Capture untapped revenue opportunities using advanced analytics
Sabre Airline Solutions continues its year-long series focused on the need for a next-generation revenue management system. The four-part article series examines how Total Revenue Optimization (TRO) can be realized by implementing a revenue management solution that incorporates real-time data, portfolio integration, advanced analytics, and real-time decision support. The following is a preview of the series’ fourth article discussing the benefits of a revenue management system with portfolio integration.
To combat the challenges that a revenue analyst faces today, airlines need a next-generation revenue management solution with easy-to-use advanced analytics capabilities and fully integrated workflows. Having the ability to view the entire network is crucial to make informed decisions, yet many analysts today are blind to this unique perspective.
However, combining tremendous amounts of airline data from around the world each day into a friendly, easy-to-use user interface is not what one would call simple – every second of the day millions of passengers are shopping for or booking a flight. Every minute of the day an airplane departs and enables travelers to connect and/or arrive safely.
To put this into perspective, on average, an airline with 500 daily flights can have up to 500,000 discreet data points that potentially need to be monitored by a revenue-management system. But today’s revenue management systems rely on limited technology platforms that were built with a threshold of handling only one-fifth of the volume of complex data that exists today. In addition, advances in data management, processing power, and forecast optimization have become increasingly better, faster, and smarter, creating an even greater need for a new solution.
Next-generation revenue-management (NGRM) solutions don’t simply pull large volumes of data. They also focus on the user experience, making the consumption of large data manageable and easy-to-consume. In addition, they empower analysts to identify trends and opportunities to capitalize on the changes and increase revenue opportunities.
A next-generation revenue-management system allows an analyst to see and understand the macro network picture, which will significantly simplify the day-to-day tasks. For example, as the market conditions change, it will show the analyst what is happening and allow the analyst to make informed decisions.
The system will pick up on both regional and local phenomena, including geo-political impacts or large events, like the Olympics. Success in today’s revenue management space requires a next-generation revenue-management system equipped with advanced analytics. Advanced analytics detects demand patterns that are not readily visible and empowers an analyst to make smarter, faster decisions.
Want to learn more about how airlines can empower analysts to make smarter, faster decisions with a next-generation revenue management system? Download the article now!
Author: Jade Owens