opening new routes, schedule changes and codeshare alliances.

so, with use Of big Data in its business Air Botswana can achieve advantage over its competitors in market and attract more customers to its customer base.

ref-

Camilla Hodgson and Patti Waldmeir,May 8 2018 ,"How airlines aim to use big data to boost profits-Technology provides carriers with treasure trove of information to optimise customer service"

ida Jessie Sagina, Dec 13, 2017 ,"Big Data in aviation – Six trending technologies"