Many airlines struggle to obtain clear, easy-to-understand performance metrics for end-consumer revenue & inventory management. Technical revenue management systems do not often make this information readily available, provide limited access to historical performance inputs, or offer only a partial view. A deeper understanding of how systems are performing is critical to identify key areas of opportunity, and to continually learn from and improve flight management over time. Oliver Wyman works with clients looking to understand these missed opportunities for spilled passengers (high-yield and low-yield), forecasting accuracy and overbooking performance.
Oliver Wyman’s Inventory Management Diagnostic (IMD) tools help flag systematic errors in forecasting or market management that undermine performance. The revenue management diagnostic capability supports different granular views of performance and reveals spill opportunities for historical departures. The tool then helps create management strategies to drive value in the future by closing gaps identified in the diagnostic. An alerts system helps guide revenue management analysts' attention to the highest-value issues and prioritizes opportunities across different markets.
Oliver Wyman has helped clients achieve 2-3% growth in overall revenue by deploying its IMD tool.