A Bridge to Agency Success

Ellen Keszler, Senior Vice President of Sabre Yield management started in the airline industry of the 1980s as a straightforward concept selling the right seats to the right customers at the right price. Today, yield management the art of combining large amounts of sales and marketing data with sophistica

By: Ellen Keszler, Senior Vice President of Sabre

Yield management started in the airline industry of the 1980s as a straightforward concept selling the right seats to the right customers at the right price. Today, yield management the art of combining large amounts of sales and marketing data with sophisticated forecasting techniques for real-time decision making creates an annual benefit of 3% to 6% to airline revenues.

This same concept, only slightly modified, is now available for the travel agency community. Developed to assist agencies with revenue management, trends analysis and forecasting and performance tracking, yield management tools enable agents to thrive in a pay-for-performance environment. Here’s how to address key challenges facing agencies today:

" Revenue management in a pay-for-performance environment. With the demise of airline commissions, agencies must make decisions to shift sales to carriers that offer maximum sales incentives and revenue opportunities. Yield management automates and tracks complex override commissions and service fees to ensure that agencies receive accurate and fair remuneration for their efforts. These tools strengthen communications between airlines and travel agencies.

" Better communication of corporate revenue strategy throughout the agency. Yield management tools give agents a real-time view into the agency’s overall commission pool. The system standardizes fee structures and automates the process of reporting newly generated revenues. And, with one central tool, it allows agency leadership to communicate the focus and direction agents need to meet agency revenue targets.

" A holistic view of the industry. By tracking and reporting industry trends and offering aggregate analysis of where an agency stands in relationship to its industry peers, yield management tools can offer agencies the insight and motivation they need to succeed.

In short, yield management systems help agencies level the playing field by offering them tools to make better business decisions faster.

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