The basic principle of revenue management (Revenue Management) is: "to sell the right product to the right passenger at the right time." Revenue management techniques are an optimization model based on forecasting of demand for a segment of market and targeted to determine the optimal pricing policy. Revenue management is a system demand forecasting methods and price optimization techniques.
Sirena.Revenue is a modern segment-oriented Revenue Management System for airlines, «Revenue (or Yield) Management System» (RMS). This is one of the most relevant and flexible management systems, which considerate the best practices of forecasting and optimization. That allows airlines to be more competitive, to be sensitive to any minor market changes, to evaluate the general tendency and to plan long-term development strategy.
Revenue Management Systems are key to financial stability of airlines, serving as a tool for analyzing market trends and identifying the chances of revenue growth in future. In world practice RMS solutions have been employed since 1980 and have provided airlines with a revenue growth of more than 6% according to IATA experts.
Sirena.Revenue provides the maximization of airlines' revenues from sales of air tickets by calculating the optimal sales limits for each booking class. Sirena.Revenue enables to decrease operational costs of airlines by reducing required recourses. The airline can focus on the most profitable destinations and flights and to reduce temporary routine costs.
Advantages of Sirena.Revenue:
- Multiple forecasting system enables Sirena.Revenue to account as seasonal changes in the flight loads as the trends in the present time. Departure flights analyse and calculation of received regularities in the future flights predictions.
- Determination of optimal selling volume for a transit flight. Resource optimization on segment level.
- Creating own scenarios of sales is possible. Automated account of competing airlines tariffs.
- Sirena.Revenue integrates with various inventory systems. The update information is available in three modes: regular loading (timetable), trigger (inventory system event), Online updating (user request). All the information, system engineering and recommendations are stored on system server, the company has full access to any information for any period of time.
- Calculation of group transportation, with the possibility to select flights and number of passengers.
- Sirena.Revenue has a modern and intuitive web-interface in Russian /English, no installation required and any localization possible. Due to user-help screen in real time, the system is easy to understand and requires minimum time for a personal training. Embedded cross-references system between all necessary business processes provide easy and quickly access to any applications part.
- Unique access system Sirena.Revenue enables to delimit users access on destinations, segments, flights, application. That will allow airlines to distribute responsibilities among staff at all levels, and to keep the necessary security level of commercial information.
- Flexible reports system allows to analyze all parameters of operating system, to make operative decisions.
- Flight Notification service (extraordinary demand, capacitance changes and etc.)
Main Functions of Sirena.Revenue:
Processing of statistical data:
- Sales reports (Source — inventory system)
- Tariffs of airlines (Source — tariffication system)
- Tariffs of competitors (Source — GDS, the systems of monitoring of tariff information)
- Revenue rates (Source — Revenue Management System)
- Expenditure rates (Source — System for accounting of expenditures)
- Calculation of predictions
- Calculation of optimal sales limits
- Sales limits management in the inventory system
Additional functions of Sirena.Revenue:
- Calculation of the lowest price for a group flight
- Calculation of the overbooking rate
- Calculation of financial data of a flight
- Management of data on own tariffs and tariffs of competitors
- Calculation of predictions and optimization of the virtual flight
Types of reports supported by Sirena.Revenue:
Any report can be saved as a formed document or on filter- and / or groups-level.
- Reservation (information on flights reservations, capacities of aircrafts, percentage of booked seats)
- Financial indicators (financial outcome, profits, revenues and expenditures)
- The dynamics of booking (on a flight of a group of flights)
- Predictions (statistics on passenger traffic on a certain flight, No-Show data, statistics on passenger load factor)
- Departure confirmation (information after the departure of flights: No-Show data, data on passengers according to the booking class)
- The dynamic of the average revenue rate (dynamics of uploaded data on revenue rate)
- Individual user reports (users can create their own reports based on any report listed above)
Sirena-Travel CJSC offers consulting services including training and customizing Sirena.Revenue according to the business processes and individual characteristics of the airline, as well as integrating the system into the infrastructure of the customer. A smartly developed concept of revenue management (organizational structure, well-regulated management of employees involved in revenue management as well as an effective mastering of RMS) and the precise adaptation of Sirena.Revenue to this concept will provide airlines with a smart tool for the accurate calculation of the most profitable conditions of airline content sales.