Mercator Asia
Mercator Asia
Blog Post
  • Airlines are evolving at an unprecedented rate. In recent years, the use of new technologies, a push toward centralized planning, and the entrance of new industry players have drastically changed how airlines operate from even a decade ago.

Mercator Asia
Mercator Asia
Blog Post
  • Steady growth in cargo operations, the addition of wide-body Airbus 350s, the opening of the COOL terminal, and the introduction of state-of-the-art cargo management and automated handling systems all inside one year means new business opportunity for Finnair Cargo.  

Mercator Asia
Mercator Asia
Blog Post
Mercator Asia
Mercator Asia
Blog Post
  • Air cargo has transformed the transportation of goods and, by extension, the global economy. Yet, customs and border delays are costly for air cargo and can impede their key advantage: speed. The industry has been pressed to find solutions to resolve these challenges and has made steady progress in recent years.

Mercator Asia
Mercator Asia
Blog Post
  • Worldpay published the Global Payments Report 2017, which highlights a crucial industry trend: By 2021, credit cards in the Asia-Pacific (APAC) region will make up only 10 percent of transactions. However, bank transfers and eWallets - clubbed together as AFOPs - will make up close to 67 percent of all online transactions in the region.

Mercator Asia
Mercator Asia
Blog Post
  • Every day, airlines generate an immense amount of commercial sales data. This data is valuable; properly implemented with analytics tools, it can be used to maximize revenue, reduce costs, and stay ahead of the curve in this highly competitive industry. In addition, with a smart strategy, airlines can leverage data in meaningful ways and devise more effective sales campaigns. 

Mercator Asia
Mercator Asia
Blog Post
  • The fundamental requirements to meet customer needs in e-travel distribution are changing dramatically.  E-travel distribution has been built around three features for decades:  Consistency, Accuracy and Completeness.  In the case of airline travel, for example:

Mercator Asia
Mercator Asia
Blog Post
  • Messaging was the natural successor for replacing air cargo paper documents. But as a paradigm, does it miss the efficiency afforded by centralized data architectures? Stakeholders across the air cargo supply chain need to embrace a data-centric vision to increase efficiency, accuracy, and control within the industry. 

Mercator Asia
Mercator Asia
Blog Post
  • Revenue Management, or the sophisticated dynamic pricing algorithms used by airlines, is considered a science.  RM taps into large historic databases, it builds regression-based forecast models, and it calculates probabilities across demand levels to optimize the number of seats allocated to each group of fares.  Analytically, it determines how many $99 tickets to sell and how many sea...

Mercator Asia
Mercator Asia
Blog Post
  • The airline industry has been at the cutting edge of digital disruption for years. Modern factors, like evolving customer needs and competition from new entrants, are changing the ways airlines do business. In fact, they stand to put airlines at risk of becoming commodity seat providers.

Mercator Asia
Mercator Asia
Blog Post
  • As the finance function moves further into the digital era, one of the biggest questions CFOs are asking is, “Are we ready?” Advancements in technology and data proliferation have reshaped the role of the airline finance function. As airlines face increasing competition and ongoing change, they expect finance to leverage technology and turn data into insights they can use to guide stra...

Mercator Asia
Mercator Asia
Blog Post
  • Airlines have highly complex transaction lifecycles. They span multiple sales channels, countries, currencies, payment methods, and intermediaries. How do you manage payments and reconciliations across such a diverse landscape? You need resource allocation and departmental synergies on a massive scale. 

Mercator Asia
Mercator Asia
Blog Post
  • Articulated robots are not new; they’ve been used in automotive assembly plants since the 1970’s. For the air cargo industry, however, they represent a major shift towards a more automated and sophisticated future. But why has the industry taken so long to implement robotics? It boils down to need. Air cargo is growing into a more complicated and time-sensitive market. As such, robotic...

Mercator Asia
Mercator Asia
Blog Post
  • For decades, airlines relied on an irreplaceable partner: travel agents. Agents provide clients with the connections, expertise, and advice needed to plan their travel while airlines provided agents with exclusive commissions and discounts. The partnership allowed both entities to thrive.

Mercator Asia
Mercator Asia
Blog Post
  • Say you work in an airline’s revenue management department.  And for key flights departing on the past three Fridays, high fare bookings are up 25%, 30%, and 45% respectively over the model forecast.  How many more seats will the model hold for full fare bookings next Friday?

Mercator Asia
Mercator Asia
Blog Post
  • Digital disruption is hot topic in the aviation industry today. Airlines are facing a rapidly changing landscape, from increasing on-demand customer services to streamlined operations with new technology. Today's industry leaders see digital disruption as a way to improve their capabilities and the experiences they deliver. At a recent industry conference, Aviation Festival Europe, the...

Mercator Asia
Mercator Asia
Blog Post
  • The Impact of Loyalty Programs on Airline Finance Across the globe, airline Frequent Flyer Programs (FFP) are changing. Airlines are looking to move away from traditional distance and RBD-based programs to ones that reward customers based on their spending. The shift has been warranted by two factors: the desire to reward high-value customers and the need to reduce accounting liabilit...

Mercator Asia
Mercator Asia
Blog Post
  • Reporting has been a challenge for providers of airline dynamic pricing (“revenue management”) systems from the initial launch of the systems decades ago. Naturally, dynamic pricing systems initially focused on their proprietary models often hidden behind complex algorithms, and business reporting seemed an afterthought. Somewhat slowly, vendors supplemented their systems with reports ...

Mercator Asia
Mercator Asia
Blog Post
  • Blockchain technology is transforming the way we think about security and accountability. From finance to online shopping, it’s quickly breaking into a wide range industries. Air cargo is no different. In fact, the ability for blockchains to leave a permanent record of all activity across different variables makes it the perfect fit for air cargo.

Mercator Asia
Mercator Asia
Blog Post
  • As of autumn 2017, the market value of Priceline exceeds $90 billion. At the same time, the world’s most valuable airline, Delta Airlines, has a market cap of just over $34 billion. How have third-party platforms become so valuable?

Mercator Asia
Mercator Asia
Blog Post
  • Consider this: Cards are a preferred method of payment in the airline industry, representing between 40–50% of all transactions. But while cards have brought a world of convenience to air travelers, they pose unique challenges to airlines. As the use of cards for payments grows, airlines have to deal with an increasing number of fraudulent chargebacks. With such an immense amount of mo...

Mercator Asia
Mercator Asia
Blog Post
  • In the first decade of operations, Airbnb reached a market value of $31 billion. The tech giant has been able to achieve hockey stick-like growth because they offer a superior experience to traditional hotels. You can even interact directly with hosts, making it feel like you’re just staying at a friend’s place.

Mercator Asia
Mercator Asia
Blog Post
  • Dynamic pricing has gotten extremely sophisticated – and complicated. For airlines, dynamic pricing relies on a series of algorithms to determine the optimal number of seats to be allocated to different fares or fare classes. The algorithms are generally not completely transparent, and there are literally millions of calculations that are updated nightly to insure allocations remain up...

Mercator Asia
Mercator Asia
Blog Post
  • The rise of big data has profoundly reshaped parts of the global economy. And thanks to innovative advances such as the Internet of Things, we are redefining how apps, devices and people interact and connect with each other. These advances have the potential to change the way we do business in profound ways.

Mercator Asia
Mercator Asia
Blog Post
  • On almost any commercial flight, you’re likely to see a credit card reader somewhere on your seat or the seat in front of you. When the flight attendants come around offering premium snack boxes and drinks, they too will be toting a credit card reader of some kind.

Mercator Asia
Mercator Asia
Blog Post
  • A recent study by airline revenue management experts simulated adopting a form of more personalized airline pricing (“Dynamic Availability of Fare Products with Knowledge of Customer Characteristics” by Wittman and Belobaba in the April 2017 issue of the Journal of Revenue and Pricing Management). Increased personalization is a hot topic for airlines and all e-merchandisers, and so man...

Mercator Asia
Mercator Asia
Blog Post
  • The often volatile air cargo industry is now seeing significant growth in cross-border e-commerce trade. This could very well transform air cargo, guaranteeing a future for the industry. However, as IATA Global Head of Cargo, Glyn Hughes, said in 2015––when the industry had first experienced consistent growth––“The industry cannot use these figures as an excuse to stand still. A compre...

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