New Challenges in Revenue Management

These days airlines are challenged by a highly dynamic and competitive environment more than ever.
A systematic use of Revenue Management tactics and tools is a decisive means of extracting the maximum amount of revenue from a fixed quantity of seats and one which can often lead to a significant improvement in revenue. But today’s low-cost airlines are increasingly adopting a hybrid business model with additional types of sales and services which have one thing in common: these strategies result in a level of complexity that many airlines are barely able to cope with in terms of their systems in general but especially their Revenue Management.
Today revenue managers have to take code sharing agreements, charter contracts or (soft) allotments for tour operators into consideration when managing flights.

OUR SUPPORT

Together with your staff, we fully analyze your business and market environment. We support you in analyzing your historic data and projecting it onto future business on a proven qualitative and quantitative basis, covering such factors as

• General pricing- & fare setup
• General demand (as well as market segmentation)
• Cancellations / overbooking
• Group reservations / special demand
• Discount ticket allocation
• Analysis of external competition
• Analysis & adjustment of your schedule
• Marketing & sales activities (promotional sales, newsletter etc)

We also provide support in selecting the adequate Revenue Management / Forecasting tools based on our comprehensive knowledge of the common systems currently on the market.

OUR EXPERIENCE

We have many years of experience both working in and consulting on all kinds of Revenue Management tasks with a focus on airlines with a low-cost, charter or hybrid business model.

Our in-depth knowledge has been put into practice at several airlines including

• Introducing and establishing a revenue management department and system
• Managing the construction of a custom-made web-based revenue management system including definition and design of specifications, e.g.
• A seamless workflow between RMS and relevant reservation & distribution systems
• Integration of cost-related data that assigns direct operating costs to individual routes / flights
• Integration of market-related and competitive data, e.g. competitors’ fares
• Detailed reporting

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

We look forward to hearing from you!

Contact: Gerd Pontius