Acknowledging fractures

‍

Think about everything you ever heard, read or experienced about Revenue Management. Let’s boil it down until we get its most pure essence. Poetic definitions and fancy words aside, RM is everything you can do to maximize revenue given a fixed capacity. Precise and concise as it sounds.

Despite the product, some industries’ peculiarities or the complexity we might find; in its essence revenue management as a discipline has one simple objective. Again, maximize revenue with a finite quantity of goods.

‍

It’s because of market dynamics, inherent economic variability and vertiginous technology advancements within different contexts and business models, that RM quickly evolved to respond to different needs. Somewhere in between the airline deregulation act of 1978 and where we are now standing, the complexity around RM started increasing exponentially and at a phase that made it hard to keep up with.

There is nothing wrong in pursuing a new method or technology to overcome an unsolved issue.  Innovation is not a problem if it can be absorbed and adapted properly. But just like any other learning process, there are no shortcuts or skipping phases. No one can run without first learning to walk.

‍

It’s tempting to start looking into micro segmentation for dynamic offer personalization, applicable A.I. processes, machine learning algorithms to increase forecast accuracy, total eCommerce integration or ancillary optimization just to name a few fun trending topics from an endless list that keeps on growing every year.

Some airlines are mature enough to tag along with the overwhelming creativity wave around Revenue Management and can take advantage from its constant innovation. But truth to be told, most are not quite there because of their current set of skills, lack of processes, poor data quality or inadequate technology. Often these foundations are taken from granted and reveal a clear gap that restricts airlines to achieve their true potential.  

‍

TARMAC eliminates this gap by focusing on RM foundations: People development, lean Business Processes, accurate Information and precise Technology configuration. We customize best RM practices to tailor fit the airline needs and deliver tangible performance results within a transformation period.

‍

‍

                      Thrust and lift allow us to fly, but it’s on the runway where these combine to takeoff.
                                It’s because of a strong TARMAC foundation that we can get up there at all.

‍

‍