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Business

Budget airlines make "big data" bet

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Business

Budget airlines make "big data" bet

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00:00:01
>> Europe's low cost airlines used to mock air miles programs as expensive relics of a bygone era. But as personalized customer data emerges as the next frontier for the industry, they're scrambling to catch up. Reuters Ireland correspondent Conor Humphries says budget airlines have missed a trick.>> While they were slashing costs over the last couple of decades, they managed to close down whatever customer loyalties schemes they had.
00:00:28
What's become clear since the rise of Google and Amazon is that this customer data that you can get through these kind of schemes is massively valuable.>> Airline chiefs now in a race to ape the success of retail giants like Amazon, budget carriers are moving away from treating the travel experience as a commodity.
00:00:46
Instead, they want to use data to create a more personalized experience, including highly targeted adverts for all those optional extras>> Baggage allowance, window seats, fast track security will provide far higher margins than regular ticket sales.>> What they've realized is that they're just not selling very well because they don't know their customers.
00:01:07
They're offering at maybe somebody who maybe doesn't know how to drive or somebody who's traveling to the center of London, they're offering them car hire which they're never gonna want.>> Ryanair, Europe's largest carrier, has hired hundreds of IT staff to rebuild its online offering. It's promising a major push to get its tens of millions of customers to register their data.
00:01:27
Number two carrier, Easy Jet, says it plans to one click sales based on deep personalization. Flyers can hope that travel will stay cheap but get a little more cheerful.