Understanding the role of data in passenger communications
The travel industry has faced incredible challenges over the past few years. From COVID-19 to geopolitical tensions, to extreme weather and rising fuel prices, the list goes on and on, forcing travel brands to continually adapt and change at an unprecedented rate. And while the industry was changing, so were passengers.
Today, passenger expectations are higher than ever, demanding not only exceptional customer service but also personalised travel experiences that meet their individual needs and preferences. Travellers overwhelmingly prefer booking with companies that personalise offers based on their interests and past behaviour. In fact, studies show this preference can be as high as 80%.
This shift is driven partly by experiences with other companies outside of travel, but also by a growing comfort with data sharing: Passengers are increasingly willing to provide information as long as they understand how it will be used to enhance their experience or journey; transparency is key. According to a 2022 survey, 85% of customers say that knowing a company’s data privacy policy is important to them. Ultimately, despite these concerns, passengers want to feel valued and understood and are willing to share their data to achieve this. More than 50% of consumers are willing to share information on products they like in order to get personalised discounts. Despite this, only 24% of firms report they are effectively investing in personalisation across multiple channels.
of consumers are comfortable with personalisation, as long as brands are using their own data and not purchased data.
of customers are okay with businesses retaining their purchase history and preferences if it means they can provide more tailored experiences.
Source: BRP consulting
Using passenger data
Passenger data can help you gain a deep understanding of their preferences, demands, and evolving expectations, including everything from their favourite travel destinations and the amenities they’re willing to pay for - like Wi-Fi or lounges - to health concerns, who they’re travelling with, and dietary requirements. This wealth of data allows travel brands to personalise their communications at every stage of the passenger journey, including during acts of disruption.
Imagine receiving a proactive notification about a flight delay that not only apologises for the inconvenience but also offers simple rebooking options, lounge access information, free Wi-Fi, or refreshment vouchers, all tailored to your specific needs and preferences.
Travel brands can also call upon data like how many times a passenger's flight has been disrupted in the last year, or whether their baggage was lost and whether they were happy with how the situation was resolved. This personalised communication shows empathy and strengthens the bond between passengers and the travel brand. By using available data effectively to map out the customer journey, it builds trust, loyalty, and enhances the relationship between the travel brand and the passenger.
Understanding data sources and technology
Airlines and travel companies have access to a vast amount of information from various sources, each offering unique insights into passenger preferences and behaviours.
Passenger Name Record (PNR)
The PNR acts as a central database containing booking details, like travel companions, trip duration, and any additional segments like hotels or car hire. It also captures special service requests (SSRs), such as dietary preferences, mobility requirements, or unique travel arrangements like transporting pets or sports equipment. Leveraging data from the PNR enables airlines to tailor communication and offers based on individual passenger needs and circumstances.
Customer relationship management systems (CRM)
CRMs offer valuable insights into past interactions, passenger preferences, and loyalty program participation. By analysing past interactions with your brand, you can understand a passenger's communication preferences and areas of interest.
Website and app interactions
Website browsing history, abandoned cart details, and user behaviour on apps reveal a passenger's travel interests and intent. This data can inform targeted promotions and recommendations.
Direct passenger feedback
Feedback surveys provide important insights into passenger satisfaction levels and areas for improvement in communication and services.
Social media
Public profiles and travel-related posts, when accessed with consent and proper privacy considerations, can inform passengers’ aspirations, preferred destinations, and travel styles.
Third-party data
Demographics, travel trends, and popular destinations learnt from third-party sources (with passenger consent) can add further detail on passenger profiles and inform broader communication strategies.
Data security and privacy
Transitioning to a data-driven communication approach raises important concerns about keeping passenger information secure.
It's important to take strong measures to protect this data and follow privacy rules. Passengers are trusting your business with their personal information, and as such, you must demonstrate a commitment to responsible data management practices.
This includes:
- Implementing strong cybersecurity measures to protect data from unauthorised access or breaches. In 2016, Uber experienced a data breach that exposed the personal information of millions of users. The company's delayed response and initial attempts to conceal the incident severely damaged their reputation and resulted in significant financial penalties as well as 3 years' probation for the company’s chief information security officer. This sentence has been widely criticised for being too lenient with many asking for a prison sentence.
- Clearly communicating to passengers how their data is collected, used, and protected.
- Providing passengers with control over their data, including the ability to access, correct, or delete their information.
- Complying with all applicable data privacy regulations, such as GDPR and CCPA.
This is particularly significant given that 55% of customers prioritise trustworthiness and transparency as the most crucial characteristics of a brand, while 48% value personalisation as long as their data is safeguarded.
9 out of 10 people said they would avoid an organisation if they had concerns about its security policies.
By prioritising data security and privacy, airlines can build trust with passengers, using their data ethically for personalised communication strategies and a better overall experience.
Source: Mckinsey
