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Tuesday, January 31, 2023

How Would The Airline Industry Use Business Intelligence?

How Would The Airline Industry Use Business Intelligence?

As we all know, today’s business environment is increasingly competitive and global. At the same time, there is a growing need for businesses to streamline operations and gain access to relevant information at the right time. That’s where the airline industry reaps the benefits of business intelligence. 

But one of the least understood industries when it comes to Business Intelligence is the airline industry. Almost everyone has flown on an airplane but very few can say that they understand how the business side of it all works. The airline industry is going through a major shift and this blog will touch on how Business Intelligence can help.

What is Business intelligence?

Business intelligence is something that is used in almost every industry today. It is a powerful tool that helps companies make better, faster decisions. This can be anything from stock market analytics to business process improvement, to even a big data machine learning model that can predict customer behavior. Business intelligence is a trendy term that is often thrown around, but why do airlines need business intelligence?

Big data analytics and Business Intelligence

Big data analytics is all about making sense out of data that comes in large volumes and varieties. That may sound simple but it’s actually a very complex process. Big data analytics is often used in the airline industry. Data is collected from all sorts of different sources and sensors and it is stored in different locations. It is processed in real-time and stored in various formats.

Here you must know that the airline industry is a $550 billion industry. It is a highly competitive business with a lot of data going in and out. For example, an airline has to keep a lookout on the number of customers traveling on its flights, the number of seats they are selling, the number of people who are going to be traveling on a given day, and how much the tickets will cost. It has to keep watch over all this data, process it, and use it to make business decisions. It processes a lot of data and collects it from a lot of sources.

It is a highly competitive industry. If you miss out on a flight or if your flight is delayed, you are sure to find another airline that will give you a seat. 

How Would The Airline Industry Use Business Intelligence?

So it is important for the airlines to have a good system that can process data in a quick manner and Business Intelligence helps in achieving this goal. 

BI tools for the airline industry

Some of the best conventional and general (Business Intelligence) BI tools which can be used within the airline industry include:

  • Birst Software
  • SAP Business Objects
  • Tableau Business Intelligence
  • IBM Cognos Business Intelligence Software
  • Microsoft Sharepoint Business Intelligence

Some of the best Aviation specific BI tools and processing systems include:

  • Teradata Airline Decisions
  • ARC’s Airline Business Intelligence
  • ATA Business Intelligence and Statistics Services

How Would The Airline Industry Use Business Intelligence?

A worldwide study conducted by the University of Surrey showed that the airline industry has the highest rate of business intelligence use. This makes sense since the airline industry has an extremely high level of complexity, which is more difficult to manage with manual processes. Here we will highlight how the airline industry uses business intelligence to manage this complexity.

Find the perfect price point

With business intelligence software, you will be able to easily track the prices of other airlines that go back and forth in a day. The insight that you get will help you set just the right price for flights for your airline so that it balances out what customers are willing to pay yet still give you a profit.

Help with management

The airline industry receives feedback from passengers and how they compare different airlines to each other. Using business intelligence ensures that changes are made to the best interests of its customers at the earliest possible time before any such issues become too serious. Airlines receive updates from their various departments and make decisions based on that information.

Offering a personalized experience

The customer is always right, and they know it! This adage isn’t only true in the retail industry where customers can be mean or rude to poor employees. Business intelligence is thus one major aspect that any organization needs insights into to understand how their customers think and make decisions on a regular basis. 

The data collected from this tool allows for more informed decisions which are tailored towards customer welfare, better customer retention, and higher profits for the firm in question.

Making your airline standout

Business intelligence tools are used by over 90% of large and successful businesses. This technology is generally used to analyze information, disseminate that information in a user-friendly manner, create real-time performance dashboards, and visualize critical data and business trends in a variety of different useful ways.


How Would The Airline Industry Use Business Intelligence? Business intelligence has become a key function in any organization and the airline industry is no exception. Airlines use BI to analyze critical information and make important decisions. This is a very competitive industry so even the smallest advantage can lead to huge profits. BI has many different applications in the airline industry.

Also Read:
What Type of Business Organization Generates the Most Total Sales

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