Successful revenue management can help travel companies increase revenue by up to 16% according to a recent report issued by Traventec.
The paper, titled ‘Strategic Revenue Management for Sustainable Competitive Advantage’ finds that manual approaches to revenue management are costly, time and labour intensive and prone to error.
Prepared in conjunction with Consultecom, a revenue management specialist, the report identifies a three-pronged approach to understanding business processes, organisation and people structures, and software solutions to coordinate strategic revenue management.
Howard Frost, Traventec VP Sales said: “Survival for travel companies means being profitable and competitive and is dependent on successfully managing two fundamental factors - cost and revenue. While we often hear about cost-cutting strategies, the revenue side of the equation is an equally important focal point in times of business pressure.
“To manage revenue successfully companies must identify a combination of well-defined business processes, suitably skilled personnel and intuitive software solutions - our view of the market suggests this is not happening enough.
“Revenue management is a business approach that can lead to sustainable advantage. Companies who optimise price structures and levels can deliver dramatic increases in profit through faster decision-making, more effective marketing, improved operational efficiency and increased productivity.
The report, available through www.traventec.com, provides advice on how companies can optimise pricing to differentiate product to suit customer needs and to maximise revenue.
Traventec mainly serves vertically integrated groups (VIGs), leading online players, airlines and top 25 tour operators in the leisure travel sector.