So far this year, five European airlines have fallen (Malev, Spanair, Cirrus, air Alps, Czech connect). Oil prices are once again reaching levels above $125 a barrel , and the economic outlook in Europe is distinctly gloomy.
While airlines can’t do much about European macro-economics , it can do some simple things to improve its competitive position and the utilisation of its systems. One thing they can target is ensuring that they are getting as much out of their RM(Revenue Management) systems as possible.
Over the past number of years, airlines have become dependent on RM software providers for RM training. While this allows staff to understand how the system works and what the potential of the system is, vendors don’t necessarily have the time or space to tailor the tools to the commercial needs of organisations on an ongoing basis.
A 2009 survey submitted for the Journal of Revenue and Pricing showed that many airlines are not fully satisfied with vendor training . The response to the survey showed that the average satisfaction was 3.31 (out of 5), though the most common level of response was 2! It is clear that there is a need for a new perspective on RM training that mixes the theory of RM ,with a practical commercial sensibility.
Leveraging our experience with airlines , hotels, car parks and transport companies across the world, we can assist your organisation in introducing Best Practice Revenue Management and in building a world-class team of revenue analysts. Our view is that RM needn’t be complicated but if applied correctly, can wield a very high return on investment.
Our consultants can help to :Increase the commercial awareness of analysts, increase the standardisation of performance, improve the quality and speed of decision-making, provide insights into the changes that are occurring in the competitive marketplace, improve the communication between the analysts and the executive and ultimately deliver tangible revenue improvements.
Please contact us for more information.