Data to Decisions. Philip Fernandes

Transcription

1 Data to Decisions Philip Fernandes

2 Decision Making Rationality Intuition

3 Complexity in Airlines Airlines is a complex business, involving many interdependent variables: o o o o o o o o o o Route network Fleet Connections Yield Seasonal demand Weather Fuel prices Competitive scenario Market dynamics

4 Data Silos in Airlines Revenue Accounting Marketing & Planning Commercial Cost Operations Do they talk to each other? 4

5 Data Overload

6 ENTERPRISE EFFICIENCY PERFORMANCE Data Analytics PROCESS TOWARDS THE DEPTH OF INTELLIGENCE 6

7 Decision Making Rationality Intuition

8 Connecting Data Revenue Accounting Commercial Operations Marketing & Planning ACTIOANABLE ANALYTICS Cost 8

9 Levels Actionable Analytics Route Profitability Analysis Sales Channel Analysis Customer Segmentation What If Scenario Simulation Modeling Connecting Traffic Analysis SPA Effectiveness Analytics Loyalty Program Effectiveness Analysis Campaign Tracking Analysis.and many more Best Possible Solution- Optimization Modeling To Estimate Predictive Modeling To Understand & Infer- Descriptive Modeling

10 ABC Airline s Flight Cancelled

11 Total Cost Impact Cost Data $ Airport usage cost $ Cost incurred towards PAX facilities $ Cost incurred towards crew facilities Operational Data # PAX transferred to other Airlines # Crews scheduling disruption Airport facility utilization reports Revenue Data $ Provisional unrecognized Revenue $ Inward billings

12 Example 1:Sales Channel Analysis

13 Channel Effectiveness Measures How can we measure channel wise performance? Which Channels are profitable consistently? Which Channels are very poor in Quality performance? Who are the channels adding burden cost? Which channels to be coached to make them profitable? Who are the channels to be focused more? How can we improve on distribution strategy? Which channels are likely to provide more business in future?

14 We can fetch sales information from RA data to answer 14

15 Growth Above 15% of Avg. growth Agent s Performance Top 5% agents 80% Revenue Analysis based on o Year 2008 o Top 5% agents 640 / High Medium Parameters Volume Profitability Performance Measures PAX Count Yield Growth Low Below 15% of Avg. growth Low Medium High Low Performers, 34% * Pax contribution X Pax CAGR Stars, 27% 15% less than avg. yield Yield 30% more than avg. yield Potentials, 40% 15

16 Along with Channel Cost Data we can further answer 16

17 Quality and Cost Agent s Profitability Low return - High cost channels High return - High cost channels High Low return - Low cost channels High return - Low cost channels Low Channels Low Performance High

18 How this will help you? Implementing Optimized Distribution Strategy : By reducing Leakages By maximizing Margin per Customers By promoting Value for money Channels

19 Example 2 : Seasonality Analysis 19

20 Yield vs. Booking Trend Lean - Y Class - Pax Count Lean - Y Class - Avg. Yield (INR) Peak - Y Class - Pax Count Peak - Y Class - Avg. Yield (INR) Maximize yield in peak seasons Promote early booking benefits Days & Above Days Days Days 6-15 Days 0-5 Days 90 Days & Above Days Days Days 6-15 Days 0-5 Days 90 Days & Above Days Days Days 6-15 Days 0-5 Days 90 Days & Above Days Days Days 6-15 Days 0-5 Days May Jun Jan Aug

21 Variance in Load 2008 Ex-IND Y Class 2008 Ex-US Y Class 90% 80% Yield started dipping 70% 60% 50% 40% Directional load variance 30% 20% 10% Opportunity for optimizing load by catering to multiple traffic/ traveler profile, corporate promotions, leisure tourism etc. 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 21

22 Example 3 : Interline-SPA Analysis 22

23 Airlines: Proration in RA How can I evaluate what is better for me? SRP MPA SPA How is my revenue share getting effected by Rate changes New Code Shares Ticketing Practices What is my share / retentions in this market?

24 Processed Volumes Top Five Errors Contribute to 86% of all errors Two partners contribute to 70% of all errors Overall Success Rate of 89% Top Two Partners contribute to 65% of interline business

25 SPA Performance Report Performance of SPA across RBD Productivity of Strategic Alliance / Partnership Used for monitoring of SPA performance and Yield

26 Tax Report Taxes Liability by Place of Issue Analyzed by Sales period and Applicable Sector Used for Tax Payments

27 Geographical Analysis - Regional share Country Share Saudi Arabia 35% UAE 25% Qatar 15% Kuwait 10% Oman 10% Rest of Middle East 5% Top 5 countries contributes to 95% of Middle East total share Middle East 24% Africa 10% South America 6% North America 12% Europe 30% Asia Pacific 18% Asia Pacific, 60% contribution is from India Country Share France 35% Germany 25% United Kingdom 15% Netherlands 10% Rest of Europe 15% Top 6 countries contributes to 85% of Europe total share

28 Share of Business by Partners Air Europa 10% Others 5% CSA Czech Airlines 10% Air France 35% Alitalia 15% KLM 25% Share of Business by Partners

29 Passenger Volume Snapshot on SPA Performance High Above 50% Air Nepal DBA Freebird Airlines Nigeria Eagle Etihad Flybaboo Delta, Air Canada Watania Medium 25% - 50% Low Up to 25% Qantas SkyWest Xiamen Airlines Air China Star Airlines Jazeera Low Below 2% Aeromexico, Yemen, US Garuda Silk Air Atlas jet Medium 2% - 6% Passenger Yield Air France JAL LAN Airlines BMI, Alaska, KLM High Above 6% 29

30 Kale s DSS Value Proposition Meaningful Information integration Measures and Drivers Business Transformation Business Process On time Quality Presentation Granularity 30

31 Offerings Kale s Consulting & Data Analytics Arm Airlines Logistics Travel Decision Support Health Check.. On Demand Analysis Consulting Projects - Statistical & Analytical Solution MIS/Dashboard with Enhancement & Customization Value Added Insight Industry Focus 31

32 THANK YOU Disclaimer Text: The material contained in this presentation is proprietary information of Accelya and/or Accelya Kale Solutions Ltd. (hereinafter referred to jointly as Accelya). To avoid misunderstanding or misuse, we respectfully request that you do not show, distribute, or allow use of this document without a written consent of Accelya marketing team. Accelya adheres to a strict code of ethics. We honor confidentiality requests and ask others to do so as well. Copyright 2012 Accelya and Accelya Kale Solutions Ltd. (All rights reserved)