Amadeus for airlines’ Post

The key takeaway from this report is that effective Revenue Management can significantly enhance your revenue performance. That’s the primary focus

💡 An insightful analysis of how seat configurations influence airline revenue 💺 ✈️ While numbers may vary by market and not apply to all players, this overview highlights how different cabin classes contribute to financial success #Airline #Aviation #RevenueManagement #AirlineIndustry

Understanding Airline Seating Profitability Have you ever wondered how airlines optimize their seating arrangements to maximize profits… Below infographic provides insights into the economics of airline seating. 1. First Class: - Profitability: Surprisingly, not as profitable as one might think. - Costs: High service costs and significant space requirements reduce profitability. 2. Business Class: - Profitability: Often the most profitable section for airlines. - Space Efficiency: Strikes a balance between higher ticket prices and space usage, yielding the highest profit margins. 3. Premium Economy: - Pricing: Tickets are priced 2-3 times higher than Economy. - Cost Efficiency: Only slightly more costly to the airline compared to Economy, making it a high-margin option. 4. Economy Class: - Profitability: Can be unprofitable for certain flights due to low ticket prices and high volume. Optimizing seating configurations can significantly impact an airline's bottom line, balancing between luxury offerings and economic efficiency.

Interesting analysis, even though necessarily generic as the numbers would vary by market. However, it still gives a good, high level overview of the make-up of airline passenger revenue

Disruptions in air travel are sadly inevitable, but how airlines handle them and their cascading impact shapes the entire journey experience. With airlines suffering annual losses of between $35-45 billion due to disrupted flights alone, it is clear that effective strategies to address disruption are paramount.     Download the IBS Software 'Proactive Disruption Management' guide to explore ten ways a cloud-native, single-source platform can replace legacy, disjointed, siloed tool-chains to help airlines improve disruption management and accelerate disruption recovery. https://lnkd.in/dzpEiNJM #Aviation #AviationTechnology #DisruptionManagement

In the rapidly changing landscape of the airline industry, small and medium-sized airlines are facing increasing challenges in staying competitive. In his latest article "Navigating the skies: The need for digitalization for the cost accounting of small and medium-sized airlines", Lufthansa Consulting’s Senior Consultant Haihong Xu explores the critical importance of digitalization in cost accounting for these airlines. With fluctuating fuel prices, rising operational costs and customer expectations, embracing digital transformation is essential to not only survive but thrive in the industry. Haihong Xu delves into the opportunities and challenges that come with digitalization, and how it can help small and medium-sized airlines enhance their performance. Don't miss out on this insightful piece and read the full article here: https://bit.ly/3Uzkces #LufthansaConsulting #Airlines #Digitalization #CostAccounting #AviationIndustry #ArticleAlert

An emerging revenue-optimizing tool for airlines is dynamic pricing. Dynamic pricing empowers airlines to adjust seat and ancillary product prices in real time based on current demand and travelers' willingness to pay, making offers more relevant and increasing the likelihood of conversion. As an early adopter of dynamic pricing, Lufthansa has taken strides to enhance flexibility and personalization in its pricing, contributing to improved revenue performance. In today’s competitive environment, dynamic pricing is a vital part of a modern revenue management strategy. Are you leveraging dynamic pricing in your toolkit? If not, we’re here to help you get started with proven techniques and insights. #dynamicpricing #revenuemanagement #airlinerevenuemanagement #RM #airlinesandairplance #aviation #airtravel #avgeek #airlineRM

Where do airlines see the biggest return on investment (ROI) from NDC implementation? Implementing NDC (New Distribution Capability) can be a significant investment, potentially costing airlines millions. So, where are they seeing the greatest ROI? In our recent webinar, distribution expert Iván Ordás Villamandos delved into the full scope of NDC, highlighting how it unlocks additional revenue streams and cost savings. Watch the full webinar on demand here https://hubs.ly/Q02Vg_XF0 #NDC #airline #revenuemanagement #distribution #traveltech

part 2 HOW TO TRANSFORM YOUR AIRLINES To find the Goldilocks targets, neither too low nor too high, both ambitious and demonstrably achievable, airlines should begin by doing the following: Start with a top-down assessment to set a challenge for what can be achieved, without focusing too early on exactly how it will be achieved. Base the assessment on benchmarks that are the most granular available and intelligently applied across the entire business. For example, only when airlines break down marketing and sales costs into their underlying drivers,1 a process that includes benchmarking and defining realistically achievable potential, do the opportunities become clear and irrefutable Boldly evaluate the business model. For example, airlines could choose to become a hybrid that combines full-service and low-cost models or to fly fewer long-haul routes. Such bold moves may not be necessary, but should be among the options considered. Decisions here will, in turn, guide the more detailed assessment. Assume the mind-set of an activist investor or private-equity acquirer: be ambitious, disruptive, and unconcerned about maintaining the status quo. Create a granular assessment by breaking down marketing and sales into their underlying drivers. Leave no stone unturned There is no silver bullet—no one opportunity that everyone has somehow overlooked. Instead, a successful transformation takes on 500 to 1,000 or more initiatives across the entire airline, all of which need to be identified, planned, prioritized, approved, executed, and refined. While larger themes provide strategic coherence and allow the CEO to focus, small initiatives are needed to capture all the value. The initiatives, once sized, should total 130 percent of the top-down target, given that some leakage will occur during implementation. #evaair #kenyaairway #emirateairline #Qatarairway #kenyaairway #Britishairway #iata

The changes to American Airlines' NDC strategy last month have got airlines looking at their own approach through a critical lens. For successful NDC adoption, airlines need a solid distribution strategy, avoiding the major challenges set out in this article by Travel In Motion. #aviationfest