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Lufthansa Systems strengthens its commercial portfolio ...
Stefan Auerbach talks about new revenue-boosting products
The economic environment has not been kind to Europe over the last couple of years, and a year ago Lufthansa Systems took steps to realign the company not only for significant cost reductions but for an equal amount of revenue growth as well.
It reorganized into profit centers that are defined by the customer base.
The commercial division has focused on tools that help airlines boost their own revenues, Stefan Auerbach, senior vices president of airline solutions, said.
Among them is a new revenue integrity solution that aims to improve airlines’ financial results by 2% to 3% — perhaps more, depending on an airline’s practices — by “cleaning up” bookings made through GDSs.
The solution looks for duplicate bookings, fictitious names, unticketed bookings and other signs that a booking is not likely to produce revenue.
It flags the bookings and gives the airline the opportunity to return the unused seats to the available inventory.
Auerbach noted that as the integrity of bookings increases, it can have a significant impact on forecasting, so its fifth generation of revenue management tools take that into account.
Lufthansa Systems foresees a tighter marriage of revenue management and pricing systems, resulting in forecasts that can trigger automatic fare changes, for example.
The company also is looking to bolster its position in regions outside of Europe, particularly in Asia, in order to lessen its exposure to regional economic downturns and other variables.
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Read about GDS companies’ improved earnings in the May 15, 2012, issue of TTU.
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