New End-To-End Promotion Technology Stimulates Demand.
Ground-breaking technology enables airlines and other businesses to track and refine promotions in real time.
Affering promotions to stimulate demand and fill seats on under-booked flights is common within the airline industry. However, accurately measuring their effectiveness is a challenge. Analysts often rely on advance booking trends and use offline models to determine the appropriate discounts, markets and timeframes that define a promotion. But those methods are often cumbersome and lack the ability to incorporate customer information that would allow the airline to more strategically target certain segments of its customer base.
Since most airlines track promotions by booking class in these offline models, they have limited visibility into how promotional fares are booked and ticketed at the farebasis code level. Real-time information is unavailable, so the success of a promotion is usually analyzed retroactively, preventing airlines from making key tactical adjustments during the life of the promotion.
What if you were able to incorporate valuable customer information when developing strategic promotions? And what if you could accurately measure in real time just how well your promotions were stimulating demand — so you could act on it immediately?
To address these challenges and empower airlines with the ability to better track promotions and incorporate learning into continuous improvement, Sabre Airline Solutions® now offers Sabre® AirVision™ Promotion Manager.
The first application developed in the new Sabre Airline Solutions data integration platform, Promotion Manager tracks promotions in real time and provides automation and decision support to define future promotions.
The data integration platform enables airlines to fully leverage their data to make better business decisions. It integrates an airline’s operational and customer data from multiple “siloed” systems on a single platform and analyzes that data in near real time. This allows airlines to create rules unique to their business processes and then use those rules to drive increased revenue, personalize the customer experience and better manage their IT costs. It also dramatically reduces the time to market to develop and deploy applications.
The Right Time To Promote
Whether trying to fill seats on low-demand flights or vigorously pursuing market share, promotions help airlines increase profitability. However, determining the best times to issue a promotion can be a complex process, and airline analysts need systems that will automatically alert them when the time to launch a promotion is ideal.
Promotion Manager assists airlines with numerous promotional capabilities, such as:
- Tracking — Promotion Manager captures booking, ticket, inventory, departure control and customer data, enabling revenue management analysts to track the impact of promotions in terms of impact to the booking buildup as well as revenue generation and dilution. The data integration platform enables tracking to occur in near real time. However, tracking promotions is only the first step.
- Flexible reporting — The solution’s flexible reporting module allows promotions to be analyzed by booking class, point of sale, selling date, travel date, fare quote, fare types, seats sold and passengers per booking.
- Triggers — The integrated rules engine within the data integration platform enables Promotion Manager to provide real-time alerts and interval-based reporting, notifying end users that predefined conditions (such as booking volume or when revenue is above 10 percent of targets) have been met. This real-time notification enables analysts and managers to take action during the promotion to correct and optimize outcomes.
- Freedom from source systems — The creation of Promotion Manager on top of the data integration platform frees the solution from being coupled to any other specific airline systems.
What’s next for Promotion Manager:
- Closing the revenue management loop — The data integration platform enables integration with revenue management, providing a complete promotion-management solution. With a focus on integrating valuable data across an airline, the natural next step is to supply the promotional data into the revenue management system so past promotion activity can be incorporated to refine elasticity models and optimize promotion parameters.
- Suggesting promotions — Once the integration with the revenue management system is in place, it will be a natural next step to incorporate the forecast data. This enables an airline to automate the business logic behind identifying when to issue promotions to stimulate demand and which promotions to issue to achieve the desired result.
- Closing the fares management loop — The data integration platform will also enable integration with fares management systems, allowing fares to be tagged for tracking at the time of creation rather than setting it up manually in Promotion Manager. This gives pricing analysts the ability to assess the effect of the promotion in terms of bookings against the targeted fares. This information will also be incorporated into the decision making for the promotion parameters. Some outcomes could be the retraction or extension of a promotion or the decision to increase or reduce the number of markets for which it is offered.
By providing consolidated and granular access to the data behind promotions in real time, Promotion Manager enables an airline to analyze and calibrate promotions while there is still time to make changes. Promotion Manager automates business processes, freeing analysts and managers to make the decisions that will increase profitability.