Data Warehousing: Airlines Company

Data Warehousing Text
Exercise #4 – pg. 21
For an airlines company, how can strategic information increase the number of frequent flyers? Discuss giving specific details.
Nowadays the competition has increased between the different industries. To survive in such competition each company needs optimized services, physical chattels, good and dutiful employees, to achieve these things use of strategic information are important. The number of flyers in the airlines can be used by using the strategic information. There are many aspects in which the service is provided from the flight attendants service to on time delivery of flights to maintain the plans of schedules which have to be established.

The strategies used to increase the number of flyers include several plans. It is important for the airline or any other loyalty management to take the customer feedback and to use it in the improvement of the airline services by making changes. All the complaints and compliments of the customers should be considered and should be changed according to customer’s choice to enhance the number of frequent flyers.

 Branding and co-branding is another strategy to increase the number of flyers for any airline company. To reduce an airline’s mileage liability, one may consider introducing a different mile age credit and a different mileage expiry rule for the miles earned. Another important strategic business approach is CRM (Customer Relationship Management) CRM, like many potential business strategies, underscores the need for an airline to identify its competitive advantage.

Exercise #4 – pg. 44
For an airlines company, identify three operational applications that would feed into the data warehouse. What would be the data load and refresh cycles for each?

There are three initial applications which would feed into data warehouse in airlines which include

1. Demand driven dispatch
2. Goodwill letters
3. Group snoop

Demand-driven Dispatch

Prior to the warehouse, flight schedules and plane assignments were seldom changed once set, regardless of changes in markets and passenger levels. Continental operated flights without a detailed, complete understanding of each flight’s contribution to profitability. After the data warehouse, Continental created a Demand-driven Dispatch application that combines forecast information from the revenue management data mart (which is integrated with the enterprise data warehouse) with flight schedule data from the data warehouse, to identify opportunities for maximizing aircraft usage. For example, the system might recommend assigning a larger plane to a flight with unusually high demand. Continental uses this application to “cherry pick” schedule changes that increase revenue. Demand-driven Dispatch has led to an estimated $5 million dollars a year in incremental revenue.