IDEAS home Printed from https://ideas.repec.org/a/eee/jaitra/v67y2018icp19-33.html
   My bibliography  Save this article

Airline customer lifetime value estimation using data analytics supported by social network information

Author

Listed:
  • Çavdar, Ahmet Birol
  • FerhatosmanoÄŸlu, Nilgün

Abstract

Companies can improve their customer relationships and business performance via analytical applications such as estimation of customer lifetime value (CLV) and profitability, customer profiling and classification, customer retention and churn analyses. Customer Relationship Management (CRM) tools can now have access to relationship and interaction data of the customers, besides the traditional data sets such as billing information. While there has been a sharp increase in mining social and interaction data, integration of this information with the current data analytical models is limited. In this paper, we develop a new model for estimating the customer lifetime value in airline industry that integrates customers' social network and flight information. We first adopt a regression model for airline customers that can be used to estimate their CLVs. We then present a methodology to enhance this base model with customers' social network information to incorporate indirect contributions the customers make. We compare the performances of both models to show that our proposed method may improve the accuracy and reliability of models that make use of only flight related factors. We provide examples to potential customer analyses using our models for use by airline CRM applications.

Suggested Citation

  • Çavdar, Ahmet Birol & FerhatosmanoÄŸlu, Nilgün, 2018. "Airline customer lifetime value estimation using data analytics supported by social network information," Journal of Air Transport Management, Elsevier, vol. 67(C), pages 19-33.
    • Handle: RePEc:eee:jaitra:v:67:y:2018:i:c:p:19-33
    DOI: 10.1016/j.jairtraman.2017.10.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969699716303921
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jairtraman.2017.10.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stephen Eubank & Hasan Guclu & V. S. Anil Kumar & Madhav V. Marathe & Aravind Srinivasan & Zoltán Toroczkai & Nan Wang, 2004. "Modelling disease outbreaks in realistic urban social networks," Nature, Nature, vol. 429(6988), pages 180-184, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adela-Laura POPA & Dinu Vlad SASU & Teodora Mihaela TARCZA, 2021. "Investigating The Importance Of Customer Lifetime Value In Modern Marketing - A Literature Review," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 30(2), pages 410-416, December.
    2. Kaya, Gizem & Aydın, Umut & Karadayı, Melis Almula & Ülengin, Füsun & Ülengin, Burç & İçken, Ayhan, 2022. "Integrated methodology for evaluating the efficiency of airports: A case study in Turkey," Transport Policy, Elsevier, vol. 127(C), pages 31-47.
    3. Tu Van Binh & Ngo Giang Thy & Ho Thi Nam Phuong, 2021. "Measure of CLV Toward Market Segmentation Approach in the Telecommunication Sector (Vietnam)," SAGE Open, , vol. 11(2), pages 21582440211, June.
    4. Aydın, Umut & Karadayi, Melis Almula & Ülengin, Füsun, 2020. "How efficient airways act as role models and in what dimensions? A superefficiency DEA model enhanced by social network analysis," Journal of Air Transport Management, Elsevier, vol. 82(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Floriana Gargiulo & Sônia Ternes & Sylvie Huet & Guillaume Deffuant, 2010. "An Iterative Approach for Generating Statistically Realistic Populations of Households," PLOS ONE, Public Library of Science, vol. 5(1), pages 1-9, January.
    2. Saturnino Luz & Masood Masoodian, 2022. "Exploring Environmental and Geographical Factors Influencing the Spread of Infectious Diseases with Interactive Maps," Sustainability, MDPI, vol. 14(16), pages 1-19, August.
    3. Bisin, Alberto & Moro, Andrea, 2022. "Spatial‐SIR with network structure and behavior: Lockdown rules and the Lucas critique," Journal of Economic Behavior & Organization, Elsevier, vol. 198(C), pages 370-388.
    4. Richard C. Larson, 2007. "Simple Models of Influenza Progression Within a Heterogeneous Population," Operations Research, INFORMS, vol. 55(3), pages 399-412, June.
    5. Askitas, Nikos & Tatsiramos, Konstantinos & Verheyden, Bertrand, 2020. "Lockdown Strategies, Mobility Patterns and COVID-19," IZA Discussion Papers 13293, Institute of Labor Economics (IZA).
    6. Jürgen Hackl & Thibaut Dubernet, 2019. "Epidemic Spreading in Urban Areas Using Agent-Based Transportation Models," Future Internet, MDPI, vol. 11(4), pages 1-14, April.
    7. Hyeyoung Kim & Ningchuan Xiao & Mark Moritz & Rebecca Garabed & Laura W. Pomeroy, 2016. "Simulating the Transmission of Foot-And-Mouth Disease Among Mobile Herds in the Far North Region, Cameroon," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 19(2), pages 1-6.
    8. Yeran Sun & Hongchao Fan & Ming Li & Alexander Zipf, 2016. "Identifying the city center using human travel flows generated from location-based social networking data," Environment and Planning B, , vol. 43(3), pages 480-498, May.
    9. Kuo-Ying Wang, 2014. "How Change of Public Transportation Usage Reveals Fear of the SARS Virus in a City," PLOS ONE, Public Library of Science, vol. 9(3), pages 1-10, March.
    10. Stipic, Dorian & Bradac, Mislav & Lipic, Tomislav & Podobnik, Boris, 2021. "Effects of quarantine disobedience and mobility restrictions on COVID-19 pandemic waves in dynamical networks," Chaos, Solitons & Fractals, Elsevier, vol. 150(C).
    11. Bisin, Alberto & Moro, Andrea, 2022. "JUE insight: Learning epidemiology by doing: The empirical implications of a Spatial-SIR model with behavioral responses," Journal of Urban Economics, Elsevier, vol. 127(C).
    12. Wenting Yang & Jiantong Zhang & Ruolin Ma, 2020. "The Prediction of Infectious Diseases: A Bibliometric Analysis," IJERPH, MDPI, vol. 17(17), pages 1-19, August.
    13. Tayo Alex Adekiya & Raphael Taiwo Aruleba & Babatunji Emmanuel Oyinloye & Kazeem Oare Okosun & Abidemi Paul Kappo, 2019. "The Effect of Climate Change and the Snail-Schistosome Cycle in Transmission and Bio-Control of Schistosomiasis in Sub-Saharan Africa," IJERPH, MDPI, vol. 17(1), pages 1-22, December.
    14. Rezapour, Shabnam & Baghaian, Atefe & Naderi, Nazanin & Sarmiento, Juan P., 2023. "Infection transmission and prevention in metropolises with heterogeneous and dynamic populations," European Journal of Operational Research, Elsevier, vol. 304(1), pages 113-138.
    15. He, Pan & Lovo, Stefania & Veronesi, Marcella, 2022. "Social networks and renewable energy technology adoption: Empirical evidence from biogas adoption in China," Energy Economics, Elsevier, vol. 106(C).
    16. Jayanthi Rajarethinam & Janet Ong & Shi-Hui Lim & Yu-Heng Tay & Wacha Bounliphone & Chee-Seng Chong & Grace Yap & Lee-Ching Ng, 2019. "Using Human Movement Data to Identify Potential Areas of Zika Transmission: Case Study of the Largest Zika Cluster in Singapore," IJERPH, MDPI, vol. 16(5), pages 1-13, March.
    17. Michał Wielechowski & Katarzyna Czech & Łukasz Grzęda, 2020. "Decline in Mobility: Public Transport in Poland in the time of the COVID-19 Pandemic," Economies, MDPI, vol. 8(4), pages 1-24, September.
    18. Burris, Courtney & Nikolaev, Alexander & Zhong, Shiran & Bian, Ling, 2021. "Network effects in influenza spread: The impact of mobility and socio-economic factors," Socio-Economic Planning Sciences, Elsevier, vol. 78(C).
    19. Zhou Huang & Ganmin Yin & Xia Peng & Xiao Zhou & Quanhua Dong, 2023. "Quantifying the environmental characteristics influencing the attractiveness of commercial agglomerations with big geo-data," Environment and Planning B, , vol. 50(9), pages 2470-2490, November.
    20. Jamie Bedson & Laura A. Skrip & Danielle Pedi & Sharon Abramowitz & Simone Carter & Mohamed F. Jalloh & Sebastian Funk & Nina Gobat & Tamara Giles-Vernick & Gerardo Chowell & João Rangel Almeida & Ran, 2021. "A review and agenda for integrated disease models including social and behavioural factors," Nature Human Behaviour, Nature, vol. 5(7), pages 834-846, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jaitra:v:67:y:2018:i:c:p:19-33. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/journal-of-air-transport-management/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.