Yield Management

From leg based to origin and destination revenue management

The yield management opportunities for major hub-based or network-oriented airlines are the opportunity to maximise revenue, determine the optimal fare mix to maximize revenue and yield performance, and manage price-availability requests at the point-of-sale level.

In today’s market, revenue management departments are often at loggerheads with their counterparts in Sales, the former pursuing yield maximisation while the latter pursues maximum volume.

Balancing these impulses requires an understanding of the technical science behind managing yield coupled with a cross-functional decision process across Commercial to establish agreement on what the appropriate target yield should be.

Whether we are working for a LCC which sees price as part of its marketing spend or a Full Service airline for whom multiple and complex fare classes are a necessary way of differentiating different customer needs, the focus we bring is to help you verify your goals and validate whether your current structures, processes and team are delivering against this.

Airlines with strong transfer flows have moved from segment based to Origin and destination (O&D) yield management systems that promise great results but we have also found that to do this effectively requires a clear understanding of whether your Commercial organisation is ready for the change involved and accepts the shift in the balance of power towards the yield management organisation.

To discuss how we can improve your yield performance get in touch

Our Team

SG crop

Sudeep specialises in airline start-up, corporate strategy and commercial performance improvement. He focuses on start up planning and meeting revenue … More

Ancillary revenue has become increasingly important to full service airlines, and can make the difference between profit and loss.