Real-Time Revenue Reporting

Keep An Eye On Revenue Realization For Every Seat Sold

Airlines can track key revenue-centric metrics in real time and acquire an accurate picture of their performance across different data slices.

Without real-time access to revenue reports, a carrier’s ability to proactively track and act on revenue discrepancies against actual targets is limited. Unfortunately, airlines typically experience long lead times before they are able to access revenue-accounting reports that paint an accurate picture of how much revenue they make on their own flights. The time lag to obtain this valuable information may be as short as a few days, in the ideal case, or as long as a month, even for some sophisticated network carriers.

Of course, many business areas within an airline would undoubtedly benefit from technology that provides revenue-realization information as bookings are ticketed, with the accuracy of revenue-accounting systems. As a result:

  • Interline and codeshare performance could be analyzed in real time to capture any dilution effects a partner’s inventory may have on the host airline.
  • Inventory and revenue-management analysts could exercise greater control on specific booking classes to maximize effectiveness of an airline’s revenue-management strategies.
  • Sales and distribution channels could check revenue performance in real time and by point of sale to identify possible channels of abuse.

Receiving real-time revenue reports during the flight booking cycle allows airlines to proactively track and resolve discrepancies against actual revenue targets. The ability to view revenue at varying levels of detail empowers revenue-management analysts to make educated inventory-control decisions that minimize uncertainties about the effectiveness of the airline’s revenue management strategies.

Better Control Over Seats Sold
Better Control Over Seats Sold

Sabre Airline Solutions’ real-time revenue reporting application gives analysts a single source for comparing historical data with current trends as bookings occur rather than waiting for batch updates at the end of the day. This gives airlines better control of every seat they sell.

Ideally, airlines need a real-time, flexible proration engine that accommodates different Special Prorate Agreements (SPAs) between airlines, along with add-on reporting capabilities, to drill-down and identify sources of gaps in revenue realization. In addition, they should be able to calculate key metrics such as load factors, yields and real-time booking counts to provide a single snapshot of their performance, from the network to specific regions and down to an individual flight.

To provide airlines with the most up-to-date view of key performance metrics, especially revenue contributions from different partner or agency agreements on ticketed bookings, Sabre Airline Solutions® has developed a real-time revenue-reporting application that plays a key role in an airline’s business intelligence capabilities.

Developed in the technology company’s new innovation lab, the real-time revenue reporting solution leverages Sabre Airline Solutions’ data-integration platform to build sophisticated, customizable logic that acts on happenings across an airline in real time.

The platform enables airlines to fully leverage their data to make precise business decisions. It integrates operational and customer data from multiple isolated systems onto a single platform, enabling data to be analyzed in real time. This allows airlines to create rules unique to their business processes and use them to drive increased revenue, personalize the customer experience and better manage their IT costs.

Calculating Key Metrics In Real Time
Calculating Key Metrics In Real Time

A real-time revenue reporting solution enables airlines to calculate key metrics, providing a single view of their performance, from the network and particular regions down to a specific flight.

The real-time revenue reporting solution supports airlines with numerous robust features such as:

  • Flexible proration library — The most sophisticated piece of the application’s functionality, the proration library enables revenue-realization reporting and accommodates standard proration logic and numerous proration methodologies and agreements in a central repository. For SPAs specific to an airline, the solution provides extensive configurability to maximize the level of accuracy in prorating incoming tickets. A powerful rules engine also supports complex SPAs and overrides values from basic proration, all enabled through a comprehensible graphical user interface.
  • Data-integration platform — The solution’s proration capabilities are often needed by other systems in an airline’s IT enterprise, including marketing, operations planning, inventory and pricing for applications ranging from bid-price availability evaluations to evaluating codeshare agreements. The data-integration platform gives airlines the ability to make this data available to downstream third-party systems via standard Java API, Web services, message queues and files.
  • Drill-down capabilities — The data-integration platform’s flexible architecture allows the tool to graphically display several dimensions of revenue analysis, including revenue contributions by point of sale and by booking class at network, region and flight levels. In addition, combining derived key performance indicators such as yield and load factors give an airline the most complete performance picture.
  • Triggers — The platform’s integrated rules engine enables the tool to provide real-time alerts and interval-based reporting that notify end users when predefined conditions have been met, such as when booking volumes or actual revenue fall below set targets. This real-time notification supports analysts and managers with proactive decision making.
  • Independent infrastructure — The creation of the reporting tool on top of the platform allows the solution to function independently of other airline systems.
Personalized Customer Experience
Personalized Customer Experience

The data-integration platform combines operational and customer data from various isolated systems onto a single platform so data to be analyzed in real time. This enables airlines to create rules specific to their business processes and use them to personalize the customer experience as well as increase revenue and effectively manage IT costs.

Additional capabilities will be incorporated into the solution later this year, including:

  • “What-if” analysis capabilities — By leveraging the solution’s what-if analysis engine, airlines can pre-empt SPAs that dilute their revenue stream through the convenience and transparency of a simulation capability made possible by the flexible proration library.
  • Building predictive modeling capabilities — As part of the commercial planning suite, the real-time revenue-reporting solution will gradually support forecasting capabilities on revenue, yield and other metrics through complete integration with revenue-management systems. Analysts will have a single source in which to view historical performance against current trends and act as bookings occur, instead of waiting for end-of-day batch updates on the day’s performance. This provides better control over every seat an airline sells.

Real-time revenue reporting gives airlines the ability to view revenue contribution at varying levels of detail, so they can make proactive decisions that minimize uncertainties and maximize effectiveness of their revenue-realization capabilities.

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