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Airlines already face numerous challenges, such as sustainability and low profitability. Revenue accounting, the process of recording, managing and reporting on passenger revenue, shouldn’t be one of them. Without efficient revenue accounting systems in place, airlines risk missing out on revenue that rightfully belongs to them, further jeopardizing their profit margins.
Efficient revenue accounting begins with accuracy. In order to be truly accurate, revenue accounting systems need to not only work in real-time, but also embed stringent automatic quality checks. Accuracy is crucial because if there is the slightest error in the revenue accounting process, e.g. the tax is off by just a few cents, the airline may involuntarily diminish its already modest profit margins.
Revenue accounting is also an enabler for business decisions as it further provides valuable insight for various business decisions. If the information is inaccurate, then this can have a negative impact across different areas of the airline business. With a revenue accounting system in place that works in real-time, key commercial decisions can be made based on the exact revenues being brought in.
An efficient outsourced revenue accounting system can reduce overall IT spend. In addition to the effort savings that come with a highly automated revenue accounting system, by adopting a community based approach, overall cost related to revenue accounting enhancements can be remarkably reduced, ultimately helping the airline to improve its financial health.
In short – an efficient revenue accounting system is invaluable. Have a look at our airline revenue accounting site to find out more about what we offer.Editor’s note: Above are some of the topics that are elaborated in a recent by-line from Joanna Thibault, (Associate Director Airline IT Solution Management, Amadeus IT Group) in the latest issue of Africa Wings (No. 28. Feb-Apr 2015 p. 14-15).