Jane is a consultant and frequent traveler. She’s loyal to one particular airline. This week when her travel was disrupted due to inclement weather in chicago, the airline failed to support her attempts to rebook on her laptop and mobile phone.Two types of cognitive learning in the middle of it all (and ironically), she received an email from the airline pitching vacations to mexico. Frustrated, she told her story to friends on social media and wondered whether her loyalty was really appreciated.Two types of cognitive learning could “her” airline really support travel on her terms?

The fundamental truth and challenge facing every business today is that people buy experiences, not products.Two types of cognitive learning businesses across all industries must deliver great, personalized experiences to win in an increasingly competitive world. Doing so involves operating with a subscription service mindset, knowing that customers can choose to renew or cancel with every click.Two types of cognitive learning it also means transforming how you operate as an enterprise–being always-on, knowing the past, and anticipating the future–across every device, channel, and moment.Two types of cognitive learning

Correctly pricing ancillary choices, such as checked baggage options and preferred seating, is already critical to the success of most of today’s airlines.Two types of cognitive learning the skift/amadeus airline survey found that 93% of airline leaders regarded pricing choices as very important or critical to their businesses, 19% said they’ve already started work on ancillary price optimization, and 62% responded they would do so between 2019 and 2020.Two types of cognitive learning

For example, gen Z (24 years old and younger) approaches travel as a series of decisions to be made and executed in the moment and while on the go.Two types of cognitive learning as such, they have an appetite for mobile apps and tools to aid in trip budgeting, planning, and organization. Integrating these services in an “on the go” functionality should be a priority for travel brands looking to differentiate themselves in this increasingly competitive industry.Two types of cognitive learning

1. Mixed bundling: mixed bundling allows customers to choose among different product packages, such as one that includes flexible seating, checked bag, and seat selection, for one set price.Two types of cognitive learning they can choose items individually, too. This approach is not unlike meal options at fast food chains, where customers can buy, for example, a value meal #1, value meal #2, just a hamburger, just fries, or a hamburger and fries.Two types of cognitive learning

In recent years, a growing number of airlines have shifted toward this mixed-bundling approach. One pioneer is frontier airlines. When the carrier first launched its mixed bundling strategy in 2015, travel industry analyst henry harteveldt of atmosphere research told USA today: “frontier may raise more than a few eyebrows with this [bundle] offering.Two types of cognitive learning but they’ve included services that travelers appreciate, the savings are quite substantial, and it’s a great tool for families and business travelers. [customized offers] could help frontier attract more customers to the airline.”

two types of cognitive learning

3. Subscriptions: the concept of subscriptions is yet another time-tested pricing strategy. One forward-thinking airline has had some successes with it already.Two types of cognitive learning surf air, a commuter airline based in california, targets business travelers with a flat, monthly subscription for unlimited flights. The subscription approach allows the company to offer a straightforward price that’s appealing to its most lucrative customers.Two types of cognitive learning

Given gen Z’s overall interest in services that include both planning and budgeting for trips, this strategy could work for other airlines, as well.Two types of cognitive learning according to adobe’s report, almost 55% of gen Z is looking for a trip-budgeting tool or app to help them determine how much they will need to spend, while 46% would like a trip-planning tool or app that allows them to book, track, and manage their full trip in one place.Two types of cognitive learning

Personalization must be properly contextualized to be successful. These days, travel brands can do so by harnessing artificial intelligence (AI) and push toward active differentiation in this still-nascent area for the industry.Two types of cognitive learning personalization based on preferences is familiar and important across the generations. However, activating it invisibly and in the moment via mobile with location-based services is where gen Z, in particular, can be won over. This generation, more than any other, understands the power of technology to surface relevant information when needed–minimizing the user’s burden and maximizing discovery.Two types of cognitive learning

1. Location for real time: in travel, the customer journey is literal and not linear. It’s the one industry where a customer journey isn’t merely a model to understand customers over time—it’s a real thing people do.Two types of cognitive learning this means mobility and geolocation are more central to personalization than in any other industry, and contextual cues are critical as customers discover, plan, book, enjoy, and share throughout the journey.Two types of cognitive learning forty-six percent of gen Z is looking for “in the moment” location-based discounts, and 51% are looking for location-based activity suggestions.Two types of cognitive learning

2. Machine learning and AI to drive scale: AI-driven real-time analytics engines can learn customer preferences—not only basic “likes this but not this” characteristics, but specifics relevant to a particular moment in the travel journey or even predictive of what that traveler may want in the near future.Two types of cognitive learning for example, search can inform the next best offer or action based on behavioral information from previous interactions, as well as modify the experience a customer receives when landing on a digital channel.Two types of cognitive learning

“newer pricing models could influence these savvy travelers positively as they are the most open to new services and offerings,” adobe’s hoffman said.Two types of cognitive learning “the most critical outtake is that contextual personalization for on the go and in the moment experiences will become the norm. All brands need to garner AI/ML in coordination with data to activate.”