Air France-KLM continues investment in data with €200m planned by 2020

Air France-KLM plans to invest more than €200 million on digital and data development by 2020 with a priority on better use of its data.

The group says it has had an internal “Big Data Platform” since 2015 and last year connected to all of its customer data sources to get a rounded view of customers and develop personalised services.

Speaking during the group’s full-year 2016 results presentation to analysts, CEO Jean-Marc Janaillac said Air France-KLM is now one of a few companies in the world which collect and use online and offline customer data to make personalised offers.

The group says it has been increasing digital and big data investment by about 15% every year since 2013 with last year’s investment standing at €55 million.

The airline group expects to reap €200 million in additional revenue over the same period.

Janaillac says:

“It’s going to be our priority and and quite important in terms of revenues because we do think that this possibility to have a personal link with customers will enable us to get €200 million in additional revenue.”

The latest ancillary revenue report from Ideaworks and Cartrawler estimated airlines would earn $67.6 billion in ancillary revenue in 2016.

Responding to a question about adjusting distribution channels to continue digital growth, Janaillac says the airlines want to be able treat passengers in a different way as it currently does through the GDS and that it is working on IATA’s NDC standard.

Air France-KLM reported €5 billion in online sales in 2016 and has been seeing an average annual increase of  7%.

Further digital milestones for the group in 2016 include 56% of passengers now interacting via mobile and one-in-three tickets sold via its AF.com and klm.com websites.

For the year, the group reported operating income of €1.049 billion million. The group carried 93.4 million passengers, a 4% increase on the previous year.

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About the Writer :: Linda Fox

Linda is Managing Editor for tnooz. For the past decade, she has worked as a freelance journalist across a range of B2B titles including Travolution, ABTA Magazine, Travelmole and the Business Travel Magazine. In this time she has also undertaken corporate projects for a number of high profile travel technology, travel management, and research companies. Prior to her freelance career, she covered hotels and technology news for Travel Trade Gazette for seven years. Linda joined TTG from Caterer & Hotelkeeper where she worked on the features desk for more than five years.

 

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  1. Gregoire Landreau

    Impressive investment on key topics for the battle for the customer! I am curious to know what this budget means in terms of concrete actions and innovations. What benefits can AF-KLM’s customers expect from it?

     
 
 

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