Turning insights into action

Turning insights into action

Across the airfreight industry, there is undoubtedly significant interest in real-time data. However, while this presents strong potential for the industry, the real question is: what can be done with all that data? Getting real-time data is one challenge, and while it may be feasible, the bigger issue lies in figuring out how to effectively use it once it’s available.

“The key lies in finding the right balance,” Gert-Jan Jansen, Rotate’s founder and Executive Board Member, said. “For instance, when it comes to yield and market information, knowing what happened last week can be quite useful. However, knowing what occurred just two hours ago may be more difficult to act on effectively. “

Forecasting the future remains important. Tracking trends on a weekly basis tends to be far more actionable and meaningful. Carriers need to forecast yields and volumes when planning for the next season, and we are dedicating significant effort to improving our forecasting capabilities.

“We’re seeing success in this area, but the reality is that while forecasting is necessary, it’s equally important to learn from past performance. By balancing both approaches—forecasting and learning from history—we can help airlines navigate this uncertainty more effectively.”

Airline operations

While there is significant focus on real-time data, dynamic pricing, and related technologies in the industry, there is a belief airlines could achieve much more by optimising their midterm planning. For example, airlines should focus on ensuring they’re selling the right routes through a more data-driven approach.

“When I look at airlines, I’d say their ambition to adopt new technologies and make things happen is fairly consistent across the board. Yes, some airlines may push further into technology than others, but that’s not where the main difference lies,” Jansen explained.

“What really sets them apart is their starting point—some airlines are much more advanced in their technology adoption than others. So, while their ambitions are similar, the level of progress varies significantly depending on where they’re coming from. “By applying technology, airlines can determine what portion of their capacity should be allocated to contractors, block space agreements, allotments, and other categories, and what should be reserved for spot rates.

“There is substantial hidden value in midterm planning, route optimisation, and network optimisation, and we believe that focusing on these areas will provide better results for airlines than solely relying on real-time data.” Tools for the industry Recognising the potential offered, Rotate has developed an AI-driven application that calculates what the company calls “achievable shares” for an airline.

“Imagine you’re a sales representative for an airline based in Johannesburg, and you want to sell flights from Johannesburg to Tokyo. With the vast amount of data available today, it’s relatively easy to determine your current market share, as well as historical trends from last year or last month,” Jansen stated.

“However, what’s much harder to assess is your potential market share—what it could have been. Are you performing as expected? Should your market share be higher or lower?” To address this challenge, the company created a machine learningbased AI application that provides highly accurate insights. What’s crucial for industry adoption is the ability to explain the results in a clear and actionable way. “For example, if our AI calculates that your market share for Johannesburg–Tokyo should be 13 percent, that number alone isn’t enough. You need to understand why the AI arrived at that figure. AI and machine learning models can often feel like a “black box,” which makes it difficult to gain trust and drive action. That’s why we focus not just on generating accurate predictions but also on providing clear explanations behind them,” he continued.

“This ability to interpret and justify the AI’s output is essential for securing buy-in from airlines and making the insights truly actionable.

Picture of Edward Hardy

Edward Hardy

Having become a journalist after university, Edward Hardy has been a reporter and editor at some of the world's leading publications and news sites. In 2022, he became Air Cargo Week's Editor. Got news to share? Contact me on Edward.Hardy@AirCargoWeek.com

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