Revenue management is a complex equation and an integral part of the commercial capabilities of any airline. Airlines were were innovators in this field in the 1980s. However, in today's era of internet and big data coupled with changed customer behaviour and no limits for processing capacity value is lost due to legacy processes and technology. Revenue Management will move to offer management and become more effective by stopping the separation of inventory and pricing and enabling real time dynamic offers.
Real time and automated responses to requests will replace static price points and separate limited allocations of inventory in the future world of airline revenue management. The times of price limitations due to the letters of the alphabet will be over. Finally the customer will be put at the centre.
Airlines will be able to dynamically price, i.e. adjust the price for flights and ancillaries in real time to customers' needs without needing to file fares with a third- party system. Continuous pricing will allow indefinite price points. As a result, pricing for flights and ancillaries will match customer willingness to pay.
For airlines, the new model will take away complexity and lead to more efficiency and (O&D) flight and ancillary revenue optimisation. However, the transition to the new world will mean significant investments in new technology and a mindset change.
Our team of industry and technology experts can help with assessment of systems, definition of requirements, architecture and roadmap for a successful transition to your future Revenue Management vision. We can design with precision your future Revenue Management capability and technology architecture, evaluating and integrating commercial products in a modern cloud-scaling solution.
All of this is done while ensuring industry alignment and balancing the need to still support class-based distribution in legacy channels for an interim period.
Establish your vision, approach to continuous pricing for seats and ancillaries, aligned to your distribution strategy and future organisation capabilities vision.
Establish the capability and a modular solution architecture, leveraging commercial tools and development.
Define requirements and the baseline architecture, with deep-dive evaluations of commercial product partnerships for quick wins.
Finalise the build vs buy decisions to establish a roadmap for transition, partnering with system integrators where appropriate.