Amadeus has registered a marked increase in the number of the world’s leading
carriers using its revenue maximisation tools to increase revenues through
travel agency distribution.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.
David Doctor, Director, Airline Business Group, Amadeus, explains: “We
recognise that the distribution strategies of all airlines have changed
significantly as they focus on increasing profitability. 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.
Maximising profitability across the network
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 per cent connecting
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 4% depending on the route.”
Improving customer and market segmentation
Effective revenue maximisation is about ensuring that all seats are sold at
the right price at the right time through the most productive agents,
channels and markets. It was this requirement, which led the Abu Dhabi-based
airline, Etihad Airways, to implement Amadeus Availability Management, which
provides the carrier with the means to decide what inventory to release to
which sales outlet.
According to Ali Saleh, Vice President, Distribution and Alliances, Etihad
Airways: “These tools allow us to optimise our revenues in two ways: by
encouraging more sales through our most productive travel agencies via the
provision of increased availability; and by better monitoring non-compliance
of our distribution policy.”
At its core, Etihad Airways continues to seek new ways to expand its
services and provide innovative benefits for its ‘Guests’. Implementation of
electronic ticketing follows the recent launch of the carrier?s pioneering
Etihad Guest program, a loyalty scheme which challenges the traditional
airline approach and instead responds to customer demand by offering its
members flexibility of choice, transparency and convenience.
Improving sales performance through the travel agency channel
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 of 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.”
David Doctor concluded: ?We are committed to further enhancing and extending
our revenue maximisation portfolio to ensure that distribution to travel
agencies is a significant driver of value.