bmibaby Selects SAS Revenue Management Tools


bmibaby is implementing Sabre AirMax Low-Fares Manager, designed for the

low-cost airline market. Developed by Sabre Airline Solutions
, the core

feature of this new technology is its ability to provide revenue management

for restriction-free pricing, a standard aspect of the low-cost airline

model.
Restriction-free pricing has been credited as a key reason for the

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migration of some travellers to discount carriers. Traditionally,

travellers had to meet numerous restrictions in order to get lower fares,

such as Saturday-night stays, round-trip travel and minimum advanced

booking. However, with the growth of discount carriers such as bmibaby,

combined with changing traveller expectations of lower fares, almost all

carriers now offer some form of restriction-free pricing, particularly in

locations of intense competition between carriers.

“Restriction-free pricing is one of the draws of bmibaby,” said Donna

Clarkstone, head of business development for bmibaby. “However, traditional

revenue management techniques do not work in the restriction-free pricing

market. bmibaby required a unique solution designed for the low-cost market

that ensured we met our costs and generated profit. Sabre Airline

Solutions’ Low-Fares Manager offers the first revenue management technology

that offers this solution and is a solid platform for our restriction-free

pricing model.”

                     
Low-Fares Manager will allow bmibaby to continue effectively managing its

revenues by accepting or rejecting passenger bookings based on overall

revenue contributions.

 

Customer buying behaviour by time period can be estimated in the new

system, enabling carriers to adjust inventories and prices in response to

demand to generate the maximum revenue.

 

Available as a stand-alone system or implemented with other Sabre AirMax

Revenue Management Suite products, Low-Fares Manager is offered as an

in-house model or via the Sabre eMergo Web access, an application service

provider delivery model. By leveraging the ASP delivery option, carriers

can access the same advanced functionality without the initial

implementation costs.

 

Offering the industry’s only origin and destination revenue management

system, the AirMax suite is estimated to enhance revenue from five to seven

percent. To date, the system has been successfully implemented for more

than 35 carriers.

 

Low-Fares Manager also integrates with SabreSonic Inventory, an advanced

inventory management solution that leverages open-systems technology, to

provide real-time inventory controls that address the discount market. The

new technology fulfils an industry need that, through Low-Fares Manager,

automates a complex part of the low-cost model.

 

 


“Restriction-free pricing and revenue management is a highly complex area,”

said Vinay Dube, vice president of Sabre Airline Solutions in Europe, the

Middle East and Africa. “As the first organisation to design and implement

a solution for a one-way pricing model, this demonstrates Sabre Airline

Solutions’ expertise to solving the problems airlines face within today’s

continuous and rapidly changing environment.

 

“Sabre Airline Solutions knows revenue management better than anyone in the

industry,” Dube continued. “Changing a traditional revenue management

system to incorporate unrestricted fares is fairly intuitive; however,

putting the theory into practice for an airline that competes in a range of

markets is highly complex. The system we have developed has a strong

theoretical foundation, incorporating the practical nuances of a robust

revenue management system.”
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