The airline industry is not simply a major persona and employer in one country or continent. Globally the imprint of this industry touches individuals, businesses, and corporations. According to the Bureau of Transportation Statistics, in the first quarter of 2019 passenger airlines reported an after-tax, net profit of $$4.8T. This represented the 25th consecutive quarter of this sort of growth.
It is easy to understand why airline revenue management through CPQ or Configure Price Quote technology is so important to the industry. This is essentially software that is designed specifically to assist companies with quote configuration. The technology perfects the process and makes quoting more accurate and effective to various industries, including airlines.
CPQ Software Helps Pricing
The airline industry is able to earn revenue in a number of different ways. Airfare pricing is certainly at the top of this list. Having automated quotes serves dual purposes for businesses and corporations. It works without having to increase staffing. This is also a good way to provide passengers with trackable customer service.
There are specific things that airlines need to know about their pricing processes. The first of these is whether it is effective based on revenue earned. Another thing is to understand when opportunities exist to increase pricing. Not every customer or passenger is the same and is willing to pay more. Those who are can be marketed to in strategic ways.
Keeps Sales Process Centralized
Airlines wanting to maximize their sales for every flight need to use software designed for this purpose. Keeping these processes centralized without having to utilize other systems and products is important. This use of CPQ allows for a mix of pricing for these fares, which can lead to significant bumps in overall sales.
Airline revenue management is effective in working with specific carriers to meet their goals. Outsourcing analytical work is one way that data is gathered in many different industries. This can be a costly way to learn information. Software products that achieve revenue data keep the process central to airlines for use.
Maintain Consistency Despite Markets
There are many things that can have an effect on markets internationally. Airlines need to be able to maintain some form of consistency no matter what markets are doing. CPQ technology is a resource tool that actually makes this possible. The use of AI forecasting, pricing predictions, and enhanced customer service strategies can be achieved on a consistent basis with this software.
Quoting proper prices to passengers is one way to ensure that flights are fully booked. This is a goal that airline share no matter where they happen to be located. Even when markets are particularly volatile, carriers can benefit from effective pricing of fares. This software technology shines a light that leads the way to price correctly.
Strategies to Increase Profits
Airline tickets, food, telecommunications, and the internet are some of the products that the industry offers to passengers. There are opportunities to earn profits from the time that tickets are booked until the flight arrives at the airport. Being able to forecast and analyze these opportunities is critical to increasing profits Year-over-Year. There are benefits to automating systems for any carrier.
Passengers who have traveled around the world discover a wide array of carriers. There are brand names that are recognized internationally. There are also carriers that are regional and are still not automated. Airline revenue management tools can offer automated carriers many benefits. In fact, pricing effectively is likely not possible without tools that define passenger behaviors and habits.
Options for Small Carriers
You don’t have to be the largest airline carrier to benefit from CPQ use. This is why small airlines are utilizing these resources today. They are better able to engage with passengers and to make informed decisions about them. Bid price control and network optimization are two tangible benefits that work to boost revenue for airlines.
The more data gathered and used, small carriers have the chance to grow. These resources are actually built to scale and function well right where you are currently. The configuration process is elastic and is designed to meet your specific requirements. These options give small and medium-sized carriers the opportunity needed to benefit from this data.
No matter what industry is being operated, management strategies are paramount. This is another reason why CPQ solutions are beneficial.