This archive report was first published on 4 December 2019.
Kenya Airways Implements Africa's First Automated Revenue Management System ¶
Kenya Airways has rolled out an automated revenue management system, making it the first airline in Africa to do so. The system, known as the Altéa Network Revenue Management System, is designed to improve the airline's ability to predict consumer behavior and optimize returns from all bookings made.
According to Kenya Airways CEO Sebastian Mikosz, the new system will enable the airline to understand its customers better and offer more competitive fares. 'As the market dynamics and our customer behavioural patterns change, it is important to continue innovating and improving processes to meet those changes,' Mikosz said.
The system will also help the airline strike a balance between late booking high yield markets and early booking low yield markets, a major challenge for airlines in revenue management. With this solution in place, Kenya Airways will be able to maximise on the late high yielding demand while still catering to the early booking traffic.
The implementation of the new system is part of Kenya Airways' turnaround strategy to keep growing revenues and continuously improve the customer journey. The airline has been struggling with low profitability, with high cost of fuel eating into its profits for the year that ended December 2018.
Kenya Airways' Chief Commercial Officer Ursula Silling hailed the new system, stating that it will not only set the airline's books of account in order but also revolutionise travellers' experience. 'Our customers are at the core of all we do and this is why implementing cutting edge technology that makes the customer journey more pleasant is a big deal for us,' Silling said.
The system has been implemented by Amadeus, and Kenya Airways is expected to sustain growth by leveraging on the agility of the system to react to an ever-changing industry.
Published on December 4, 2019
