Key Capabilities of Airline Revenue Management:
- Forecasts demand, cancellations and no-shows for each of your market segments
- Forecasts customers’ demand sensitivity to price
- Offers optimization solutions for setting optimal selling prices or optimal inventory allocation depending on business requirements
- Tailors quotes to each specific competitive situation
- Allocates inventory so you do not turn away the most valuable customers or fly with empty seats when demand exists for them
- Quickly responds to competitive changes in the marketplace
- Manages overbooking of inventory to balance the risk of displacing passengers against the risks of flying with empty seats
- Monitors the overall revenue performance of the controls in order to explain results and guide future decisions
Airline Revenue Management helps airlines maximize revenue and profits by accurately forecasting future demand, optimizing price plans and optimally allocating capacity, based on passenger price sensitivity as a key driver. It runs frequent optimization of prices and controls based on price-sensitive demand, available capacity and airline business rules, and provides optimization of overbooking along with powerful reporting and data exploration capabilities.
The solution is scalable to the requirements of airlines of almost any size. As the nature of the airline business changes with increasingly price-sensitive passengers, new competitors and more diverse distribution, JDA’s next-generation price-sensitive Revenue Management solutions provide airlines with the ability to optimize every transaction in every individual market segment. These leading-edge solutions support frequent and accurate calculations of optimum prices and inventory controls that reflect and exploit the changing demand conditions in order to deliver increased profitability.
