28-Oct-2016 5:08 PM
European Aviation Club outlines five reasons why airlines should focus on revenue management
European Aviation Club chairman Rigas Doganis, speaking at the CAPA-ACTE Global Summit, stated (27-Oct-2016) revenue management is at the heart of airline business. He outlined the five reason why airlines should focus on revenue management as:
- Instability over the past 15 years has meant airlines cannot squeeze anymore out of cost savings and the only way to improve profitability in the long-term is on the revenue side;
- Small changes in RASK can make a big difference in the profitability of an airline;
- Fuel price will inevitably go up, and when that happens, the only response is to look at revenue;
- Revenue management is not just about revenue but gaining a competitive advantage;
- Revenue management is the one area where technological innovation can make a big impact on airline profitability.