Gambia Bird Airlines selects airRM as its revenue management system

I wrote almost a year ago about my worries for Gambia Bird having a possible schedule disruption resulting from depending on one aircraft to serve the carrier’s entire network.
Now, the airline acquired one more A319. Thus, there are fewer worries about possible schedule disruption, even with the increase the airline’s network of destinations.
The decision of the airline to acquire an automated revenue management system is a commendable step into the future for the fledgling national airline of Gambia. I am thinking that the airline got a good deal from the Revenue Management Systems Inc because of being the vendor’s first customer in Africa.
Date: 13 October 2013 commenting on http://www.hispanicbusiness.com/

Bumped? Blame the government

The perishable nature of an airline seat prevents the lost revenue from seats that fly empty from being recovered. The substantial amount of revenue that can potentially be lost through spoilage makes overbooking an essential part of revenue management. In fact, passenger no-shows were the first practical problem that scheduled airlines sought to address as they began to adopt revenue management techniques. All tickets were initially fully refundable and airlines needed to overbook in order to remain financially viable. Overbooking is still extremely important to an airline’s financial performance. According to Robert L. Phillips in his book “Pricing and revenue optimization,” American Airlines estimated that in 1990, they saved $225 million through overbooking.

Date: 18 November 2009 commenting on http://www.forbes.com/

What are the basic requirements for airline revenue management course?

The revenue management course will give you a chance to discover the techniques that airlines are applying to derive revenue from seat selling and maximize profitability.
This course will help you understand how legacy airlines and low-cost carriers apply the basic principles of airline revenue management to meet the current challenges that face the industry today.
I will be running a revenue management course through wiziq.com very soon.
Email: management@ultraconsultants.net


Date: 22 August 2009 commenting on http://www.elearningbuzz.com/

Hilarious MadTV video about airline fees - the ancillary revenues push can sometimes go wrong

What was an out-of-line idea in 2007 is the face-slapping reality of 2008 and 2009.


Published at: http://simpliflying.com

Ancillary revenue: A boon or a bane for the airline brand?

The ancillary revenue is both boon and bane depending on the type of carrier applying it.

So, it is bane for legacy carriers which are already charging high rates for their services. Those air carriers are presumably providing the basic air service plus a reasonable amount of amenities depending on their service philosophies and their market competition. They are not supposed to collect additional charges (ancillary revenues) or otherwise they will negatively affect their brands. For Singapore Airlines to collect additional charge for the emergency-exit row seat is an example of a practice which is on conflict with the brand.

On the other hand, the ancillary revenue is a boon for low-cost carriers. They are presenting themselves as providers of the basic flying services. For increasing their operating revenues, they have to consider ancillary revenues. Of course, collecting the ancillary revenues does not jeopardize their brands as long as they are staying away from asking the passengers to pay for using the toilet.

Putting the nomenclature aside, the reality is that both legacy carriers and low-cost carriers are out there to make money. They are adopting various pricing policies in such a way to make them profitable. Legacy carriers are depending on traditional bundled air fares while budget carriers are depending on a group of unbundled fare components.

Published at http://simpliflying.com

King of ancillary revenues, RyanAir offers €1,000 for best idea on making money!

Asking for more fresh ideas is unquestionably a good PR idea for RyanAir. Giving away 1,000 euros is almost nothing compared with the high publicity RyanAir will receive from propagating the news about its contest.

Legacy carriers can apply the same idea with little modification. They can simply organize similar contests but not for asking for fresh ideas to generate more ancillary revenues (like the case of RyanAir), but rather asking for fresh ideas to improve the overall passenger services. Thus, the passengers will be double-motivated to seriously participate in any of those contests. Apparently, they have a chance to win the contest and enjoy the to-be enhanced service of the legacy carrier.

Alas for those who can not participate in the contest of RyanAir due to their place of residence! The good news for me is that I will have less competition. However, to show my philanthropic traits, I am ready to have a joint venture with anyone of those ineligible contestants who has a knock-out idea for RyanAir.


Published at: http://simpliflying.com