Revenue Management

CHALLENGES IN AIRLINE REVENUE MANAGEMENT

Revenue management can be defined as the art of selling the right seat to the right customer at the right price at the right time through the right distribution channel. Nevertheless, actually deciding what is “right” in terms of optimized revenue per flight remains a major challenge for any airline. Constant pressure on margins and rising costs underscore the importance of taking a distinctive revenue management approach to increasing revenue.

In addition, the ways in which we used to distinguish between airline business models are becoming increasingly obsolete. While low cost airlines all over the world are adopting a hybrid business approach by introducing additional sales channels and services that bring greater complexity, some full-service carriers are simplifying their operations and increasing revenues by unbundling fare products, easing fare restrictions and competing in a low-fare environment. Either way you look, the key to maximizing profitability lies in making sure that an airline’s revenue management approach matches its market environment and that it is integrated seamlessly into the overall airline organization.

 

OUR EXPERIENCE

At PROLOGIS, our experts have gained many valuable years of practical experience at the management level while working for different airlines. We are accustomed to working in an international environment and can boast a proven track record when it comes to successful projects. Please contact us to learn more about our extensive project management experience.

OUR SUPPORT

Using revenue management techniques as effectively as possible is crucial to ensuring the success of an airline in a highly dynamic and competitive market environment. At PROLOGIS, our focus is on adding value to your organization by introducing a proven project approach and working together closely with your internal staff. We will analyze your needs in detail quite thoroughly by asking the right questions and help you find the right answers based on our in-depth knowledge and best-practice experience in various areas of revenue management, including:

Many airlines already understand how important technology can be in taking a strategic approach to profitability. Furthermore, more and more airlines across the globe are realizing the benefits Revenue Management Systems (RMS) have to offer when it comes to analyzing historical airline data in order to produce business forecasts and thus increase revenue.

However finding the right airline solution can still pose a major challenge since there are so many off-the-shelf RMS on the market to choose from. Selecting a state-of-the-art revenue management and pricing system that best meets your needs inevitably means taking many different factors into consideration before you finally make your decision.

PROLOGIS understands the impact revenue management challenges have on an airline’s success. While individual requirements for external interim revenue management support often differ from airline to airline, industry experts clearly agree that seamless and rapid integration of interim management resources into an airline’s organization is the key to its success. This is where we come in, as we specialise in helping airlines to integrate their revenue management strategy into the overall organisational structure.

The expertise PROLOGIS has in training and coaching revenue management staff is based on the wealth of practical experience we’ve gained on behalf of many airlines from around the world. Despite the many different business approaches that range from regional airlines to full-service and low-cost airlines, we are committed to offering your airline an efficient cost-benefit ratio with all we do. While training and coaching your team members, PROLOGIS will work to ensure that your representatives are able to pass on the knowledge they gain to your revenue management team and thus be able to train these individuals more effectively.

  • Revenue Optimization Processes – Re-design and Change Management

Utilizing revenue management techniques as effectively as possible is crucial to the success of any airline. These days, airlines find themselves facing a highly dynamic and competitive environment. Fluctuating fuel prices and the introduction of new taxes make it even more important for you to increase your revenue and lower costs even further.

Many airlines all over the world are adopting a hybrid business model that includes additional sale channels and services, but also a significantly higher level of complexity. Revenue managers need to consider code share and interline agreements, charter contracts and allotments, corporate fares, network optimization, competitors and other relevant topics.

PROLOGIS can help you improve how you manage revenue and thus react to today’s challenges by taking advantage of our best practice experience in areas such as:

 

Do you have any questions or would you like more information?

We look forward to hearing from you!

Contact: Gerd Pontius

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