Airlines are generating increased revenues using Amadeus Revenue Maximisation tools
Etihad Airways, SN Brussels and TACA enhance ability to sell each seat at the optimum price through travel agency distribution
David Doctor, Director, Airline Business Group, Amadeus, explains: “We recognise that the distribution strategies of all airlines have changed significantly as they focus on increasing profitability.” Following customer research, Amadeus identified three core business challenges for airlines: the need to sell profitably across their networks; to control more effectively sales through travel agencies; and to improve their customer and market segmentation through this channel. “Using the revenue maximisation portfolio means that carriers are able to address all three of these challenges quickly and successfully,” says David Doctor.
Maximising profitability across the network
The dual issue of accurately forecasting revenues and preventing revenue leakage across its short and long haul network was a challenge for Latin American regional carrier, TACA, which has over 47 per cent connecting traffic.
Through implementing Amadeus Dynamic Availability in conjunction with Amadeus Married Segment Control, TACA is able to accurately identify the most valuable bookings based on origin and destination (O&D) information whilst protecting itself against O&D misuse. Consequently, TACA can ensure connecting flights are linked together in bookings, preventing partial cancellations of the higher yield long-haul segment after availability has been granted on the short-haul route.
According to Fernando Lara, Director, IT Applications, TACA: “From our past experience the revenue loss of not having married segment controls in place could be as much as 4% depending on the route.”
Improving customer and market segmentation
Effective revenue maximisation is about ensuring that all seats are sold at the right price at the right time through the most productive agents, channels and markets. It was this requirement, which led the Abu Dhabi-based airline, Etihad Airways, to implement Amadeus Availability Management, which provides the carrier with the means to decide what inventory to release to which sales outlet.
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At its core, Etihad Airways continues to seek new ways to expand its services and provide innovative benefits for its “Guests.
Implementation of electronic ticketing follows the recent launch of the carrier’s pioneering Etihad Guest program, a loyalty scheme which challenges the traditional airline approach and instead responds to customer demand by offering its members flexibility of choice, transparency and convenience.
Improving sales performance through the travel agency channel
Belgium-based SN Brussels looked to Amadeus to help the carrier distribute more and better, their preferred content to travel agencies. Using the Amadeus Carrier Preferred Display Management, a tool unique to Amadeus, the airline can create a customised ‘shop window’ for travel agents.
Alfred Kidjo, Head of Distribution Services and Systems, SN Brussels, said: “Since we have complete control over the content of the ‘shop window’, this allows us to tailor our offer in line with our distribution strategy as if we had a direct link to travel agencies.”
David Doctor concluded: “We are committed to further enhancing and extending our revenue maximisation portfolio to ensure that distribution to travel agencies is a significant driver of value.
