Faculty of Science, Engineering

and Technology (FSET)

AVA10004!
Aviation Marketing

1
Aviation marketing

Week 10 :
!
Managing Marketing Information Systems
Agenda !
➢ What is a Marketing Information System (MIS)!
➢ Importance of MIS !
➢ Data Classification! !
➢First Party!
➢Second Party!
➢Third Party !
➢ Example Data sources used by Airlines!
➢ How do airline network planners use these data tools?!
➢ Ethics issues in data collection / use
 Marketing Information Systems

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What is MIS?
A MIS consists of people, equipment, and
procedures to gather, sort, analyse, evaluate and
distribute needed, timely, and accurate information
to marketing decision makers (Kotler et al, 2003)
 Importance of MIS
➢ Timely supply of information: !
➢ Provides feedback on an org’s
performance !
➢ Allows actual performance to
be compared with target
performance !
➢ Takes and applies control
measures !
➢ Supports the strategic planning
and implementation !
➢Business Environment !
➢Market segmentation and
Positioning !
➢Product and pricing!
➢Customers and values created

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Data Classification
Data is classified as 1st, 2nd
or 3rd party data.!
!
The main difference between
them is the trade off between
quality and reach.!
!
For example, an Airlines
Frequent Flyer program may
be of the finest quality for
reaching or retargeting their
current customer base, but
extremely limited to reaching
new audiences
1st Party Data
First-party data is the data collected by a business from their own
customers or audience. It can come from a variety of sources that the
business owns and manages:!
!
Website (e.g. through cookies)!
Mobile app!
CRM!
Customer feedback (both positive and negative)!
In-store beacons!
Sales data!
Contact Center!
Surveys!
Focus Groups
1st Party Data Cont.
It is the result of a direct, trusted relationship and
communication with a consumer!
!
Owning first-party data gives a business the freedom to
create their own segments and profiles based on the unique
consumer data on hand!
!
The rise of new regulation, such as GDPR in EU, means
businesses often need consumer consent to use their data!
!
First party data has inherent limitations in reach. It is
restrictive in scale and breadth. And thus may not be suitable
to make assumptions about the total market place and to
reach new audiences
2nd Party Data
Second party data is someone else’s first party data. It is bought directly from the source and can be
utilized for your own marketing.!
!
It represents a way to overcome scale limitations of first-party data and expand the reach and
increase the effectiveness of campaigns and personalize your campaign with only relevant data.!
!
Access to it can be obtained through a specific agreement between a first party data owner and
another entity such as direct partnership, data management platforms or a 2nd party data network.!
!
One example of obtaining a second-party data might be a hotel booking website collaborating with an
airline to mutually benefit from each other’s data sources.!
!
It is only possible when there is no competition or conflict of interest between the two parties involved. !
!
One disadvantage of second-party is related to the quality control of data obtained – you don’t have
control over the quality of others’ first party data as you have over your own first-party data. Another
thing is that although more scalable, second-party data reach is again limited to the reach of your
first-party data partners.
2nd Party Data Cont.
An example of a 2nd party
data company is ADARA!
ADARA provides the travel
and tourism industry with
greater visibility into the
needs and wants of travel
consumers. They provide a
unique, holistic
understanding of patterns,
trends, and behaviour.
Traveler resolution gets
clearer and more precise
with each partner that joins
their program.
3rd Party Data
Third-party data is generally aggregated from many different sources and consists
of rich behavioural or demographic data. It is often collected by an entity that
doesn’t have a direct relationship with consumers. !
!
Third-party data is often based on past user behaviour and not on information,
provided explicitly by the user.!
!
By collecting detailed behavioural profiles of users such as interests, patterns of
browsing activities, hobbies or preferences third-party data has incredible reach.!
!
One inherent disadvantage of third-party data is quality – 3rd party data is
statistical and aggregated data, it has not been derived from a direct relationship,
which makes it harder to trace back whether it comes from a reliable data source. !
!
Furthermore, since third-party data is offered by large data aggregators, it is not
exclusively provided to you and can easily be sold to other parties as well,
including your competitors.
3rd Party Data Cont.
Programmatic Marketing is the automation of digital marketing efforts. It
allows marketers to hold an auction every time a website loads. Before
any content is delivered, an algorithm determines which company is
willing to pay the most for the ad space.!
!
Programmatic Marketing allows companies to create highly targeted
marketing content for very specific demographics; age, gender,
geolocation, or even browsing habits. The perceived benefit is being able
to deliver the exact content to the right potential buyer at the perfect time.!
!
But their are concerns : loss of control of where your brand is being
advertised, “viewability" of the impression, and the accuracy of 3rd party
data used to drive demographics, impressions versus clicks!
!
Examples of Airline 3rd Party Data
MIDT (Marketing Information Data Tapes)!
!
Information bought by Airlines from GDS’s!
!
It contains information about airline bookings made by travel
agencies worldwide, connected to the various GDS’s!
!
Through this MIDT data, airlines can obtain important
information for decision making in sales, marketing, yield
management, route planning or scheduling!
!
Data does not include sales data made by airlines direct
channels
Examples of Airline 3rd Party Data
IATA (The International
Air Transport Association
is the trade association
for the world's airlines,
representing 290 airlines)!
!
IATA offers a wide range
of Business Intelligence
and Statistics services for
“tapping into new
opportunities within the
aviation industry”

https://www.iata.org/services/statistics/intelligence/pages/index.aspx
 Examples of Airline 3rd Party Data
IATA covers 82% of global airline traffic. PaxIS does not include bookings made directly via airlines
direct channels and as of 2011 all passenger data made from European travel agents was excluded!
!
IATA get their data from a variety of sources, the main one being BSP (Billing and Settlement Plan):!
BSP is a system designed to facilitate the selling and remitting between Travel Agencies accredited by
IATA and participating airlines. In a simple way, through its billing system, IATA very much acts as a
bank that distributes the money passengers pay for flights to the right airlines every month.!
BSP operates globally, except for the USA .

https://www.iata.org/services/statistics/intelligence/pages/index.aspx
 Examples of Airline 3rd Party Data
IATA recently developed a product called Direct Data Solutions
(DDS). It uses its existing PaxIS data (based on BSP data),
together with billing and settlement data from the Airlines Reporting
Corporation (ARC) in USA and combines this with data directly
submitted by airlines via their revenue accounting systems!
!
DDS gives airlines unprecedented visibility into ticket sales across
all geographic regions—including both airline direct and indirect
(agent) distribution channels. As an all-in-one comprehensive
source, Direct Data Solutions gives users exclusive data that
provides deep insight on a scale not offered anywhere else.!
!
Direct Data Solutions could not exist without airline cooperation and
commitment. To have access to another carriers' data, a carrier
must contribute and release its data to be disclosed to fellow Direct
Data Solutions participants.

https://www.youtube.com/watch?time_continue=23&v=TaciOCSWfhA
Examples of Airline 3rd Party Data
!
OAG maintains a flight status and day-of-travel database in the aviation
market and provides analytical tools to assess air travel trends!
!
Example Data and Tools include :!
Flight Schedules!
Flight Status!
Traffic Analyser!
On Time Performance!
Route Mapper!
Flight Information Displays (FIDS)
Examples of Airline 3rd Party Data
!
Cirium is the new umbrella brand for a
number of products previously operating
under different brand names, before
they were bought!
!
These include FlightGlobal, FlightStats,
Ascend, Diio and Innovata!
!
The main product used by airlines is the
flight schedule tool (previously
Innovata), which gives detailed
information about competitor networks
Examples of Airline 3rd Party Data
!
There are many other sources of third party data used by airlines, including:!
!
Economic Data! ! ! Sources : IATA, Oxford Economics, World Bank, Census!
!
Airport Data! ! ! Sources : IATA, ACI!
!
Cargo Data! ! ! Sources : ACD, IATA!
!
Industry Forecasts! ! Sources : IATA, CAPA, Boeing, Airbus!
!
Competitor Fares! ! Sources : InFare!
!
Search Data! ! ! Sources : Google, Expedia, Skyscanner!
!
Tourism Data! ! ! Sources : Tourism Councils, DoT
How do airline network planners use these
data tools?
!
High Level!
!
1.!Determine Market Size for pax (and cargo)!
2. What revenue can we expect by segments!
3. What is the market stimulation / growth!
4. What is market competitor situation
Ethics issues in doing marketing research!
▪ Ethics considerations in doing research !
!
▪ Intrusions on consumer privacy !
▪ Privacy legislation being strengthened to protect personal information !
▪ People feel offended when being asked personal information !
!
▪ Misuse of research findings !
▪ Say one objective, but used for another !
!
▪ Codes of practice!
▪ Legislation in EU: International Code of Marketing and Social Research Practice.
Requiring the researchers to make their names and addresses available to
participants. !
▪ In Australia: The Australian Market and Social Research Society updated its
code of practice. !
▪ Swinburne: http://www.swinburne.edu.au/research/ethics/human-research/
Summary !
➢ What is a Marketing Information System (MIS)!
➢ Importance of MIS !
➢ Data Classification! !
➢First Party!
➢Second Party!
➢Third Party !
➢ Example Data sources used by Airlines!
➢ How do airline network planners use these data tools?!
➢ Ethics issues in data collection / use