EyeforTravel News: Revenue Management Feed

JetBlue expects its ancillary revenues to increase 10% YoY

Daleen — Tue, 02 Feb 2010 09:32:02 +0000

Speaking during JetBlue’s Q4 2009 Earnings Call (posted on Seeking Alpha), its CFO and executive vice president, Edward A. Barnes, said, “While the positive pricing traction during peak travel periods has been encouraging, the off peak periods remain a challenge as aggressive pricing across the airline industry has had a significant impact on yields. We continue to be encouraged by the success of our ancillary revenue initiatives.

Intra-Asia market eclipses North America as world’s largest: IATA

Daleen — Tue, 02 Feb 2010 09:25:16 +0000

Asia-Pacific’s travellers numbered 647 million compared the 638 million who travelled within North America (including domestic markets). By 2013, an additional 217 million travellers are expected to take to the skies within Asia–Pacific.

“Non-transparent pricing benefits no one”

Daleen — Fri, 29 Jan 2010 08:46:49 +0000

A Cornell University study published this month examined how hotel guests perceive fairness in terms of differential room pricing.

The report concluded that the best way to combat perceived unfairness in pricing - without sacrificing revenue management strategy - is to increase the transparency of pricing methodology. Guests, the study infers, are more comfortable with the price they pay for their room if they understand why they pay that price, and under which conditions they might have encountered a different price.

Airlines expected to generate US$58 billion in ancillaries this year

Daleen — Mon, 25 Jan 2010 08:07:14 +0000

CAPA highlighted that air fares around the world, particularly in the US, have fallen sharply since the onset of the recession, making baggage fees (and other ancillary revenue items) an increasing lifeline for the airline sector. US airlines alone are expected to cross the US$4 billion-barrier in 2010 in terms of baggage revenue generation. But such charges, particularly in the US as network carriers adopt these strategies, have quickly become a flashpoint for airline differentiation and a catalyst for marketing innovation.

Ryanair may go for first fare hike in four years: reports

Daleen — Fri, 22 Jan 2010 07:13:23 +0000

Ryanair chief executive Michael O’Leary has indicated that the airlines’ average fares could rise from the beginning of its next financial year on April 1st, reported Irishtimes.com.

According to Dow Jones, O’Leary said average fares will be flat across Europe in 2010, but Irish fares will rise 10 percent.

“We’ve just come through a year where fares have fallen 20 percent,” O’Leary said. “The fares out of Dublin will be significantly higher this year.”

CEO’s and MD’s of Air Asia X, Abacus, Google Travel and Microsoft to address Asia’s travel industry

Daleen — Thu, 21 Jan 2010 08:21:49 +0000

EyeforTravel’s Travel Distribution Summit Asia will take place in Singapore, April 28th-29th. The event is Asia’s largest meeting place for senior travel professionals with 55 expert speakers confirmed and over 800 leading brands expected attend.

US airline passengers tipped to face higher prices this year

Daleen — Mon, 18 Jan 2010 07:14:06 +0000

Delta Air Lines Inc., United Airlines and Continental Airlines Inc. are raising the cost to check a first and second bag this month, reported Bloomberg. The higher fees follow recent $20 increase in the round-trip fuel surcharge on flights between the US and Europe by the five biggest carriers with international service.

French rail operator prepares itself for a dynamic pricing environment

Daleen — Tue, 08 Dec 2009 07:51:09 +0000

iDTGV intends to generate the most profitable fares at any given time, accounting for factors such as price-sensitivity, demand from different markets for the same train, as well as competitive activity.

iDTGV sells tickets exclusively online for its passenger trains that connect Paris with destinations in the south of France.

The company expects that JDA’s PSRM solutions will help it "outdistance the competition by optimally positioning ticket prices relative to other rail services, as well as national and budget airlines".

New reservation system to hurt revenue: WestJet

Daleen — Mon, 07 Dec 2009 11:00:11 +0000

WestJet introduced the SabreSonic system in mid-October. It is being reported that the launch has been riddled with disruptions that have eroded fourth-quarter revenue, including website crashes and long waits to get through to the carrier’s call centre.

WestJet president and CEO Sean Durfy said, “Regrettably, the transition has impacted the level of service that our guests have come to expect and deserve, and these service issues are carrying on longer then we originally anticipated.”

Using discounting in a targeted and strategic manner

Daleen — Fri, 04 Dec 2009 10:25:08 +0000

Therefore, like any business decision, it is important to understand the risks and rewards of taking such actions both now and in the future.

The way this year has gone so far, it is quite interesting to assess whether those suppliers, who have been focusing on going direct to consumers, have lost out on indirect channel partners.