How can airlines reduce their costs using Big Data? Or is big data just another cost for airlines? What other ways are there for big data to reduce costs?
Big data is increasingly becoming the difference between successful airlines and those that struggle to compete in a highly competitive industry.
The airline industry expects to make a profit of nearly $20 billion in 2014, up about 50 percent from 2013 profits, according to figures released by the International Air Transport Association (IATA). An astounding turnaround from 10 years ago, when nearly half of the biggest U.S. airlines were in bankruptcy, and the industry was losing about $10 billion per year.
Part of this is believed to be down to big data. It’s debated as to whether big data is best used for cost-reduction or revenue generation and I think some of the points can cover both but I’ve tried to focus on costs. So how can airlines use big data to reduce those costs?