Planes have fulfilled manís desire to fly. Airlines organized and institutionalized its widespread fulfillment. The industry has played a pivotal role in not only the physical movement of people and ideas but also cultural osmosis across the world.
In keeping with its global nature, the industry is particularly vulnerable to global occurrences be it an epidemic, natural disaster or terrorist attack. Heavily dependent on the propensity of people to travel, the recent financial recession took a toll on it. However, according to industry analysts, the recovery of the industry from the financial crisis has been faster than anticipated mainly due to strengthening economies, improving demand, effective cost cutting, improved efficiencies backed by the massive fiscal and monetary stimulus measures taken by governments. Airlines are expected to return a $ 2.5 billion profit in 2010. But with only 0.5% margin, airlines are still a long way to go from recovering their 7-8% cost of capital. Airlines have every reason to bring in cost-efficiency into its operations.
Airlines are passenger-centric organizations and providing with good experience is a key success factor. Customer service can be delivered efficiently and cost effectively while adding to brand value. Marketing is vital to the future sustainability of the industry. The idea is to create sustainable demand. Commercial airlines know that a strong passenger mix guarantees a healthy demand throughout the year, without any over-reliance on any one passenger type. However, intense competition continues to exert downward pressure on yields.
The industry may be considered the cradle of structured, systematic and technology driven loyalty programs. Ironically the success of FFPs resulted in its percolation among industry players and its eventual commoditization.
FFPs have a role in helping airlines meet many of their contemporary needs. Thus FFPs running on legacy or bespoke systems are being upgraded to new Gen loyalty systems like Oracle Siebel.
ITC Infotech is proud to be a pioneer in enterprise loyalty implementation. Please read our case studies to understand how we helped them leverage Siebel Loyalty Solution.
If you would like us to undertake a study of your company and recommend a suitable loyalty solution, please feel free to write to us at firstname.lastname@example.org.
Maximize customer retention,
especially high value customers,
to increase revenues