Global Airline: Revenue Management System

To help a major airline company compete more effectively in the lucrative cargo services market, Accenture implemented a state-of-the-art revenue management system and helped reengineer the company’s supporting revenue management processes.

These new capabilities—along with Accenture’s ongoing maintenance of the new system on an outsourced basis—allows the airline company to secure more profitable cargo bookings and is expected to boost the company’s cargo revenues by 2 percent, or approximately US$14 million over the next few years.

This Asian airline company wanted to expand its freight business and capture a larger share of the lucrative air cargo market. The company recognized profitability in this area would hinge largely on revenue management and its ability to allocate effectively and accurately its inventory of cargo capacity and services to the right customers at the right price.

This posed a significant challenge. Whereas many of its competitors had established revenue management systems and processes, this company had not. For help in establishing and running a robust revenue management system and related processes, the airline company turned to Accenture.

Accenture teamed with the client to:

• Define solution requirements and conduct fit/gap analyses to ultimately design a revenue management solution tailored to meet its needs.
  
  
• Leverage professionals from the Accenture Delivery Center in Chennai, India, to develop a state-of-the-art revenue management solution based on the Accenture Freight and Logistics Solution’s cargo network optimization system.
  
  
• Shape new mid-term and short-term revenue management processes.
  
  
• Implement the system and processes in two phases.

Today, professionals from Accenture Delivery Centers in Japan and Chennai are providing maintenance and support services for the Accenture Freight and Logistics Software under a five-year application outsourcing arrangement.

The airline’s new cargo network optimization system, revenue management processes and outsourced application management environment enable:

• Better decision making that allows the company to focus on the most profitable cargo bookings.
  
  
• Better allocation of inventory to the right customers at the right price.
  
  
• More accurate short- and mid-term planning, forecasting and pricing.
  
  
• Seamless management of day-to-day revenue management operations.

Together, these benefits are projected to generate cargo revenue improvements of approximately 2 percent, or roughly US$14 million over the next few years.