This article examines how we are supporting our Aviator airlines with enhanced training and revenue management strategies. It is a normal part of business to consider significant changes in the marketplace and how the airline revenue management system will deal with it. COVID-19 is a significant event resulting in significantly different demand patterns, many late cancellations and unprecedented number of flight cancellations.
Aviator users already know there are multiple ways to approach the problem facing all airlines around the world.
Common questions from experienced or inexperienced airline revenue management teams are:
1.How can we use the compromised historical data?
a. Should we ignore it?
b. Should we remove it?
c. Should we keep it?
Aviator training already includes useful tips and strategies to address various changes in the marketplace, so Aviator airlines already have their front foot forward in readiness to apply the strategy they decide to follow. Strategies to be considered include, but are not limited to:
2. There will not be many people traveling so should airline revenue management teams chase yield or SF%.
a. Answering this question correctly will ensure the airline maximises passenger revenue.
b. Choosing the wrong strategy will hurt your airline, but at the same time, it could help your competition or adversely hurt the overall market (destination).
c. Markets with multiple competitors, need to be mindful of choosing the right strategy so the whole market performs to its best potential.
Aviator functionality already provides various options to approach forecasting, so it is a simple matter of choosing the strategy required, which could be different for different markets. The functionality to choose from ranges from, but not limited to:
3.Historical Sales Data Weighting – allowing users to weight forecasts ‘more or less’ heavily to recent activity – specifically designed for times like these.
4.Ban Historical Flights – allowing users to exclude COVID-19 effected data completely from contributing to forecasts.
5.Time Band overrides – allowing users to adjust forecasts easily and efficiently with a significantly changed schedule.
6.Remaining Demand Adjustment – allowing users to use their own judgement to increase or decrease forecasts by market.
Aviator airlines always have access to our team of experts to remind them how the functionality works.