When Covid-19 impacted the market, we saw many companies taking control of what they could and one of the main actions was to freeze costs.
Even during these challenging times there are still many areas to explore, we see that the patterns of the customers have changed and provides the possibility to invest and develop new revenue streams and in-turn increase turnover and profitability in the short and long-term basis.
This is what we would like to share in this blog and also exemplify.
Lesson from the Airline industry, they work with the data which is internal and external. Internally from the point of view that we have X % booked seats for a certain flight and need to discount or increase costs due to high or low availability. Combining this with external factors such as, which weekday it is, Christmas, New year’s Summer holidays etc. which will impact the price for the customer and of course the other way around in low season when many aren’t travelling the airline tickets tend to be lower.
There are so many industries who have the data but don’t always use it to be able to fill capacity.
I will exemplify:
Imagine the last time you had dinner at a restaurant, you sat down with your friends or family received the menu and ordered your food and drinks. You are next to a big wide window with a fantastic view. You look around the restaurant and see that not everyone has the same view, however everyone is paying the same price.
If you eat at a restaurant on a Monday or a Friday, it’s usually the same price, right?
Ask yourself would you be willing to pay a bit more for having a great view and booking when it’s Friday or Saturday evening and being sure to get a table? I’m sure in many cases you would. The same thing goes the other way around to also provide an incentive for customers to pay a little less to come before the peak hours or other day of the week at a lower cost. This is something the pubs and bars around the world invented a long time ago and named “Happy hour”.
It’s about collecting the data, analyzing and adjusting and the technology to make this happen has been developed.
This is just one example how to in these challenging times it’s possible to increase revenue and profitability with help of AI/ML.
What would you like to predict and would have an impact on your business to increase revenue and profitability?
Please feel free to reach out to us and we would be happy to listen to your idea and how to turn that idea into a solution.