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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