Analysis of airline data to suggest possible ancillary bundles and their respective customer segments

Abstract

PROJECT OBJECTIVE:- To analyse the ancillary purchases of thousands of customers, identify patterns and come up with the lists of ancillaries that can be packaged as a bundle. The project also aims to identify the Customer segments/ Attributes of customers who would buy each bundle. PROCESS FOLLOWED:- We followed a 3-phased process for this project. Phase-I: In this phase, we tried to understand what bundling/unbundling is and why airlines industry is moving towards it. As a part of this secondary research, we went through a multiple online sources and research papers and the insights are discussed later in the report. Phase-II: In this phase, we received the data from Sabre airline solutions. As the data is very crude, we tried to clean it and arranged it in a coherent way that helped the further analysis. Phase-III: This is the major and most important phase of the project. In this phase, we tried to apply various statistical methods to analyse the data, understand and pull out patterns from it. We also tried to bring out the various characteristics of customers buying different ancillaries. SCOPE/LIMITATIONS:- The analysis done in this project has the following boundaries 1. Due to the unavailability of data dictionary, the definitions of various data columns were taken as per the group consensus after discussing with the professor. 2. Though the currency of transaction may affect the purchases, for this project, we considered the effect is not prominent. 3. We have assumed the exchange rates remained mostly stable over the period of data collection.