of Airlines, Technology & Marketing [1 of 3]

Abstract


In this report to management considerations of technology and marketing are blended together and reviewed vis-à-vis American Airlines (AMR Corporation).



Introduction

As a legacy carrier, and the largest airline in the United States, American Airlines has a tendency to market within a range of expression characterized as conservative. It has been many decades since any need to establish itself, and it certainly does not need to "play games" (attempting to pursue its own "long tail" (Anderson, 2006)). American Airlines "plays" at the core of its industry.

Indeed, in recent decades American Airlines has consciously pursued its higher end consumer (business class). This was so much the case that until recently it began to gain myopic strength (as expressed through what little print media it took on; Smithsonian magazine, the Atlantic, etc.) (“Inside (AA’s) Market Strategy“, 2007). However, being the hyper vigilant stalwart that it is, American Airlines has caught its drift before any real acknowledgment in the culture and shifted to a holistic consumer centric marketing perspective (Antidze, 2005).



American Airline’s identifying and targeting market segments

American Airlines has a wealth of opportunity to identify exactly who its consumers are. Ticketing information yields a wealth of specific demographic-based data. Data associated with baggage and passports paired against ticketing information to yield further information, as well as flag any anomalies. Any purchases made by credit card anywhere along the way provide yet another database of information. Every interaction online provides yet another database of personal consumer information. And there are other opportunities to expand communication interactions by developing yet even more databases or database information; surveys, memberships in executive / preferred flyer clubs, in frequent flyer clubs and the like.

As previously stated, American Airlines had for some time had an emphasis on its frequent fliers and its business-class. While no harm had come from this, and was arguably the right thing to do at the time, the airlines has since broadened its vision back to include everyone it services. This is a notable evolution.

Another potentially notable evolution has yet to play out. There is now talk of American Airlines to pursue the acknowledgment that this is, indeed, a global carrier (trans- and international flights accounting for approximately 40% of all its business) (“Inside (AA’s) Market Strategy“, 2007). It will be interesting to see if and how they massage their brand identity expression, given an assured unwillingness to drift too far from center.

If one were to ask, “How well is it using technology to woo new customers and increase market share?” given the colossal size of this multinational corporation the answer would surely be positive. One must assume many dozens, if not hundreds of reports and other expressions of metrics across the VP of Marketing’s desk weekly, therefore remains to be seen the degree to which the technology is actually leveraged. Again, it is likely a safe assumption that movements remain conservative. As it stands, American Airlines hovers somewhere in the balance of tactical (online advertising, direct campaigns to established repeat customers) and branding is its focus.

The reader needs only to look at the current state of airline travel to notice there is a relative enormity of technology that could be and is not integrated. One might argue cost. However, in the great scheme of things one could argue equally that certain enhancements would pay for themselves (and further establish the airline as among those on the cutting edge). Of course, it depends on what the technology is. At this writing 3-D is having a renaissance with moviegoers. However, this writer sees 3-D as a transitional technology, waiting the lowering of cost and the increase in stability and muscularity of holograms. Should this theory bear out, what would be the use of retrofitting a significant number of planes to accommodate 3-D movies? When it comes to what is shown on the monitors as regards flight paths, “where you are now” locators and similar video documentation of the passengers flight experience (as an alternative example) it makes sense to not have that be the entire passenger experience on the monitors. However, if the passenger has a net book or tablet with Wi-Fi, why could they not pick up a constant feed if they so wished? This writer is confident that this would be a low-cost value add. Therefore, there may be technology that is being “left on the table”.