Air Transport World

Continental learns to believe. (Continental Airlines Inc.; yield-management software)

For yield-management software to work, airlines have to stick with the program to produce more revenue without increasing their assets

The profile of airline revenue-management departments is rising. With costs remaining high (ATW, 12/95), carriers have few alternatives. Producing more revenue from existing assets is an obvious one.

So carriers are repositioning their revenue managers, altering the organization charts in a way that pushes them higher up the management ladder. For example, Continental Airlines' revenue manager reports to the chief operating officer. Austrian Airlines' revenue manager is responsible to President Herbert Bammer.

Perhaps, eventually, advocates suggest, revenue management will be employed as a strategic tool, rather than as a tactical one, which is something these advocates feel is needed strongly.

But just signing up for a revenue, or yield, management package and training revenue forecasters and analysts are not sufficient moves, practitioners told a meeting cosponsored by IATA and Aeronomics Inc.

If revenue maximizationra--the goal of revenue management-is to succeed, airlines must stick with it. A short-term, rhetorical commitment after contract signing is insufficient. More recently, PROS Strategic Solutions VP/Managing Director Robert Salter told ATW: "We're doing three new installations at old customers who let their systems go downhill. …

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