Increasing margins by managing carrier market-share


Increasing margins by managing carrier market-share

Problem

Based on his own sales reports, Aaron wasn’t sure why the recent increase in ticketed sales did not translate to increased margins.  As the sales manager of a major consolidator with 200 sub-agents, he had to pinpoint the problem.

Solution

He called his colleague John, the head office accountant, for some guidance. Very quickly, John organised a user-login for Aaron to start using Airline Metrics’ web application.

As soon as he looked at the Carrier Market Share graph by Destination, it was clear why his margins were lower than expected.

Outcome

It was evident that some of the European carriers that he had signed incentive deals with were not being sold as much as he expected. He needed to communicate with and channel his sub-agents to switch to the more lucrative deals, due to the new tactical fares that had been introduced to the market.

Aaron now keeps a close eye on this particular graph to monitor market-share swings on the various carriers sold.

Note: Combining market knowledge like upcoming capacity increases used alongside market share reports on passenger and revenue numbers, helps proactively manage shifts to preferred carriers including planning joint promotions, such as tactical offers and then measuring their success quickly, clearly and easily.