Challenged by the global effects of the pandemic, airlines look for more ways to drive profit
The airline industry is no stranger to revenue management challenges. However, with travel restrictions and flight cancellations brought on by the COVID-19 pandemic, airlines are seeking new ways to make up for lost revenue. This is where Faredirect’s ancillary revenue tracking solution comes in.
As Co-Founder and CEO of Faredirect, we are thrilled to join the FLYR team and bring our technologies to the Cirrus platform. The Faredirect tools use a comprehensive set of data to unlock ancillary revenue opportunities. Ancillaries, such as personalized seat, meal, and baggage offerings, are key drivers of profit. In fact, for some airlines, half of their revenue earnings are through ancillary sales!
So why do ancillaries work? Passengers are less reactive to changes in fees linked to ancillaries than they are to ticket prices.
Faredirect’s AI-based solution responds to this human behavior, combining historical data and willingness-to-pay estimation. With the information provided by the Faredirect tool, airlines can optimize more than just their ticketing strategy to meet their overall revenue goals.
And this is just a start. Combining Faredirect’s ancillary management tool with FLYR’s existing revenue management platform results in a streamlined revenue optimization system for airlines – something they have been seeking for years. By pooling our ambitions, industry experience, and strong teams, FLYR can enable airlines to unlock revenue and increase profit through a real-time, self-learning data driving total revenue optimization tool. I am convinced that – driven by passion and ambition – we at FLYR will set a whole new standard of how airlines are looking at revenue maximization.