Data, dashboards, discipline and determination...
- Jan Sander Jakobsen
- Feb 14, 2020
- 4 min read
How transaction level data, custom analytics and continuous improvement boosted IFR growth at Thomas Cook Airlines UK
By Jan Sander Jakobsen, Principal Partner. Head of In-Flight Retail, Thomas Cook Airlines UK (2015 -2019)
Between 2015 and 2019 the Thomas Cook Airlines IFR Team delivered outstanding growth
to an already industry-leading Spend-per-Head. In a series of posts the strategy and methodologies for breaking barriers to SPH growth are revisited with the expectation that the learnings may be relevant to IFR executives.
This post examines how the TC IFR team, armed with rich transaction data from a new integrated Point-of-Sale (POS) system, was able to enhance sales efficiency on-board, enable consistent operational execution and continuously improve key underlying processes.
The business and operations were benefitting from the effects of reaching the higher tiers of the IFR Value Pyramid and practising Continuous Improvement. The key driver of this process was the active use of complete and accurate transaction level sales data.
The committed effort led to sales growth, higher motivation among cabin crew and improved customer satisfaction scores. This was achieved while simultaneously adding a new pre-order distribution channel and reducing the bar-loading footprint significantly.
Once the new POS system was fully implemented, and strong processes for validation of data in place, a business intelligence module allowed exploration of data that could objectively confirm anecdotal indications of areas needing attention. Achieving a stable flow of complete and accurate data was in all truth a greater challenge than expected for the organisation and learnings from the sourcing, scoping and implementation of a new POS system will be the topic of a separate post.
Having explored the available data and defined the desired commercial outcomes, custom analytical models and BI dashboards were specifically tailored to monitor and share progress towards key objectives. It is critical to success that the designs take business specific practical factors into account and combine the need for dynamic analysis and efficient production of highly targeted communications.
Developing the business intelligence report suite was an ongoing process but with the easier access to raw data, prototype models could be created in other applications and road-tested for future integration into the suite. Focus was on producing rapid results rather than go through
a more conventional development cycle.
Traditionally IFR executives have relied on anecdotal information about sales activities on-board from aggregated sales data and thousands of flight reports. Consolidated data provide little insight to flight level activity, deviations from planned activities or the magnitude and financial impact of ongoing issues. Subjective feedback is unlikely to provide the basis for good decisions.. With transaction level data available it is possible to monitor activities in detail across thousands of flights and access detailed views when needed to identify and address barriers to consistency and growth.
One of the powerful new operational visualization tools created was a transaction intensity map that aided the dialogue on what best practise and success criteria were and how to achieve it consistently. The profiles of multiple comparable sectors could be compared, and execution of duties could be tracked.
Analysing comparable sectors at transaction level revealed that the 10% poorest performing sectors shared some common traits. Sales sometimes started late, was very slow or agreed sales activities were not conducted. The underlying reasons cannot be immediately discerned from transaction data and there are of course any number of reasonable causes such as medical emergencies, lack of products etc. but the increased dialogue
nevertheless, had a rapid effect on reducing the number of severely underperforming flights and the combined direct impact was a 2-3% lift in total average SPH.
Key stakeholders require different perspectives of information. The TC IFR team introduced new strategic level updates for board level executives as well as senior cabin crew management.
Base-supervisors received regular tailored updates with intuitively actionable operational perspectives that could easily be viewed directly from the screen of a smartphone and shared with staff on the go. Service levels of key suppliers were also monitored closely. Careful design allowed efficient production of frequent updates to stimulate constructive dialogue and keep focus on challenges.
The empowerment of Base Management teams to engage with staff based on detailed views of the performance of their teams was fundamental to the results created. The highly specific locally relevant feedback was welcomed as it aided their daily work in managing/coaching individuals and teams of crew.
Others were scenario models quantifying the annualized value of discreet sales activities potentially being missed and a prototype Service Delivery Score that graded on multiple measures.
The improved access to data also allowed for further development to a model for mapping the optimal loads by product based on an normal distribution based availability target and actual sector level load and sales figures. This model had over some years enabled dramatic reductions in load by using objective data from all prouced fligths.
Using transaction data actively to drive SPH towards its potential provided a strong framework for positive engagement with crew and suppliers about barriers to growth. Working on overcoming them together in a prioritized manner took the Thomas Cook Airlines IFR business to the higher tiers in the IFR Value Pyramid and established profitable practise of Continuous Improvement
IFR Partners Ltd. is an independent partner to airlines that are looking to maximise the utility of their IFR business and specializes in identifying barriers to growth and assisting airlines to overcome them in an effective way with high NPV. The approach is to adjust the existing set-up for quick wins and if needed applying a strategic view to a future model.
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