Cathay Pacific Airways Limited Hong Kong Dragon Airlines Limited

Connie Chan (connie_m_chan@cathaypacific.com)

Assistant Manager Analytics, Digital Retail Cathay Pacific Airways

IBM Amplify 2015 Conference (CDA-1261)

Cathay Pacific Using Digital Analytics to Drive

Global Customer Centric Insights

ü  About Cathay Pacific

ü  Shaping the Digital Retail Experience

ü  Our Key Challenges

ü  How Digital Analytics helped to improve our business

Agenda

About Cathay Pacific

Road Warrior – Life Well Travelled – Cathay Pacific http://www.youtube.com/cathaypacific

#LifeWellTravelled

Continually strive to enhance the overall travel experience:

ü  To be more personable in our service

ü  More considered in our design

ü  More intuitive in anticipating customer needs

ü  Helping make the customer journey more pleasurable

In the air We are serving 189 destinations across 15 territories with 2 carrier brands – Cathay Pacific & Dragonair

Over the Internet We serve 58 country sites in 13 languages, handling millions of transactions in 25+ different currencies

On the go Mobile app provide wide range of manage booking services

Our Online Connections Paid media (SEM, Banner Ads), Newsletters, facebook, Twitter, LinkedIn, Instagram, Pinterest, Weibo, Wechat, Flight messaging (SMS)…

Shaping the Digital Retail Experience

Digital Retail is more than flight tickets

ü  Enriched content - Online Travel guides

ü  Variety of products

ª  Travel Packages and hotels

ª  Extra legroom, excess baggage, cabin upgrade, meal upgrade

ª  Train, event, theme park tickets

ü  Online Services – Ticket schedule change, Check-in, Mobile boarding pass

Cathay Pacific Online Travel Experience

Research & Shopping

Checkout & Fulfillment

Pre-flight & Travel

Digital Analytics aims at driving insights with focus on

•  Designing an optimal and personable travel experience

•  Improving customer engagement in using Cathay

Pacific platforms as their online travel partner

•  Identifying opportunities to increase sales conversion

and optimize online self-service for cost saving

Our Key Challenges

Our Key Challenges

ü  Variety of services and products in our website and mobile app

ü  Cross-country analysis on online sales and servicing performance

ü  Highly seasonal business

ü  Market driven fare with complex revenue model

Variety of services & products in our website & mobile app analysis on sales performance of flight tickets, travel packages & ancillary products, and servicing platforms of the customer travel journey

Cross-country analysis

How many of the travelers located in

China buy a ticket departing from

Shanghai through the China - Chinese

language website?

Highly seasonal business

Sales trend of US site

Sales trend of China site

Market driven fare with complex revenue model

How Digital Analytics helped to improve our business

Focus areas for Cathay Pacific

ü  Focus on online travel experience analysis

ü  Cathay Pacific mobile app re-design challenges

Digital Analytics Process

Define business objectives

Setup KPIs

Data collection and tracking

Data Analysis

Insights & Recommendations

Actions to improve

Focus on online travel experience analysis

Research & Shopping

Checkout & Fulfillment

Pre-flight & Travel

•  Ease of use in findings promotion offers •  Content and product search preferences

•  Booking funnel analysis •  Booking and payment system performance

•  Travel tips content consumption •  Servicing system performance, e.g. system errors •  Ancillary sales opportunities

Areas of focus

Content optimization – what to promote?

Research & Shopping

ü Find out the most attractive types of offer

ü Provide customized content

with historical findings to improve sales conversion

ü Change the position of the promotion offer content in the homepage

Click-through rates of the homepage banners

Research & Shopping

Are we inspiring our customers with holiday ideas?

Research & Shopping

ü Pick most attractive theme to design the newsletter or promote in the homepage

ü Use as the keyword for SEO

and paid media

ü Optimize the recommendation panel by changing the text of the “under-performed” options

Find out customers’ interests

Research & Shopping

Identify opportunities for Upsell

ü Understand why customer

choose to pay more. Highlight

the popular benefits in

attracting the customer to

choose the best fare for them

ü Simplify fare structure to

provide the most-welcomed

fare options for the customers

Checkout & Fulfillment

Understand where the upsell happens

Checkout & Fulfillment

Sales Recovery for cart abandonment

Checkout & Fulfillment

ü Send retarget email to customer in calling our ticketing center to continue the booking

Why customer abandon the booking?

Checkout & Fulfillment

ü  Payment error

Cathay Pacific mobile app re-design challenges

Is mobile app an opportunity for Cathay Pacific?

ü  Increasing trend in website traffic coming from mobile phones

ü  Mobile Phone sales conversion rate remains lower than that of Tablet

What system should be supported by the mobile app?

ü We need a development platform that supports both iOS and Android

Is it needed for all language versions?

ü  Both English and Chinese need to be available in the first version

What functions should be available for managing bookings with the mobile app?

ü Redesign the manage booking

interface to display the most popular

function

ü  Identify possible spaces for upsell

and cross-sell

Popular manage booking functions

Top function in terms of click is update contact Top function in terms of completion, it is change seat

Should mobile app allow booking for complex itinerary?

ü We may not need to design the

booking flow in mobile app for

complex itinerary at the first

place, as its sales % share is

relatively low online

Digital Analytics across the board

We are keen on building online customer journey profiles with digital analytics, with the complexity in managing multiple brands, countries, variety of products & services, different languages and currencies, cross-platforms, etc.