The potential for increasing profits with revenue management in the travel industry is a well-established fact. Despite this, there are still service providers not practicing revenue management
The Challenges
The travel industry is under pressure and the small- to medium-sized providers face a lot of unique challenges. Some of the main challenges are:
• Pressure on their revenue streams due to:
- Over supply of capacity in the market
- Markets that remain price-sensitive
- Low yields
- Competing against dominant providers with vast networks and prominent alliance partners
- Revenue opportunities not captured
• Lack of expertise in revenue management and strategic pricing
- In-house expertise can be expensive
- Providers resort to expensive consulting and training solutions
- There is limited continuity after the consultants leave
- Risks are not minimized
• Limited access to market data
- Pricing and market share are not optimized
Download our Transportation Revenue Management brochure