Sabre Commercial Analytics

Smarter Decisions. Faster Actions. Optimized Outcomes.

New technology is coming soon that supports total revenue optimization and clears the path for airlines to capitalize on a full range of revenue opportunities and become better retailers.

While airlines typically excel at collecting data, many lack the capability or technology to fully analyze, leverage and action that data.

Revenue production within an airline is the product of many interconnected and sequential activities across many functions and silos. When commercial-planning departments are managed in isolation, significant challenges arise, including multiple versions of the truth throughout the enterprise, an inability to view macro trends and changing market conditions and, most importantly, missed revenue opportunities.

For airlines to maximize revenue and thrive in an increasingly competitive and evolving industry, they must transition to a more customer-centric model that helps them improve their retailing capabilities while capitalizing on a full range of revenue opportunities. This is precisely what Sabre’s Commercial Analytics was designed to do.

Knowing that the key to transitioning to a customer-centric model is effective customer segmentation, imagine if your airline could intimately understand who its customers are, inclusive of their buying behaviors. Imagine if your airline had a tool that enabled users to design targeted bundles by customer segments and drive up to 0.7 percent in incremental revenue.

Introducing Commercial Analytics

Commercial Analytics offers a new analytical approach to managing and leveraging data within the airline commercial-planning process. This innovative technology, which will launch later this year, will allow carriers to strategically drive incremental revenue and build their brand while becoming better retailers.

The solution simplifies and facilitates consistent decision-making by delivering unique and forward-looking, actionable insights that empower smarter decisions, drive faster actions and optimize outcomes. Ultimately, allowing airlines to progress toward total revenue optimization (incorporating and optimizing all revenue streams to focus on revenue per passenger versus revenue per seat).

Commercial Analytics is tailored to a carrier’s needs, regardless of its maturity in analytics or size and drives value by:

  • Maximizing revenue,
  • Extending a competitive advantage,
  • Empowering better decision-making at all levels by offering one version of the truth,
  • Improving commercial-department efficiency and productivity.

Capitalizing on Sabre’s industry-leading operations-research expertise, Commercial Analytics offers market-differentiating capabilities not typically available from vendors or developed within airline-technology departments. The technology encompasses four primary capabilities. Integrated market metrics, the proration engine, customer segment analyzer and predictive intelligence are true differentiators and collectively drive the realized benefits of Commercial Analytics.

How it works

Commercial Analytics is an analytical application that runs on an integrated database, which consists of booking, ticketing, inventory, customer data, etc. When this data is processed through the proration engine, it generates accurate, forward-looking revenue streams.

Integrated Market Metrics

Integrated market metrics promote collaboration among departments regarding common goals. It introduces reliable and uniform network and market-level KPIs (key performance indicators) across commercial planning and provides the ability to benchmark macro KPIs against the previous year, as well as the budget. The Commercial Analytics user interface strings together specific insights into a guided story to explain the “why” or the detailed reasons behind the data, ultimately driving consistent decisions.

The Proration Engine

Many airlines are challenged with the inability to accurately portray a complete revenue picture that includes insight into projected revenue from codeshare and alliance partnerships. The proration engine addresses this problem. It processes the latest ticketing data and calculates more precise revenue estimates by fully factoring in the effects of revenue-sharing agreements between two carriers. The result is forward-looking visibility into accurate network and market performance and a much more realistic and comprehensive view of revenue.

Customer Segment Analyzer

The customer segment analyzer improves understanding into customer buying behavior. This capability helps airlines further understand customers and market segments. Customer behavior evolves based on their travel purposes (i.e., business, leisure, family). By evaluating transactional airline data, the concept of customer trip segmentation becomes real and allows for natural and meaningful customer groupings (flight segment, entire trip, individual customer level) based on typical traveler behavior. The output provides newfound visibility into customer-segment attributes and maps a customer’s propensity to spend more with a carrier.

Predictive Intelligence

Predictive intelligence enables airlines to coordinate and optimize responses to changing market conditions. With its library of recommended actions that correspond to various performance scenarios, Commercial Analytics helps airlines predict and identify the best resolution in any given situation. The root-cause analysis and recommendation component identifies key performance metric patterns, executes root-cause analysis and provides options to address underperformance issues.

Moving Forward

Commercial Analytics’ primary intent is to help carriers move substantially forward in becoming better retailers, better serving their customers and finding missed revenue opportunities. Does your airline have analytical tools that offer one version of the truth while identifying missed revenue opportunities? Are you ready to move forward?