VICTORIA FALLS, ZIMBABWEe and GAUTENG, SOUTH AFRICA – At African Airlines Association Annual General Assembly in Zimbabwe, South African low cost carrier, kulula.com, announced plans to increase revenue through a new retailing approach. Using Sabre Corporation‘s newly-launched AirVision Revenue Optimizer platform, kulula will be able to price its services based on a customer’s willingness to buy different combinations of fares and ancillary services.
As an early adopter of this new revenue management approach, kulula is able to respond faster to changing market conditions in real-time and optimize revenue streams across all its services including ancillary sales, codeshare and partnership arrangements.
“Airlines historically viewed revenue through base fares alone, which is only half the picture,” said Dino Gelmetti, VP Airline Solutions, EMEA at Sabre. “With ancillary services now accounting for up to 40 percent of total revenue, and travelers expecting additional products and services from their airlines, this legacy approach is no longer effective. Airlines need to consider each passenger’s total need, value and spend and provide tailored options that they are likely to purchase. Revenue Optimizer has been developed to enable airlines to become smarter retailers by addressing this need, offering their travelers the personalized experience they expect.”
Sabre’s AirVision Revenue Optimizer provides end-to-end control for airlines to better understand customer profiles and respond to their needs and willingness to pay, while efficiently pricing and selling seat inventory and ancillary products. This is accomplished by leveraging real-time data from the SabreSonic passenger service systems (PSS) and other Sabre commercial planning solutions.
By supporting this new retailing approach and allowing airlines to offer products and services tailored with the right content to the right customer and at the right price, Revenue Optimizer can help drive incremental revenue.
“kulula.com is a growing airline that is committed to being considered as a thought leader in the industry,” said Gabriel Moritz, Executive Manager Commercial Product at Comair. “In order to give our customers the tailored service that they want and expect, we need to be able to better understand their travel and buying patterns on an individual basis. Sabre’s innovative new revenue management technology will give us a new level of knowledge that has not been possible until now, and will help us drive up incremental revenue and achieve our ambitious goals.”
kulula.com is the ninth airline to sign an agreement to use this next-generation revenue management solution. In addition to implementing Revenue Optimizer to truly differentiate themselves as a customer-centric retailer in the industry, kulula is also implementing Sabre AirVision Group Optimizer to control group reservations and requests effectively and efficiently through automated business processes.