Revenue Integrity
Revenue integrity (RI) is ensuring that the right passengers travel on the "right flight at the right time and at the right fare".
Revenue leakage occurs where the difference between the business that is booked with an airline and the actual net revenue that is received post-travel has a significant gap.
The three main sources of revenue leakage for all airlines are:
- Accidental revenue abuse from badly trained staff at travel agencies and airlines;
- Airline-originated due to unintentional creation of various problems during the schedule change process, eg misconnections;
- Deliberate revenue system abuse from creative travel agents or customers.
So, what is the net result of the combination of these abuses to an airline? First, and perhaps the biggest impact, are increased no-shows and late cancellations.
While overbooking can recover some of this damage, the very fact that the underlying booking data are not robust can create additional problems, with unreliable overbooking actions resulting in offloads or downgrades. Therefore, it was concluded several years ago that remedying these problems was the real answer to the problems being encountered.
The benefits derived from good revenue integrity processes being in place are:
- increased customer access through the removal of fictitious PNRs, hence improving revenue result and improving customer satisfaction levels
- reduction in on-departure no-shows and late cancellations
- reduction in over forecasting, resulting in improved seat factors and revenues
- stabilisation of reservations data quality and consequently an improvement in revenue management’s results
- reduction of many costs elements to the operation, such as meal wastage, reduction in customer service costs by matching resources to accurate demand, and tuning capacity to demand. This can be achieved either via an ad hoc schedule change approach, or by the changing components of a future schedule such as capacity, frequency, routing or product.
This course which has been developed by Paul Rose, the Father of Revenue Integrity, will provide you with a general overview of revenue integrity concepts and theories.
Relevant articles, papers, and presentations, have been collected and are available from our online learning centre, to enhance the learning experience, and provide real-life examples and case studies.
A highly qualified instructor will be assigned to guide the participant throughout the duration of the course. The instructor will provide feedback on each comprehension assignment as well as the final assignment paper. Please note that all our instructors possess current practical working experience.