1. Making the Most of Revenue Management

2. OR HOW TOGETHER WE CAN ADD £30 MILLION TO THE BOTTOM LINE!

3. REVENUE MANAGEMENT Fact or Fiction FACT : Revenue Management is the term used to describe the process of achieving maximum revenue on the sale of perishable assets FICTION : Revenue Management sits in the Ivory Tower, oblivious to the real world. They are only interested in making money and know nothing of customer care.

4. Are We Alone? Airline seats - once the aircraft departs with an empty seat, there is no longer a revenue opportunity associated with that seat. Travel Industry - Hotel rooms, Car Hire, Cruise holidays. Media Advertising Hobbies - Golf, Horse Riding etc.

5. Revenue Management is the integrated control of Capacity and Price. These are the 2 KNOWN factors. The unknown factor is the demand for capacity at a given price. Demand must therefore be forecast to ensure optimal control. How Does It Work?

6. Essential Factors For Good RM forecast passenger demand for each class central repository of historic data optimise the fare mix consistently impartial on a network wide basis from the centre aware of Sales/Marketing/ Operational issues consider denied boarding Vs. spoilage optimise individual/group mix manage O & D control for optimal network revenue

7. United, the world’s largest carrier, earned an additional $150 million last year using revenue management software. Most major airlines claim that they can increase their revenue by 3 to 10 percent. Scorecard Winter 1999

8. Focus Comparison

9. It’s one of our top corporates Again!!! She doesn’t see the bigger picture