Revenue integrity: Delivering revenue and cost reduction benefits to airlines

Revenue integrity: Delivering revenue and cost reduction benefits to airlines

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Article ID: iaor20082679
Country: United Kingdom
Volume: 6
Issue: 2
Start Page Number: 71
End Page Number: 76
Publication Date: Aug 2007
Journal: Journal of Revenue and Pricing Management
Authors:
Keywords: yield management, economics
Abstract:

Revenue integrity (RI) is an often ignored practice in the area of revenue improvement. To date, many industries particularly telecommunications, healthcare and power have employed RI in order to minimise costs and maximise revenue. These industries were late to market in the Revenue Management solution area, yet employed RI far earlier than most airlines have, which may be surprising to many. Yet airline RI has been proven to deliver a minimum benefit of 1 per cent additional revenue, with some airlines achieving 2–3 per cent benefits from additional revenue and reduced costs. In the last five years, Paul Rose has persistently campaigned for the implementation of RI at airlines, speaking at conferences, creating an organisation to promote its usage and working with RI suppliers to expand their markets. This paper provides an insight into why it should be employed at an airline, the options available and the benefits to be gained.

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