The airline industry is one of the most exciting industries, fascinating people worldwide. However, the industry has been characterized as being overly complex, as it must follow numerous international regulations, and its ability to function properly and economically is tied to weather conditions, oil prices, and the availability of ground infrastructure. For decades, the industry has suffered under enormous cost pressures, as market-entry barriers are relatively low, and new competitors surface continuously. Therefore, many airlines are outsourcing parts of their value chain. However, outsourcing’s pros and cons should be weighed carefully. Another relevant area is customer loyalty: Airlines must understand that loyal customers are the most precious asset, and they expect consistent service delivery across touchpoints, which most airlines fail to deliver. However, thanks to digitalization, airlines can enhance their services through even greater customization based on analysis of customer data.
In this section, read about outsourcing’s challenges, the importance of customer loyalty, and how to use customer data as an asset to increase your revenue through customized service offerings.