1. Describe “active” data warehousing as it is applied at Continental Airlines. Does
Continental apply active or real-time warehousing differently than this concept is
Normally described? Explain your answer.
Answer: as shown in the case Continental senior management decided to invest in enterprise data warehouse that all employees could use for quick access to key information about the business and its customers.
The data warehouse initial focus was to provide accurate integrated data revenue management. At Continental they moves real-time data, ranging from to-the-minute to hourly about customers, reservations, check-ins, operations and flits from its main operation system to the enterprise data ware house.
Following are the few key applications that rely on real-time data.
Fare design: continental understands how important it is to offer competitive prices for the flights to desired places at convenient times. Continental uses real-time data to optimize airfares using mathematical programming models. These helped continental improve the ability to estimate the impact of fare sales and these activities have been estimated to earn $10 million annually.
Customer relationship management: continental marketing department uses the warehouse for customer segmentation and target marketing, loyalty, retention management, customer Acquisition and campaign management, in addition marketing has also created other innovative CRM applications that leverage the warehouse’s real time capabilities. a targeted CRM program resulted in $150 million in additional revenues in one year , while the rest of the airlines industry declined 5 percent.
Customer value analysis: a customer value model using frequency, regency and monetary value gives continental an understanding of its most profitable customers. Over the past years, a goal was to increase the amount of travel by continentals most valuable customer