Faced with the increasingly fierce competition in the aviation market, the strategy of consumer choice has gained increasing significance in both academia and practice. As ever-increasing travel choices and growing consumer heterogeneity, how do airline companies satisfy passengers' needs? With a vast amount of data, how do airline managers combine information to excavate the relationship between independent variables to gain insight about passengers' choices and value system as well as determining best personalized contents to them? Using the real case of China Southern Airlines, this paper illustrates how Bayesian belief network (BBN) can enable airlines dynamically recommend relevant contents based on predicting passengers' choice to optimize the loyalty. The findings of this study provide airline companies useful insights to better understand the passengers' choices and develop effective strategies for growing customer relationship.
Part of the book: Bayesian Inference