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.