Case study: Cathay Pacific
Real-world case studies provide valuable insights into the practical application of data-driven strategies in the travel industry.
Cathay Pacific is a great example, showing how it used data to drive revenue and enhance the satisfaction of their customers.
The scenario
Cathay Pacific, a prominent airline in the Asia-Pacific region, identified a need to elevate its passenger experience at a time when passengers were the most nervous and operations were more heavily impacted than they’ve ever been.
To do this, it leveraged the data available to overcome the challenges it faced in meeting the needs of its passengers.
- The impact of COVID-19: In February 2023, Cathay Pacific faced a significant challenge when the government imposed restrictions on the number of flights from Hong Kong to Japan due to COVID-19. As a result, the airline was forced to cancel 150 flights to Japan, impacting numerous passengers.
- Evolving passenger expectations: Passengers' expectations for personalised, smooth, and safe travel experiences continued to evolve, challenging Cathay Pacific to deliver tailored services that align with individual preferences and needs during an extremely difficult period for aviation.
Cathay's response
Cathay Pacific responded to this unprecedented disruption by sending hyper-personalised omni-channel communications to promptly inform affected customers.
The airline understood the necessity of ensuring that passengers received details directly from them rather than relying on social media or rumours.
Initially, the airline focused on gathering data from various sources, including passenger reservation systems, CRM database and loyalty programs. This thorough integration of data allowed Cathay Pacific to gain a complete understanding of passenger preferences, behaviours, and travel habits.
The airline then introduced personalised communication across customer touchpoints, using data-driven insights to customise messages and offers for individual passengers. This enabled Cathay Pacific to provide a more personalised and attentive travel experience, covering pre-departure communications, in-flight services, and post-trip follow-ups.
Adopting a data-led personalisation approach
- Improved passenger satisfaction: Tailored experiences based on data insights led to a significant improvement in passenger satisfaction scores and feedback, indicating heightened levels of engagement and overall satisfaction with the airline's services.
- Increased revenue opportunities: Data-driven personalisation enabled Cathay Pacific to identify and capitalise on new revenue opportunities, including upselling ancillary products, promoting targeted offers, and fostering repeat bookings through enhanced loyalty programs.
- Enhanced brand loyalty: Consistently delivering personalised experiences that exceeded passenger expectations strengthened brand loyalty and advocacy, fostering enduring relationships with Cathay Pacific.
The importance of personalised and reachable communication channels
Cathay Pacific's experience demonstrates the power of data integration and personalised communication to improve customer satisfaction.
Its success highlights the need to integrate data from a range of sources to gain comprehensive insights into passenger preferences and behaviours.
Using this information, the airline was able to deliver hyper-personalised communication and tailor experiences that resonated with individual passengers' needs and preferences.
Through continuous learning and adaptation, Cathay Pacific continues to refine its approach, delivering ongoing improvements and innovations in customer engagement and satisfaction.
"We've been reaching out to customers with our chatbot, WhatsApp, and other social media channels, and they have responded and engaged in all these channels, so moving forward we want to be more personal and reachable, providing options to our customers. We've built notifications in the platform anywhere we know we're informing customers of disruption, whether that's a seat change, boarding gate change, or flight disruptions."
Annie Ling, Head of Digital Experience for Product Excellence at Cathay Pacific
