DISCOUNTING - THE HOLE BETWEEN TICKET VALUES AND CASH AT
Discounting is a major fact of airline life outside certain key free markets, such as the USA
and increasingly, Europe. Yet how many airlines manage it effectively? Most airlines struggle to reconcile the revenues reported by their revenue accounting systems with the cash received at the bank - and fail. The reason is simply that the discounts issued at the point of sale are not reflected anywhere within the accounting system.
Discounting without proper control leads to major yield damage, through the use of incorrect passenger/segment values during yield and inventory planning. In the worst cases, the imbalance between reported revenues and cash at bank can cause major (and expensive) cashflow problems.
Mazro Consulting has long experience of auditing and suggesting discount control mechanisms for airlines. The key to success is achieving the right balance between fast, flexible market responses, and achievement of corporate net revenue and yield targets.
We can help you maximise your returns, and reduce your marketplace risk.