In a nutshell, Revenue Management in airlines allows you to automate inventory control, to increase loads on low-demand flights, and increase yield on high-demand flights.
Your flight inventory settings control the revenue outcome for each flight. These settings dictate just what classes and prices you have for sale and the availability at each price point.
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. The problem with manual control is that it assumes that all flights in the same category (low, medium or high) will perform the same way, which creates unseen, but significant, losses for your airline every day.
There is a better way. Aviator, from Maxamation, is industry-leading software which integrates with your existing systems to dynamically control flight inventory settings 24×7 based on forecasted demand and current bookings and modifies availability at different price points to make every dollar count.
Revenue Management software tracks demand and sales on each individual flight and 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.
The Aviator software is constantly looking for changes in demand patterns and 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.
Little changes add up. Revenue Management software will be making thousands of changes daily, resulting in a significant increase in revenue for your airline – far more than possible with manual updates.
At this point, you may be excited about the possibilities of Revenue Management software for your airline but concerned about the existing investment you’ve already made in systems and processes. Don’t be. The Aviator software has been built from the ground up by airline industry experts to integrate with your existing systems, helping you maximise revenue and minimise lost profits through automated analysis, inventory adjustments and availability optimisation for every flight.
Simply book an appointment with our team of experts who will assess your individual needs and situation and build a customised plan, just for you.
Airlines introducing Revenue Management for the first time have increased revenue by an average of seven percent, which can often be the difference between profit and loss. Using 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 increase overall revenue by $3.2 million. Could your bottom line do with a boost?