Maximizing All Airline Revenue Streams

Airline revenue streams have evolved significantly over the last decade. Historically, maximizing revenue used to involve the optimization of ticket sales across an airline’s network – with some basic and often manual consideration for the impact of group bookings, corporate travel and perhaps, codeshare bookings.

Today, airlines generate revenue from numerous sources, including bag fees, preferred seating fees, and the merchandising of a wide variety of goods and services before, during and after a passenger’s flight. These additional revenue streams can contribute up to 30 percent of total revenue for an airline, depending on its business model.

As the industry transforms and a larger portion of total revenue flows from sources other than the sale of seats at base fares, airlines must become adept at managing these revenue streams beyond the natural silos that exist within their organizations and transform themselves into retailers.

To generate maximum revenues from all possible sources —the answer is Total Revenue Optimization, or TRO.

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