IATA’s projections indicate a surge of 200 million additional air passengers in 2024, painting a picture of imminent growth for the airline sector, with expected profits on the verge of ‘taking off’. This remarkable upswing in passenger volume signifies an extraordinary opportunity for airlines to capitalise on promising market demand.
As airlines continue to grapple with the challenges of navigating a data-driven industry whilst meeting passengers’ escalating expectations, our mission is clear.
Ensuring product demand is met efficiently, Data Clarity created ClarityIFR, a complete onboard retail system including warehouse to seat stock management, predictive sales forecasting, and increasing sales through pre-order and buy-at-seat solutions.
How airlines survive and thrive now and for the future is established on how well they generate revenue and the delivery of customer service.
Here’s how to revolutionise your operations with ClarityIFR in 5 keyways:
1: Increase your profits with a 360-degree Passenger Perspective
McKinsey & Company report that airline retailing could be worth $40 billion by 2030, yet airlines are continuing to grapple with heavy sales trolleys filled with unsold items and are being burdened by the difficulties in managing their inventory effectively, be that in terms of forecasting or restocking. This, along with a decrease in passenger interest in duty-free and in-flight shopping, is continuing to hinder airline development.
Our comprehensive solution is designed to create a holistic 360 passenger view, using demographics, destinations and flight times to tailor offerings and optimise stock, helping your airline understand the needs of your customer.
ClarityIFR brings forth immediate benefits to a single airline, including:
- A £22 million increase in in-flight sales per year.
- A £29.5 million reduction in inventory.
ClarityIFR has not only boosted retail profits but also alleviates stock burdens, resulting in over £11 million in annual fuel savings.
2. Achieve Lower Carbon Emissions by Reducing Product Wastage
The planet is prime for all of us, and with the challenges the aviation industry faces on environmental protection it is a case of understanding what can be done to reduce fuel usage.
Did you know that the aviation industry is responsible for over 10% of global CO2 emissions? Heavy loads mean more fuel production, and with worldwide climate change efforts continuing, airlines are aiming to follow suit and prioritise this heading into 2024.
The key point is don’t fly what you don’t sell. Minimise pre-flight and post-flight wastage to support global net-zero goals by 2050.
ClarityIFR prioritises global initiatives by employing AI-integrated solutions. These solutions forecast seat occupancy, analyse passenger profiles, and understand individual product preferences for each flight departure. This enables airlines to promptly adapt to passenger demand, reducing unnecessary carbon emissions and optimising resource allocation for greater efficiency. As a result, this has given a single airline:
- More than £11 million in annual fuel savings.
- More than 12,512 tonnes of CO2 cut per year.
3. Increase your Sales through Predictive AI Insights
Passengers are the lifeblood of the aviation industry, and with such a highly saturated market, airlines are faced with high competition levels and are competing for passenger demand. Passengers are increasingly losing interest in retail-related offers whilst in the air and are leaning towards seeking an elevated in-flight experience.
ClarityIFR provides personalised offers using integrated AI solutions, ensuring every offer reaches the right passenger on the right flight. Following recent predictions in this year’s aviation market, our approach is simple; Load Less, Sell More.
ClarityIFR employs its AI-enabled hyper-personalised Dynamic Bar solution to ensure that our clients only carry what their passengers will buy. A transformative strategy to significantly reduce unsold inventory, leading to an over 30% increase in in-flight retail conversion rates.
4. Enhance Product Availability and Boost Revenue with Operational Efficiency
Have you ever experienced being on a flight where your favourite snack sold out? Insufficient onboard stock poses a challenge for airlines as they expand their product offerings within the confined space of an aircraft.
ClarityIFR addresses this issue by employing its warehouse management system to provide comprehensive oversight and visibility of in-flight inventory. By tracking stock intake, including pre-orders, we optimise available space and offer tailored recommendations based on passengers’ past-purchase behaviours, ensuring a well-stocked experience for travellers.
5. Increase your Profitability through Collaborative Partnership
Our commitment is simple: we collaborate closely with you to enhance your bottom line. Emphasising compatibility and seamless integration, we ensure that data operations run effortlessly, empowering you to extract maximum value and insights.
Using a data-driven approach to sourcing, developing, and managing the supply of food/beverages and duty-free items to unlock buying behaviours and meet customer demand will generate additional revenue, reduce cost, and boost overall sales performance.
From the warehouse to the passenger’s seat, we enhance sales offering a wider range of pre-order stock, ensuring that every customer receives personalised and precisely timed offers.
ClarityIFR’s data-driven methodology surpasses traditional metrics, fine tuning tailored offers for each flight and ensuring accurate delivers to the right customers, at the right time.