According to a recent survey, consumers benefit from lower fuel prices with lesser fares, more routes, and are expected to spend 1% of world’s GDP on air transport.
The airline industry typically includes transport service providers of cargo and passenger. The primary customers of the airline industry services include governments, individuals, and businesses across the globe. The industry is marked by high growth compared to the (gross national product) GNP trend and continuous productivity increases since the start of commercial air traffic. The constant demand for new low-cost carriers, increasing demand from emerging economies, deregulation, and rising middle-class populations are some of the factors responsible for the growth of the airline industry. The airline industry is also characterized by intense competition and price pressure that involves a continuous requirement to boost efficiency. In the hassle to boost efficiency, several factors are hampering the growth of the airline industry. These factors include:
- Customer Expectations: One of the most crucial aspects for firms operating in the airline industry is the ability to manage customers’ expectations with relation to their experience. Identifying what customers are expecting out of the air transport services becomes crucial.
- Air Traffic and Competition: Firms within the airline sector constantly face pressure to comprehend their actual revenue growth and potential profitability although they compete against low-cost and best-cost carriers.
To counter these factors, firms are leveraging competitive intelligence solutions. The competitive intelligence solutions help firms increase focus on benchmarking the products and services offered with that of their direct competitors. These solutions also assist companies in identifying competitive opportunities and trends to discover any potential functionality gaps to enhance their business performance.
The Business Challenge
- The Client: Airline industry firm
- Area of Engagement: Competitive intelligence
The client, a leading provider of airline services, wanted to minimize their exposure to risk and improve their overall commercial performance. The client wanted to gain a clear understanding of the business process and competitor protocols and strategically position customized product and service offerings. They also wanted to gain recommendations on devising robust marketing strategies and look for promising solutions to achieve continuous growth and increase profits. Additionally, they wanted to fend off the competition across niche markets by profiling their direct competitors across the industry.
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The competitive intelligence specialists at Infiniti Research carried out extensive interviews and research with prominent stakeholders across the airline industry to analyze the competitive structures and market environments. The experts also collected information from various secondary sources such as company presentations, industry forums, and paid industry databases to refine the current product groups.
The Solution Offered and the Business Impact
With the help of Infiniti’s competitive intelligence solution, the airline industry client gained an accurate view of the competitors and their product and service offerings. The solution also helped the client keep track of the competition and offer tailored services to their customers. The engagement further helped the client gain insights into the competitive scene to stay ahead of the competitors and cement their market presence.
The future of the airline industry is likely to be more turbulent, as a new wave of technological change and innovation unfurls. Some see this wave sweeping the airline industry away, citing as precedents the printing industry before computer design software, the music industry before internet downloads, and, the taxi industry before Uber arrived.