Revenue management can be described as the art of selling seats to targeted customer groups at an optimal price through the most cost-effective distribution channel at the best time before flight departure. For any airline, each of the above goals is a challenge in itself, not to mention the combination of all in order to optimize revenue on the flight as well as the network level.
Nevertheless, ongoing pressure on margins and rising costs, combined with a highly dynamic market environment emphasizes the importance to apply a sophisticated revenue management strategy, including the appropriate tools.
- Evaluation and implementation of state-of-the-art revenue management systems
- Interim managment
- Revenue management training and coaching
- Revenue optimization process redesign and change management
- Pricing and inventory management strategies: Definition and implementation
As airlines evolve their business models and distribution strategies, the need to manage the accounting of increasingly complex revenue streams becomes more critical.
- Our team at PROLOGIS guides you through feasible approaches to revenue accounting, based on your business requirements and resource capabilities. We help you to adapt your revenue accounting approach to match the commercial strategy of your airline.
Ground Operations & Airport Processes
Ground operations and airport processes represent a comprehensive and complex area which requires a broad range of different resources. A highly dynamic market environment causes a need for continuous process – redesign to ensure an efficient premium service quality without losing sight of an optimal cost-benefit ratio.
- Detailed analysis of current processes
- Quality management: service quality and station control / inspections
- Training: DCS and staff training programs
- Process optimization in ground operations, ground handling, ground services, e-ticketing and code share agreements
- Establishment and development of all department areas (ground operations, passenger handling, etc.)
- Evaluation and implementation of adequate airport applications (DCS, flight planning, etc.)
The best pricing strategies and lowest fares will not help to achieve optimized revenues if they are not aligned with an effective distribution strategy. Based on the overall business model and airline strategy, targeted customer groups and their weighting need to be defined, followed by a clear strategy on how to address and stimulate these targeted customer segments through suitable sales channels with the best cost-benefit ratio.
- Analysis of your status quo in your distribution setup, such as
- Definition of current vs. targeted customer segment profiles
- Contribution analysis of all sales channels
- Analysis of ancillary sales
- Competitor benchmark
- Realignment of your distribution strategy
- Alignment of existing distribution strategies with the overall business approach and market perception
- Consideration of existing limitations and constraints to ensure that the strategy is feasible for actual implementation
- Incorporate new opportunities for direct and indirect distribution options, including ancillary sales optimization
Tour Operator Business
More and more airlines have rediscovered the classic tour operator business. But how do you integrate this very specific business model into the world of LCCs and legacy carriers?
- Evaluation and implementation of tour operator systems
- Process review and optimization with regard to contract and allotment handling
- Revenue optimization processes
- Identification of ancillary services strategy
Network Planning & Scheduling
Independently of your business model, your network strategy is always the basis for subsequent business areas, such as ground operations, onboard product, pricing, and revenue management. Therefore, your network decisions have a major impact on your business success.
- Network strategy design and management for start-ups as well as established carriers
- Fleet & capacity planning
- Competitor screening and response
- Training & coaching
- Interim management
- Evaluation and implementation of schedule planning/management systems
Data Warehousing / BI / Reporting
The data quality and robustness of a database/data warehouse is a critical asset to monitoring an airline’s cost and route performance as well as managing your business on a day-to-day basis for network planning, revenue management, and other areas.
- Definition, setup and management of effective data warehouse and BI solutions
- Definition of key performance indicators (KPI) and implementation of a robust and automatized reporting workflow
- Data modeling
Strategy – Business model shaping and re-stucturing
Choosing the right business model for a start-up airline, questioning the current market orientation, expansion and adjustments to an existent business area are all topics that require a detailed analysis of the market. In order to be successful with the low margins in the aviation industry, a complete strategy and competition analysis is required, but also the question of what is the right offer at the right time. PROLOGIS is your competent partner with more than 20 years of experience in all international markets and business models.
- Market analysis
- Feasibility studies
- Competitive analysis
- Business model definition
- Business model changes
- Route profitability analysis
IT – System Upgrades, Migration and Implementation Projects
At regular intervals or after business realignments, any airline is confronted with the question of whether it is well positioned with its current Passenger Service System (PSS) or whether replacements or upgrades are required to face upcoming challenges and remain competitive.
Whether you have identified gaps in your core PSS or any other related IT application, or whether you plan to fully replace or upgrade your current system, at PROLOGIS, we have experts with many years of experience who can help you to identify the best solution and guarantee a smooth implementation project together with your team.
- Gap analysis and system evaluation
- Project Management
- Change Management
- UAT Management
- Data Migration Support
- Development Support
IT – Business Process Outsourcing; System Administration
Setting up systems, keeping them up-to-date or introducing new ideas with the help of the Passenger Service System (PSS) – these tasks always require manpower and experienced employees. Have you ever thought about outsourcing these tasks to a team of experts?
- Expert knowledge and best practice configuration management
- Remote support whenever it is needed
- Flexible packages and flexible duration
- Intensive testing of the configuration before it is implemented into the live system
- Fast implementation – by the most experienced PSS experts
- Basic set-up review and best practice advise (if required)