With industries, historically there has been slim margins during certain economic times. This may be due to the forces out of the industry's control. In the alternative, the margins may be fine. With either scenario, management monitors the margins and profits. Not completing this would be a glaring oversight.
Data analytics has been applied in the airline industry to ensure the best margins possible are enjoyed by the business. Optimization modeling and analytics have been applied for this and also in the decision-making process.
For instance, fuel is a large expense for airlines, as you can imagine. The modeling was applied to fuel spot pricing. This was a complex algorithm analyzing the costs of fuel along the airplane's stops, type of the aircraft, weight ot the aircraft, cost of the extra fuel, time spent fueling, and other attributes.
This is perfectly applicable to not merely the airline industry, but nearly all.
No comments:
Post a Comment