CASE STUDY

Increase Profitability via Intelligent
Product Pairing & Cross-Sell at point-of-sale

Asia is home to nine of the world’s ten most popular flights, and globally, budget airlines carried more than 950 million passengers last year, which is about 28 percent of all air travelers.

That brings both unprecedented opportunities and challenges, to how airlines, service providers, and ground operators respond in this competitive landscape.

Read how qbo insights helps a leading budget carrier that transports over 10 million passengers a year unlock hidden opportunities buried deep in their data to design new products, devise product pairing/bundling, and deliver greater profitability on inflight sales.

Goals

Product Design and Launch – How can we devise new products and product pairings based on a data-driven understanding of passenger tastes & preferences?

Better Inventory Management – How can we manage inventory better to minimize wastage and manage supply chain better?

Hyper-targeting with personalized offers – How to we increase profitability by offering up-sell / x-sell of the right product at the right time?

THE CHALLENGE

Driving buy-on-board transactions and revenue through intelligent recommendations at point-of-sale

There are hundreds of meals, beverages, and snacks on offer across routes and flights, constrained by supply chains, availability, sectors, and purchase patterns of customers. Product planners need to from gut-feel to data-driven approaches to manage inventory and fulfillment while driving greater product penetration through in-flight sales channels.

Product Menu, Product Pairing and Combos: Different routes carry different types of passengers – singles, couples, groups, business/leisure travelers, etc. These customers tend to purchase meals and beverages appropriate to their reason for travel, as well as the time of day e.g. coffee in the morning, perhaps light meals for dinner. As such, a carrier has to ensure that it has the right set of products on offer in line with the ever-changing tastes of customers on board, before taking off for its destination.

Inventory Management Do people purchase and endless stream of snacks? or do they pair a snack with a beverage? if so, what are these product combinations? how do they vary between the tastes of different types of passengers with different palettes and cuisines? This is the predicament of caterers and inflight sales. They need an intelligent way to maximizing the availability of these products onboard while minimizing wastage from unsold goods.

Revenue Enhancement and Profitability Do service staff know which products they should be pushing to customers at the opportune moment? Can data-driven models help determine when to offer these products at the zero-moment-of-truth? This is a challenge to be solved by complex algorithms that analyze purchase behavioral patters.

THE SOLUTION

The democratization of data and insights from revenue managers to the desk-less workforce.

qbo insights connects to data from multiple data sources – sales, reservations, POS, schedules, and inventory to power historical data analysis and analytics on-demand to revenue managers.

An analyst, revenue manager, sales manager, product development executive can all access a ‘single source of truth’ while maintaining to use their own terminologies using intelligent synonyms for flights / routes / sectors / markets / origin / destination etc.

The platform provides dynamic market basket analysis to evaluate the most appropriate product pairs for every time of day, flight and route.

Revenue Managers can forecast the quantity and revenue from sales for any product in their inventory at any time horizon – from 1 day up to 12 months – taking into account variance, seasonality, and historical trends.

Ultimately qbo insights allows key decision-makers to act on insights through collaboration on a secure, web and mobile platform, and drive profitability at every stage of the value chain.

THE RESULTS

Augmented Intelligence for Everyone

The untapped potential of data-driven insights by revenue managers and product planners is estimated to increased top-line revenue by 10% through stronger inflight-sales.

Accelerated decision making capability from 6 weeks to near real-time with the aid of an integrated data pipeline made possible by qbo insights.