Almost all of us fly or will fly at some point, whether for work, fun or necessity. And while it may seem simple, choosing the right airline, schedule and price is a challenge!
But what else is behind it, what else influences a traveler to choose one airline over another? The answer is easy: Marketing. And Aeromexico has taken it to another level.
Ok, but how is it done and what does it have to do with Aeromexico’s strategy? Read on to find out, but not before telling a story to give a little context.
Reinventing the travel experience
Do you remember those times without Google Mapswhen traveling was an adventure in itself? Before, the way travelers explored the world was much more complex, adventurers relied on paper guidebooks. In 1900, the Michelin Guide revolutionized the landscape, proving that even the most modest innovation can change the world.
The Michelin Guide not only had maps; it also offered practical advice, from where to refuel to how to change a tire. But what catapulted it to fame were its restaurant reviews by secret critics! Its commitment to quality and improving the traveler’s experience has made it a world reference in global gastronomy.
The story of Michelin, which went from being a travel guide to dictating culinary excellence, reminds us of two things: Every great invention that has transformed the course of history often stems from simple ideas but with the ambition to go further. Putting the customer at the center of innovation is key, and Aeromexico has taken note. By embracing digital transformation, to reinvent the travel experience with the help of technology..
Before takeoff, fasten your seat belt.
Aeromexico, Mexico’s leading airline, connecting more than 21 million passengers a year to 89 destinations around the world. With a fleet of more than 144 aircraft and 518 daily flights, they have put the passenger at the heart of their strategy. Since 2019, they have embraced digital transformation, turning data into valuable information. This allows them to offer safe, comfortable and efficient travel, generating value for both passengers and the business. This has materialized the promise of offering safe, comfortable and efficient travel, generating tangible value for the business from its data.
Aeromexico is always seeking new heights. Its digital ecosystem offers a personalized travel experience, where passengers manage reservations, access real-time information, and resolve queries instantly. In addition, thanks to Digital Spine technology, Aeromexico Digital Spine technology, Aeromexico and Delta Air Lines seamlessly integrate their itineraries, making them pioneers in this area.. This allows them to offer smoother and more comfortable experiences to their passengers.
But in the competitive airline industry, it is not enough to be a leader, you must constantly raise the bar. Aeromexico understood this and set itself an ambitious goal. The challenge is to increase occupancy on all its routes. The challenge of to fill every.was challenge that required impeccable management of its digital marketing campaigns.. They soon discovered that manual operation was an obstacle, so they looked for a more efficient solution.
Amarello the innovation copilot
Like the Michelin Guide, it sought out culinary experts to select the best restaurants. Aeromexico turned to technology specialists to optimize its strategy and meet its objective. They focused their strategy on efficiency, prioritizing business rules and maximizing the use of their data as raw material. This is where we come in, Amarello, and the technological power of Google Cloud. Together, we implemented solutions that allowed the airline to optimize their campaigns and deliver a personalized flight experience for each passenger.
Ensuring a pleasant experience and maximizing flight occupancy requires adapting and aligning the needs of each route with the expectations of each passenger. With a universe of possibilities in every choice, automation is key. We implement Data Driven Decision Making (DDDM) to optimize digital marketing campaigns in a timely, intelligent and efficient manner.
Control tower, we soar to unprecedented heights with Data Analytics
The success of any data analytics, artificial intelligence or machine learning project depends on the quality of the data, its history and freshness, to answer the questions posed by a previously defined analytical model according to the results we want to know, also known as outcome.
Prioritizing security and governance, we use Google Cloud Platform to make data available to build a scalable automation model; ensuring controlled access and information integrity with consistent nomenclatures through a Landing Zone, (not literally of course, but talking about the cloud infrastructure, but the reference is curious).
This approach allowed us to automate the extraction, transformation and cross-referencing of data, integrated through Big Query as a Data Warehouse, allowing us to visualize in real time the performance of each route, identifying opportunities to create and optimize revenue management strategies based on occupancy risk. Revenue Management strategies based on occupancy risk.
The flexibility of Google Cloud allowed us to automate connections with external platforms and incorporate third-party data, enriching the personalization of campaigns across all channels. In addition, we implemented Looker to analyze trends and compare the KPIs results of each campaign and routes that were considered at risk.
Clear skies, AI redefines the flight experience
When it comes to investing in technology projects, a Business Case must be prepared in order to establish an objective return on investment to justify the launch or continuity of the project. to justify the launch or continuity of the project. This is especially complex in analytics projects where adequate tracking can be more complicated, fortunately in this success case the metrics are very transparent.
At just as a pilot uses high-precision instruments to navigate safely; Aeromexico employs the power of AI to achieve more accurate risk segmentation, revolutionizing the way it understands and serves the needs of its passengers, optimizing its digital campaigns, allocating resources more efficiently and effectively.Aeromexico uses AI to optimize its digital campaigns, allocating resources more efficiently, to show each passenger the most attractive options according to their preferences and travel behavior.. Generating dynamic creatives, improving advertising strategies and being more aggressive according to the level of risk, thanks to the activation of Google AI’s Machine Learning.
But how can we be sure that it is a success story, what are the parameters, and is it an exclusive strategy for airlines?
Successful landing: Aeromexico raises ROAS to 35.3x with IA
To better understand this achievement, it is important to delve into some key digital marketing concepts. Aeromexico’s goal was to increase flight occupancy on all its routes., This depends to a large extent on the effectiveness of its digital marketing strategies.. This is where two essential metrics come into play, the Conversion Rate and the ROAS.
When we launch an advertising campaign, our goal is not just to get people to see the ad, but to get them to take a specific action, such as booking a flight.such as booking a flight. This is known as conversion, and the Conversion Rate measures how many of the users actually perform the desired action after interacting with the campaign, in this case we are talking about the purchase or booking of a flight ticket.
Find out now: User Intent!
The automated management of marketing campaigns driven by data-driven decision making, or data drive decision makingThe automated management of marketing campaigns driven by data-driven decision making enabled highly accurate risk segmentation, resulting in a 146% increase in conversion rate at the time of documenting this success story.
The ROAS (Return on Ad Spend) measures the return on advertising spend.measures the profitability of the advertising investment. In simple terms, it indicates how much money is recovered for each peso invested in an advertising campaign. In the case of Aeroméxico, we are talking about a ROAS of 35.3x, i.e. an exceptional return on investment, with a return of 35.3 pesos for every peso invested in an advertising campaign. having a return of 35.3 pesos for every peso invested in advertising, which completes the Conversion Rate and reflects the effectiveness and profitability of this digital transformation.
But speaking of what really matters to us, how much money does this translate into, the increase in occupancy on the Mexican airline’s flights, par excellence, translated into more than $170,000 in additional revenue in the first month. more than $170,000 in additional revenue in the first month. In addition to the financial results, the efficient use of AI has enabled a 60% increase in operational efficiency. This means we can make faster and more accurate decisions, adapting to the changing needs of the market, and therefore taking the lead in the industry.
A journey into the future: Elevating the customer experience in your business
“At Aeromexico we celebrate the success of this project that puts the customer at the center.. We developed an innovative solution with scalable and automatic infrastructure, connecting business information to different tools. AI has allowed us to optimize resources and seek incrementality. At Aeromexico, we are convinced that the future of marketing lies in innovation. and technology.” – Franco Guerrero Vargas, Digital Marketing Director, Aeromexico.
The Aeromexico case is just the beginning! At Amarello, we are experts in taking cloud solutions to the next level. Our team, specialized and experienced in various sectors, is ready to boost your business.
If we help an airline fly high in such a competitive market, can you imagine what we could achieve together?
Don’t be left in doubt! Schedule a free consultation and find out how we can create a digital strategy tailored to your needs. The future of your business is just a click away!
