Breaking Revenue Management axioms.
The Pandemic´s B Side. Innovation and efficiency
Montevideo, November 2020. -
Viva Air, the low-cost airline group created by Irelandia Aviation, and TARMAC, a consultancy firm specialized in RM & Pricing, have redefined Revenue Management processes to overcome the challenges imposed by the pandemic. Last September Viva Air took the first step into unexplored territory in the region by outsourcing Revenue Management processes with TARMAC's BPO (Business Process Outsourcing) team.
The commercial aviation industry faces one of the most challenging times in its history due to the pandemic. The drop in revenue, passenger demand, and the restrictions imposed by different countries, poses challenges that require greater flexibility and creativity in commercial terms. Likewise, the impact on the industry generated new scenario sand opportunities within the airline organization.
Revenue reductions have forced companies to reorganize their teams, in many cases, keeping only essential personnel for reduced operations. This caused many RM teams and other technical areas to adjust to the uncertainty of the future and to the growing interest in these profiles by companies that had significant growth during the pandemic.
About VIVA AIR
Uncertainty brings with it the rethinking of many strategies and finding a way to regain the confidence of travelers when flying. The airlines that will emerge stronger will be those that detect and respond more quickly to market signals.
"Viva Air acted accordingly and relied on the experience of the TARMAC team to carry out the RM strategy through a BPO” - Rodrigo Rioseco, Revenue Management Manager at Viva Air.
About TARMAC
TARMAC, through RM's BPO, offers processes and solutions of excellence, which are quickly adapted to the needs and context of each market. It has an experienced RM team, which is capable of implementing a standardized agenda and applying dynamic strategies, which are reviewed and calibrated as trends change in each market. In addition, TARMAC offers technological and information solutions that facilitate decision-making, both in RM, and in Pricing and planning for each market, making it possible to capture the income potential that each one of them presents and detect risks in advance.
In this way, the BPO service helps the airlines in the region by facilitating the recovery of revenue to be carried out in the shortest possible time, optimizing tactical and strategic decisions in pursuit of this objective.
It is important to note that, even though the BPO team works remotely with its clients, communication is fluid and decision-making is not affected by remote work.
"The response time is very short. After instances of weekly review programs that we have established, the agreed actions were taken and in a matter of hours, solutions were implemented. This would not be possible without the joint effort of the Viva Air team and BPO. Thanks to this commitment, we reached a level of response and implementation that I have never seen in my years of experience in the industry. " - Emiliano Neirotti, TARMAC ASSOCIATE
TARMAC BPO is an alternative that allows airlines to have a fast and efficient implementation of RM best practices. Either to maintain RM processes, while hiring and training their own team, or for the long-term and outsourcing, most RM processes to a team with the necessary experience that ensures results and implements cyclical processes for continuous improvement.