“If a tree falls in a forest and no one is around to hear it, does it make a sound?” asked George Berkeley 1710, American philosopher.
Like the tree falling in the forest, no one hears the sound of the real revenue leakage. Revenue leakage is like an iceberg with most of the leakage below the waterline and invisible. It is turning out that traditional sales audit is identifying only a fraction of the actual revenue leakage that is taking place. This is made worse by airlines on one hand aiming at new opportunities to grow revenue, profit, and productivity. While on the other hand, they strive to differentiate their brands in the marketplace of rapidly growing LCCs. This increasing complexity has defeated many attempts at full revenue assurance.
Traditionally, Audit has been largely manual and with some degree of automation. Rassure, being a proactive data-based audit solution for airlines has identified revenue leakage estimated at 1% – 3% of total sales volume for most passenger airlines. Even direct sales via airline websites can leak revenue through call centres! The under-collection could be enough to turn the airline from profit-making to a loss situation in any one year. The leaks are due to a range of factors such as fraudulent ticketing activity, mismatched fare basis codes, invalid fare amounts, or errors associated with taxes, fees, surcharges, and advanced purchase or abuse of waivers. The role of Agents needs a microscopic analysis considering they are a crucial stakeholder in ticketing, revenue collection, and customer facilitation.
Our innovative, AI-based abilities tactically enable us in the detection of revenue leakage, damage assessment through implementation of smart analytics solutions. It allows an airline to take advantage of the digitisation, improve the ROI, and contribute to capacity building initiatives avoiding consuming precious time and resources in tedious Agent Debit Memos (ADM).
Rassure is your trusted and resourceful partner to detect, reveal, and stop all types of ticket rules violations. Our comprehensive, automated, technology-driven system based on process approach identified up to ten times more revenue recovery benefits than traditional sales audit, despite doing a second pass audit. Rassure can coexist with Airline initiatives to prevent revenue leakage across the life cycle of the ticket.
Airline industrial revolution requires an advanced level, thought leadership to support the “stop leakage” initiative of Rassure. The revenue-management system for inventory approach, fancy promotions, and experience improvement methodology are not enough in a long-term profitability strategy. Our efforts today will play a key role in the evolution of air travel in the next few decades.