Control, speed, connectivity, convenience and mobility needs to be wrapped into a new value proposition, asserts Ricardo V. Pilon.
4th November, 2021
A key component in air travel is the onboard experience. Considering that a core aspect of retailing is offering a personalized experience, how can airlines gear up for the same? How to ensure each and every passenger gets closer to enjoying the cuisine, entertainment options, shopping or even their sleep without any interruption? And above all, how can they be in control?
Ricardo V. Pilon, an experienced industry executive and a specialist in in the application of ML and AI, underlined that customers want control using their personal device no matter where, so also inflight.
Pilon, who presented during Ai’s Ancillary Merchandising Conference: Revenue Management and Inflight Product, said customers are increasingly attracted to opportunities to control their own experiences by being able to personalize how they experience their new adventure discovery as well as how to tailor their journey to their needs, in their specific context every day. ”They want to do this through their own smartphone, even use it on the plane to control the content and experience of the IFE,” he said. Pilon added – the in-seat IFE has to become a platform as well as an extension for and of the smartphone. The content displayed on the IFE can be modified with content streamed through the customer’s device, e.g. Netflix (through Bluetooth) but vice-versa, the IFE can also connect to the smartphones to push relevant products, upgrades, trip-related services, thrills, experiences or retail promotions (incl. duty-free) that make sense in the context that day.
Pilon said passengers want the airline to recognize them and acknowledge ahead of time that their preferences change with context (distance flown, day/night time flight, traveling alone, etc.).
Challenges
“This means that control, speed, connectivity, convenience and mobility needs to be wrapped into a new value proposition such as an enhanced airline app that becomes the experience and self-control platform that allows choice, planning, and purchasing. More content and the ability for customers to manage all trip- and lifestyle-related reservations and experiences through this convenience hub also means time savings,” he said. “The biggest challenge we have in designing this, is that – is to decide how we can push and display so much variety in content, offers, and advertising to the customer on their smartphone that it is important to stay relevant, still convenient, and not overwhelming and off-putting. But we’re clearly moving into this space.”
Also, convenience cannot only add to brand value and CX; it needs to be monetized, acknowledged Pilon.
“So, to put this in commercial strategy context, this platform finally allows the airlines to work on integrating, converging rather, all data and insights from the various silos, such as loyalty, marketing, RES, ancillary, now onboard as well as RM into a cohesive and unified data lake that will allow the application of ML and automation through AI to drive data-driven products that are relevant on the ground as well as in the airport, or onboard, or at destination.”
“Think of pre-populated seat preferences, Spotify playlists, and recommender-system driven retailing propositions based on deep learning of personal profiles, search and purchasing behavior, and trip purpose. AI can help us deliver these recommendations without duplicate effort or overlaps across commercial airline silos,” recommended Pilon.
Today, airline retailing is at its infancy, but as Pilon points out, market and consumer trends indicate that differentiation will be through airline app or superapps, requiring inter-operable applications and systems that, by default, necessitate embedding machine learning in digital processes that will be automated through artificial intelligence.
By Ritesh Gupta
Ai Team
