Business Intelligence in Airlines Industry: Issues and Solutions

The report discusses the usage of business intelligence in operating airlines company successfully. It covers issues faced by the Airlines companies and their solution through BI. The report also includes literature review, customers issue, flight delay, missing luggage, seat allocation, connecting flight, subject, course code, and college/university.

Running head: BUSINESS INTELLIGENCE
BUSINESS INTELLIGENCE
name of the student:
name of University:
Author's note:

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Table of Contents
Introduction:...............................................................................................................................2
Literature review:.......................................................................................................................2
Issues faced by the Airlines companies and their solution through BI:.....................................3
Customers issue:.....................................................................................................................3
Flight delay:...........................................................................................................................4
Missing luggage:....................................................................................................................4
Seat allocation:.......................................................................................................................5
Connecting flight:.......................................................................................................................5
Conclusion:................................................................................................................................6
References:.................................................................................................................................7

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Introduction:
The aim of this report is to discuss the usage of business intelligence in operating
airlines company successfully. Airlines industry is a huge place to work at which need update
for every second, the management needs a collection of data every moment. In case they do
not find any at the moment of emergency, the whole initiative and service will be devastated
and customer dissatisfaction will reach height. There are some issues which frequently
emerges in the airlines sector at the time of providing service to the customers and managing
the flight at a time are- customer issues, flight delay, seat allocation, missing luggage and
connecting flight.
Literature review:
As stated by Muntean (2018), Business intelligence covers strategies and information
systems that the companies often use to excerpt from large as well as various data. To this
author, business intelligence relates the information from value chain and gather relevant
knowledge for supporting a range of tactical, operational and strategic business decisions of
the companies. Through this method the companies can easily attain sustainability as this
have become an integral part of corporate business. Business intelligence also implies a
perfect integration of the systems operating in an organization by combining newer
approaches at all the levels of the company such as performance management, business
model, projects of business intelligence and data models of the corporation.
To Andronie (2015), airline industry of any country deals with a large quantity of
unstructured, rapid changing and complicated data for which they need to use business
intelligence tools. Business intelligence specializes helps the airlines to obtain needed
knowledge and decisions to explore these big data for the organizations. It is important so
that the airlines can fundament their activities in one hand and improve their process. BI tools

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hence are valuable instruments which optimally processes the data related to the airlines and
optimizes the activities carried out to maximize their profits. Business intelligence also helps
to meet the expectations of the passengers as well as stakeholders.
The study conducted by Bimonte, Schneider and Boussaid (2016) reveals that the
companies now a day can access more data for their decisional analysis on various indicators.
Therefore, the importance of business intelligence instruments has increased. In this study the
authors have identified the indicators and classified them. This is due to the fact that the
authors have identified the lack of conceptual framework in implementing these indicators
which affect the business decisions making directly. These BI indictors are amalgamated with
the existing industrial tools. Thus, these indicators coexist in same environment in order to
exchange the data through chaining model.
Issues faced by the Airlines companies and their solution through BI:
Customers issue:
Business intelligence plays an important role in the case of improving the relationship
with customers. In this study different issue such as delay flight, missing luggage, seat
allocation and connecting flight regarding issue have been mentioned. In this case this can be
said that customer satisfaction is one of the major concerns for the business intelligence
management team. BI will offer the company a scope to build good client references in one
hand and new customer acquisition on the other. In order to face the problems associated with
the customer satisfaction reading services, New Zealand Airlines must take measures
beforehand. In order to manage process, Kopčeková, Kopčeka and Tanuška (2013) have
argued that it must be accurately monitoring and measuring all the customer service factors
from the very beginning and monitoring factors of customer satisfaction. Through business
Intelligence, it is easier for the management to make some appropriate corrections then

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ensure the customer retention with the company. There is some extraordinary way through
which BI can save this airlines company.
Flight delay:
It is true that the uses of technology can be effective for empowering the travel
provides for keeping the customers in the loop while the flight cancellation and flight delay
regarding is occurs. Due to the climatic changes and other technological issues, this issue
emerges in this industry frequently. In this case the management needs to use BI at its best.
According to the scholars, through technology, all the issues regarding flight delay will be
identified based on which the management will be able to sort out the matters associated with
connecting flight or any other events for making the flights delayed (Considine & Cormican,
2016). The entire process will be completed under the supervision of business intelligence
management authority who will then decide whether the customers will be compensated or
offered any other benefits for this mishap.
Missing luggage:
In the Airlines industry, the issue of missing luggage is quite common for the
management but this can never be repeated. This issue creates grievances among the
customers thus harm reputation of the company fast. In mitigating this particular issue, the
management of New Zealand Airlines must invest time and effort in utilizing technology
completely. BI can be used for solving the issue regarding missing luggage. It will optimize
all the orders, both of the passengers of the connecting flights as well as the single flights
(Forsgren & Sabherwal, 2015). In addition to tis, some of the luggage are sent for proper
checking for the security purpose. By using the technology in terms of BI, the luggage can be
easily tracked by the airport authority as well as the managers responsible for taking care of
the luggage of the passengers. However, it is truly very difficult as the service area is huge
and there are always crowd of passengers asking for help all the time. Therefore, to Forsgren

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and Sabherwal (2015), technological assistance will be the best method to effectively transfer
luggage at stop over airports for passengers with connecting flights.
Seat allocation:
The issue of seat allocation is one of the most important factors that create issues
among the customers. Firstly, the management of NZ airlines will be grouping the similar
flyers together so that one passenger does not get disturbed by the other. For example, the
elder passengers will be needing a frontal area so that they do not have to walk long to get
their seats, the people with kids will also require seats so that they can access the benefits for
caring their children.
According to Wang, So and Sparks (2017), this also covers the passengers who will
need window seats or other places according to their desires for taking meal or other services.
In case these people do not get seats according to their requirements, customer grievances
will arrive. In solving such issues, the technology used by the company must have
proficiency to answer all these problems (Gunarathne, Rui & Seidmann, 2018). Technical
assistance at the time of booking will give the passengers opportunity to clarify their
requirements which will reduce such type of problems from the beginning. However, proper
communication with the passengers regarding seat allocation at the moment of emergency
need manual assistance of the flight staff (Lee, & Ko, 2016)
Connecting flight:
There are issues of customer grievances when one flight reaches the ground especially
among the passengers of connecting flight especially international passengers. These
customers feel tired of their lengthy journey hence they need special care. In case these
passengers of connecting flights do not get proper are or face issues in security check up or
communication gap with the customer care officers may create issues. In this case, the

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technology will help to know the time of the flights or delays this sort out the passengers of
the connecting flight. These is needed so that these passages do not miss their flight. Hence
proper communication through BI with the passengers can mitigate such type of problem.
Conclusion:
Therefore, it can be concluded that the BI is the best method to manage the customer
issues in the airlines industry. This helps in identifying issues and taking prompt actions at
the time of emergency. In order to retain customers and provide best service always, he
management can take help of the technology so that the customer grievance can be avoided.

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References:
Andronie, M. (2015). Airline applications of business intelligence systems. INCAS
Bulletin, 7(3), 153-160. doi:10.13111/2066-8201.2015.7.3.14
Bimonte, S., Schneider, M., & Boussaid, O. (2016). Business intelligence indicators: Types,
models and implementation. International Journal of Data Warehousing and Mining,
12(4), 75-98. doi:10.4018/IJDWM.2016100104
Considine, E., & Cormican, K. (2016). Self-service technology adoption: An analysis of
customer to technology interactions. Procedia Computer Science, 100, 103-109.
Forsgren, N., & Sabherwal, R. (2015). Business Intelligence System Use as Levers of Control
and Organizational Capabilities: Effects on Internal and Competitive Benefits.
Gunarathne, P., Rui, H., & Seidmann, A. (2018). When social media delivers customer
service: Differential customer treatment in the airline industry. Management
Information Systems Quarterly, 42(2), 489-520.
Jourdan, Z., Rainer, R. K., & Marshall, T. E. (2008). Business intelligence: An analysis of the
literature. Information Systems Management, 25(2), 121-131.
doi:10.1080/10580530801941512
Kopčeková, A., Kopček, M., & Tanuška, P. (2013). business intelligence in process
control. Research Papers Faculty of Materials Science and Technology Slovak
University of Technology, 21(33), 43-53. doi:10.2478/rput-2013-0039
Lee, J., & Ko, S. (2016). Effect of the In-Flight Meal Service Quality on the Customer Value
and Loyalty. Indian Journal of Science and Technology, 9(26).

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Muntean, M. (2018). Business intelligence issues for sustainability
projects. Sustainability, 10(2), 335. doi:10.3390/su10020335
Wang, Y., So, K. K. F., & Sparks, B. A. (2017). Technology readiness and customer
satisfaction with travel technologies: A cross-country investigation. Journal of Travel
Research, 56(5), 563-577.