Sabre leads in next generation revenue management

Published on : Monday, January 7, 2019

As revenue and pricing optimization take center stage today at STX Singapore, Sabre Corporation  announced the results of a recent study evaluating its next generation Revenue Optimizer solution. PODS Research LLC (PRL), the premier consulting partnership renowned for its study of revenue management systems and practices, evaluated Revenue Optimizer and noted the new solution’s “much improved architecture, speed and stability” compared to previous versions. PRL consultants also found the underlying models to be “theoretically sound and based on solid science” and “struggled to find major modeling or other weaknesses.” Adding to PRL’s findings, long-standing Sabre partners Aegean Airlines, Aerolíneas Argentinas and Ethiopian Airlines have endorsed Revenue Optimizer following their successful evaluation and initial experiences with the solution.


“We are thrilled to have this third-party assessment of our next generation revenue management product,” said Dave Shirk, Sabre president of Travel Solutions. “It’s a confirmation that the innovations we’re building into Revenue Optimizer provide real-world value to our customers. We received stellar marks for its intuitive user interface, customer choice modeling and interoperability with our existing products – all benefits we’ve been very deliberate about pursuing, and we look forward to adding more refinements in the future.”


“We’ve been using Sabre revenue management for more than 10 years, so moving to Revenue Optimizer was a logical next step for us in a long-standing partnership,” said Roland Jaggi, director of revenue management at Aegean Airlines. “Our analysts love what they’ve seen. From a user interface and interaction standpoint, Revenue Optimizer is bringing revenue management to the 21st century and is further building on its leading position in the market.”


Revenue Optimizer’s strength lies in its ability to provide airlines with end-to-end control of selling seat inventory, with estimates that Revenue Optimizer can help airlines increase revenue by as much as 2 percent – a significant boost in an industry where additional revenue opportunities are difficult to uncover. Among the key differentiators and competitive advantages PRL consultants Dr. Peter Belobaba and Dr. Bill Brunger noted in their findings were Revenue Optimizer’s market-level forecasting; seasonality; ability to estimate traffic and allocation; improved architecture and speed; and easier transition from leg seg to O&D (origin and destination) with the new Sabre revenue management system, if an airline plans to transition to a new passenger service system.


For Aerolíneas Argentinas, the flag carrier of Argentina, implementing Revenue Optimizer was a crucial goal in 2018. “Thanks to enhanced forecasting capabilities and a user-friendly dashboard that increases productivity, our analysts have exceptional decision-making tools to better inform their long-term strategies,” said Alejandro Castignani, Aerolíneas Argentinas revenue management and distribution manager. “We couldn’t be more pleased that the implementation process went so smoothly. This next generation tool is vital in a market where competitors are adopting increasingly aggressive and dynamic tactics, and Revenue Optimizer gives our highly skilled analysts the tools they need to lead in an ultra-competitive environment.”


These sentiments were echoed by Rahel Assefa, vice president of marketing management at Ethiopian Airlines. “As a leading aviation group in Africa, we had to adopt best-in-class technology solutions. We know we can count on Sabre to help us accomplish our goals and accelerate growth,” Assefa said.


Sabre plans to launch two additional pricing solutions that complement Revenue Optimizer – Fares Optimizer and Dynamic Availability – next month at Aviation Festival 2018, one of the largest aviation and travel technology shows in the world.


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