As airlines improve their ability to identify potential lost revenue (RI) and actual lost revenue (Sales Audit), they are increasingly becoming aware of the grey area between the two, where undetected leakage may be occurring. Not surprisingly, this is a highly complex area. We will be sharing case studies that indicate the potential magnitude of this leakage and the use of our RAX001 technology to discover this hidden leakage and deliver significant lost profit back to the airline.
The combination of millions of tickets, fares & conditions and reservation changes has created an environment for airline revenue leakage. Fares and conditions are carefully planned only to fail at the edges. While industry surveys suggest that violation levels average between 1% to 3% of ticket sales made through the agent network/GDS; for a $1B airline, this can represent $10M-$30M. Most airlines have settled on using outsourced resources to semi-manually audit a sample of tickets to keep a lid on the level of violations. The gross violations recovered through current arrangements and strategy, however, averages only about one tenth of 1%. This low level of recovery has relegated sales audits to a necessary but minor activity, ignoring what is actually not detected, and therefore not seen, leading to significant lost profit.
Rassure is offering an automated system of sales audit that has outclassed competitive offerings by several times – enough to cause behaviour change and reducing violation behaviour for good.