Airline Revenue Leakage

IntelliBuddies®and Airline Revenue Leakage

Airline Revenue Leakage

Over the past few years, airline industries have witnessed low profit margins per passenger. IATA, in its forecast of 2019, revealed that net profit per passenger in airline industry is about $8.90. With such low profit margins, airlines have been focusing on better operational efficiency and revenue maximization. However, the goal of maximizing revenue is marred by revenue leakages. Revenue leakage is primarily difference between bookings made vs its realization. Major revenue leakage is attributed to factors such as incorrect, un-ticketed, multiple bookings, non-compliance to fare rules, changes and cancellations. Agents issuing tickets largely discard fare rules such as ticketing time limits and breaking sectors. Any such bookings without realization also adds up to charges paid to GDS by airlines. To recover these losses, airlines issue agent debit memos (ADM) which are mostly not compliant with.

IntelliBuddies® in Action

  • Automated prevention of booking revenue leakage
    Unattended Buddies in IntelliBuddies® periodically collects information from multiple sources such as billing information data tapes, flight information, GDS cost files. IntelliBuddies® out-of-the-box connectors, allow easy sourcing of data through these disconnected systems. Buddies aggregate the data for smart auditing. It then traverses through the data to find leakages by detecting duplicate, multiple bookings and other fraudulent behaviour.
  • Automated ADM tracking and reportingMost of the ADMs issued are not followed for recovery as airlines fear damaging relationships with big & powerful airline agents. Attended Buddies in IntelliBuddies® go through all ADMs raised and prepares report of agent-wise performance analysis including additional GDS cost they might have incurred. These reports help airlines to formulate strategy to handle airline agents based on losses they might have caused.

IntelliBuddies® powered by its Buddies and infused AI, ML, helps airlines to plug-in major problem of revenue leakage by providing data based real time insights. These automated insights not only saves time on manual labour but helps airlines take real time decisions in order to realize profitability objectives.

Airline Revenue by N/A is licensed under Unsplash

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