Revenue Management examples

Aviator software creates more revenue from every flight

If your flights are manually managed by flight controllers according to demand groupings, more than likely you have established different inventory settings for low-demand days, medium-demand days and high-demand days. This is better than nothing, but just barely. Manual control assumes that all flights in the each category (low, medium or high) will perform the same way. But as you well know, they don’t and manual control creates unseen, but significant, losses for your airline every day. It’s time to do much better—with Aviator.

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Increases loads on

low -demand flights

Aviator tracks demand and sales on each individual flight and each departure, and will detect even a slight dip in demand on a single flight. It responds by making automatic changes to the inventory, optimising settings and allowing more discounted seats to become available. The result? Loads are improved, revenues are increased.

Increases yields on

high- demand flights

As Aviator is constantly looking for changes in demand patterns, it will detect even a slight increase in demand on a flight.

When that occurs, it will optimise inventory settings and close the cheapest classes. This pushes up the average fare paid for the flight, and creates an increase in revenue for the flight.

It adds up pretty quickly

The extra revenue gained from an automated optimised inventory change to any given flight may be modest, but remember—Aviator will be making thousands of these changes daily. The end result? A significant increase in revenue for your airline.

Even if you have the best team of analysts in the industry, they alone could not produce these kind of results—because they could not possibly calculate the intricate forecasts and “optimal revenue settings” on the thousands of flights per day that Aviator does. Additionally, Aviator tracks each flight at least daily—watching as booking and cancellations occur, and continually tweaking the settings to extract the maximum revenue possible.

Don’t underestimate the power of Revenue Management

Revenue Management is an applied science which some small- and medium-sized airlines tend to overlook. In our experience, though, once an airline implements Revenue Management, they never look back. The concepts become completely 
ingrained, and the extra revenue becomes a pleasant “new normal.”

One size fits none!

Aviator flight optimisation is too important to be a “one size fits all” solution. We know that every airline is unique. Some
 need competitive airline data added to the logic. Others have special class nesting needs. In fact, virtually every airline has very specific requirements for their business model. And Aviator is designed to allow easy customisation, so that your airline can increase revenues in all circumstances.

Even more revenue through selective flight overbooking

Extra revenue can be produced by accurately predicting last-minute cancellation activity, and
overbooking the flight—so that some of the seats which will be cancelled are pre-sold to other
passengers who want to travel on that flight. Business rules are applied to maximise gains and
minimise any risks.

How about profits?

Over the past few decades, and across a variety of industries, companies introducing Revenue Management for the first time have increased revenue by an average of seven percent. In the travel and transport industry, that can often be the difference between profit and loss.

 

Let’s use a small airline with annual passenger revenue of $80 million as an example. Even if a move to Revenue Management produced a revenue increase of just four percent, that would boost overall revenue by $3.2 million. Considering the relatively low cost of Aviator, almost $3 million would be added straight to the bottom line. And if the airline was already budgeting for a profit of $3 million, the additional $3 million in revenue due to Revenue Management would increase profit by 100%!