It’s a well-known fact that the aviation industry is a highly regulated industry with multiple stakeholders. And by that count, airfare too, is a highly controlled operation. So getting the correct airfare is a critical aspect of any airline’s business operations. But it faces challenges where poorly designed or enforced fare management infrastructure has cost more compared to the value created.
An airline can stand to lose up to 3% of their annual revenue and affect their CSAT if they get their fares wrong. And the impact is felt keenly by – Airlines, Passengers and Agents.
Approximately 3.3 billion passengers flew in 2014. This number is to rise to more than 7.4 billion in twenty years. As the number of routes, volume of passengers and number of aircrafts rise, marking the right airfare, at the right time to the right person will become a costly affair. Throw in the growing trends of code sharing, ancillary services, competitive pricing, interlining and negotiated fares, only serves to further complicate the fare filing and distribution process.
And that process needs to quick and reactive, because this marketplace is pretty dynamic. Today, as passengers are finding the lowest fares at the click of a button, an airline cannot afford to be complacent in its pricing. One needs to manage fares distribution for both direct and indirect sales channels, across multiple locations and time zones and taxes. Additionally, this system should be able to monitor the vast ecosystem of market and competitive fare changes and react in real-time. (REGISTER NOW to receive IGT’s FREE POCs )
Take into account that at any given time an airline has 500,000 fares on offer and the marketplace has hundreds of thousands of them which could change in a single day. A little lag can on key routes – and lost revenue can quickly add up. But get fares right and it can add anywhere from 3%-10% to overall annual revenue.
What is the solution? Clarity and Certainty. It is necessary to adopt a complete fare filing and distribution process, which is a combination of real-time analysis and smart automation with defined key features such as:
- 100% fare filing accuracy for direct and indirect sales channels.
- Re-issue and refund management capable of optimizing the “Revenue Leakage”, due to schedule changes, delays or cancellations
- An intuitive and automated filing platform that can identify and update as per the allowed booking rules, taxes and YQ.
- Advanced knowledge and management of CAT 31, 33, 25, 35
- Negotiated fares management option
Price is paramount: IGT’s fare filing service automates all levels of fares, which include taxes and applicable surcharges such as YQ. The service also takes into consideration the actual selling prices in the market and responds in real-time with 99.9% accurate fares. By cutting down on time-to-market on fares decisions and accuracy, allows airlines to strengthen their strategic and tactical pricing initiatives.
REGISTER NOW to receive IGT’s FREE POCs Fare filing may be just a backend revenue driver but is essential to both sales and revenue teams. By quickly and accurately managing fares, one can stay ahead of the competition especially in global profitable routes. Better service, quicker time to market and stronger revenues – the cost of success cannot be mismanaged.
View IGT’s infographic on Airline fare filing
About the Author: Renee Kishore is digital marketing specialist, and a published author. A researcher and writer of change tactics and technologies in travel and other verticals, she frequently posts across the digital ecosystem. With 8-yrs of experience in communications and marketing, Renee has a passion for discussions and can be reached at: firstname.lastname@example.org