Enabling sale of each seat at the optimum price through travel agency distribution
Amadeus has registered a marked increase in the number of carriers using its revenue maximisation tools to increase revenues through travel agency distribution. (1/17/2007)
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, director, Airline Business Group, Amadeus.
The company says Etihad Airways, SN Brussels and TACA are some of the airlines which have improved their performance following the successful application of Amadeus’ revenue maximisation tools and services.
Citing an example, the shared that 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 percent connecting traffic.
Amadeus stated: “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 four percent depending on the route.”
In another case, 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, 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.”