Extracting the most benefit from a revenue management solution implementation

Abstract

Revenue management departments have relied on scientific solutions to maximise their airlines' revenue performance. As new science and technology become available, airlines are compelled to implement the new functionality. For many reasons, although, these enhancements sometimes fail to deliver the projected benefits. This article discusses four approaches that have been used to implement revenue management solutions successfully at a number of airlines. These approaches include building an effective program, assessing and mitigating risk, understanding the underlying forecasting and optimization science and getting users to love the new solution. Two case studies — covering hybrid revenue management and PNR no-show forecasting implementations — will be used to articulate these principles.