Airsource Partners' hand-picked revenue management experts help airlines assess the efficiency of their current revenue management strategy and instill best practices in revenue management for increased efficiency.

Revenue management software solutions abound on the market but key to success is a revenue management strategy that fits perfectly with your environment. Airsource Partners can help you by means of a thorough analysis of your environment and the implementation of Best Practices in Revenue Management.

There are four essential conditions for revenue management to be applicable in any industry:

=> That there is a fixed amount of resources available for sale.
=> That the resources sold are perishable. This means that there is a time limit to selling the resources, after which they cease to be of value.
=> That different customers are willing to pay a different price for using the same amount of resources.
=> That segmentation can be applied and controlled to differentiate the prices applied to the various products offered within one item e.g. a flight.

Airlines represent the perfect field of application for Revenue Management.

Whereas yield management involves specific actions to generate yield through perishable inventory management, Revenue Management encompasses a wide range of opportunities to increase revenue. A company can utilize these different categories like a series of levers in the sense that all are usually available, but only one or two may drive revenue in a given situation.

The primary levers are:

=> PRICING: to redefine pricing strategy and developing disciplined pricing tactics.
=> INVENTORY: aiming at optimally pricing or allocating capacity.
=> MARKETING: to allow companies to sell higher volumes by temporarily decreasing the price of their products.
=> CHANNELS: to strategically drive revenue through different distribution channels.

Revenue Management requires the implementation and monitoring of several processes taking place at various stages:

DATA COLLECTION: taking place first during the Revenue Management process and aimed at collecting meaningful and accurate information and data to be processed during subsequent phases.

SEGMENTATION: key to market-based pricing and revenue maximization. Success hinges on the ability to segment customers into similar groups based on a calculation of price responsiveness of customers to certain products based upon the circumstances of time and place.

FORECASTING: the performance of the revenue management solution in place will depend critically on the quality of the forecasts produced by the airline.

OPTIMIZATION: while forecasting suggests what customers are likely to do, optimization suggests how a firm should respond and is about evaluating multiple options on how to sell your product and to whom to sell your product.

Revenue Management is complex and requires a constant re-evaluation of the airline's prices, products, and processes in order to maximize revenue. In a dynamic market, an effective Revenue Management System constantly re-evaluates the variables involved in order to move dynamically with the market. As micro-markets evolve, so must the strategy and tactics of Revenue Management adjust. Revenue Management’s fit within the organizational structure is equally of paramount importance.

There is no ready-made miracle solution when it comes to implementing and maintaining a revenue management system. Each airline requires a different solution. Once installed, the Revenue Management solution in place needs to be benchmarked on a regular basis as technology as well as the environment of the airline keep evolving on a daily basis.

Airsource Partners has gathered aviation experts specialist of revenue Management in its reservoir of aviation expertise. Our experts are ready to have a close look at your revenue management solution. They will blend the BEST PRACTICES IN REVENUE MANAGEMENT commonly accepted in the industry with the environment specific to your airline for improved results.

Do not hesitate to contact us to see how our experts could help you further improve the efficiency of your Revenue Management solution or help you implement one.