Summary:
We identified an extra $250,000 in annual income on existing sales for a mid-sized OTA which was untapped for years.
The Problem:
A mid-sized OTA had been growing over several years and were having great success with their ability to promote different airlines at different times. With lucrative incentive contracts on hand they were able to tweak the levers of their business to generate great returns. Mark their Air Contract Manager was thinking about where else they could generate more revenue and income from for the next financial year to continue their growth.
The Solution:
This coincided with the timing they introduced Airline Metrics into their business to have a more wholesome framework for their air division. The OTA had decided to process two years of historic data and when they went live with the Airline Metrics solution they had access to a very rich set of information. One report Mark focused heavily on within the first few weeks was the Flown Revenue report.
He was surprised to see the amount of flown revenue being picked up by several offline carriers that were not even flying to their country. He realised that other carriers on which they were ticketing these airlines were delivering them to a mid-point destination from their home market but the partner carriers (which were offline in Mark’s country) would pick up a big chunk of the onward long haul routes. This meant that they were losing out on the revenue from those sectors despite channelling the business to those airlines.
The Result:
Almost every offline carrier on that list was represented by a GSA in Mark’s country. All he had to do was pick up the phone and ask them about incentive agreements. Before he did so he sent them the last two years performance and the current year position extracted from Airline Metrics and his vision on how they could continue to support and grow that carrier’s sales. The GSAs were more than happy that Mark reached out with a clear statement of position on sales and revenue and most were able to setup an agreement for the business which generated an additional $250,000 in annual income for that financial year. Mark was promoted the following year as Head of Air Division for the OTA.
