Issue link: https://pros.com/learn/i/1067900
Revenue Management Essentials | 3 PR O D U C T G U I D E How RM Essentials Works: Key Capabilities for Maximized Revenue and Productivity When Historical Data Isn't There Whether an airline is a start up or concerned about noisy historical data, RM Essentials provides a comprehensive set of tools to provide actionable insights and forecasting based on business rules. With Demand Sponsorship, RM Essetials provides a flexible selection of target and source market dimensions. This allows airlines to quickly begin to reap the value of a revenue management solution, while remaining flexible to adopt business strategies into system rules as the marketplace continues to shift. And as historical data for the airline builds, RM Essenstials is available to grow into a fully science-based solution driving additional incremental revenue. Advanced Forecast Methodology RM Essentials employs a Bayesian Forecast methodology, which models demand throughout the booking cycle during ranges of days prior. Information is shared across those periods so that the impact of what happens early on in the booking cycle can be shared with the periods later, before the flight has departed. The methodology is an intuitive process that learns over time and can learn quickly, which helps the airline maintain accurate forecasts in a rapidly changing environment. Separate forecasts for bookings and cancellations are created to pick up on trends that may develop in booking or cancellation rates, which may be hidden in a net rate. The forecast process for holidays and special events not only models the behavior of past events but, also incorporates recent trends.