Just like seasons, demand changes!

Anup Shegaonkar

Product Marketing Manager, Revenue Optimisation, Airline Customer Unit, Amadeus IT Group

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In Revenue Management, getting the seasonality trends right, means securing crucial revenues for your airlines. People are always going to take summer vacations and spring breaks. Easter, Chinese New Year, Christmas, Diwali, Eid periods will always meet hordes of travellers queuing at the security check, impatient as ever to reach their final destination.

Forest scenery in the winter with sunshine from the back

“Winter is coming”, a cliché that every Game of Thrones (GoT) fan has reiterated at every single opportunity presented to him or her. While we have been waiting nearly six years for this apocalyptic exacerbation of an already cold and dark milieu, witnessing unimaginable drama, 'Seasonality', in real life is rather predictable.

Seasonality planning, however mundane and basic in nature, remains an important activity for a Revenue Management analyst. Optimising flight capacity to maximise revenues is becoming increasingly complex given the numerous flight options, constraints and distinct customer purchasing behaviours. Accurately analysing the past still holds the key to unlocking the future demand predictions. And the need for manual intervention is constant given the shifting nature of dates in the solar, lunar and lunisolar calendars used across the world. Moreover, special events completely disrupt the revenue predictions and require special attention. What seemed to be a simple task e.g. capturing the customers travelling home for Easter, now becomes a challenge when we add revenue maximisation as a key KPI under evolving circumstances.

Thus, any aid, in the simplest nature, that gives better visibility on seasonality management is a boon to the revenue management analysts at the airlines. Amadeus Revenue Management solutions use modern scientific algorithms to forecast the demand (seasonal and otherwise) and optimise capacity to the best of airline business objectives. Seasonal demand variations (special events, fixed and moving holidays) can be incorporated in demand forecasting. A good revenue management system will automatically re-map the seasons year on year and include them in the demand forecasting process.

By better understanding how different markets behave under different seasons, the analysts can take well informed revenue maximisation decisions. While the numerous monitoring tools and alert mechanisms ensure that the revenue management team is in the right path towards total revenue optimisation

Make sure your revenue management team is equipped with the powerful tools to make smart decisions otherwise, like GoT (new season airs this July) you might end up buying a thick fur coat in what seems to be perhaps one of the warmest summer seasons in recent years.

“Spring is the time of year when it is summer in the sun and winter in the shade.” ― Charles DickensGreat Expectations