Signal Hill

We set up the forecasts and inventory controls that decide which price is open

Every night, revenue management decides which price points stay open on each flight. We check how your system forecasts demand and controls the inventory, set it up with your team, or run it for you.

  1. 1Forecasting
  2. 2Inventory control
  3. 3Overbooking and no-shows
  4. 4Origin and destination control
  5. 5Measurement
  6. 6Managed revenue management

Inventory control is only as good as the forecast behind it

Forecasting

The forecast decides how many seats to keep for passengers who book later and pay more.

We check how your system forecasts demand by flight, booking class and days before departure, and how it forecasts cancellations and no-shows. A closed booking class hides the passengers it turned away, so the booking history has to be corrected for them before it can estimate demand. We measure forecast accuracy by route and set the history, seasons and events the forecast should use.

One number per flight can open and close every price

Inventory control

Analysts cannot set a booking limit for every class on every flight by hand.

We control each flight with one number, the bid price: every fare above it is open and every fare below it is closed. The system updates it every night from bookings and the forecast. We check how often availability changes, what each manual override earned or lost, and set up controls your analysts can check in a morning.

Seats sold70Forecast rangeBooking class open for saleVQMHBY60 days outDeparture
Illustration

Overbooking fills the seats that no-shows leave empty

Overbooking and no-shows

Some booked passengers do not turn up. Without overbooking, their seats fly empty.

We forecast no-shows by route, day and fare, set how far each flight may be overbooked, and weigh the revenue from the extra seats sold against the cost of a passenger who cannot board. Standby passengers and volunteers close the remaining gap at the gate. Each market has its own compensation rules, so the limits differ by route.

On average about one booking in ten does not show, according to a 2016 textbook cited by the US Government Accountability Office (GAO-20-191).

A connecting passenger takes a seat on two flights

Origin and destination control

Selling a connecting journey makes sense only if it earns more than both seats could earn from other passengers.

Origin and destination control lets the reservation system answer each request by journey and point of sale, with married segments, so a connection cannot be split, priced or cancelled flight by flight. We check what your system supports, where it answers by flight only, and what that costs on your busiest connections.

Every change is measured against flights that did not change

Measurement

A change in revenue means little without a comparison.

We switch between old and new settings on comparable flights, so season, rivals and schedule affect both. Your finance team agrees the method before the first change, and the result goes into their reporting. Seven questions show how to read any uplift figure, including ours.

Route groupsW1W2W3W4W5W6W7W8Group AGroup BGroup CGroup DNew pricingOld pricingWeeks switch between old and new, so both run on the same routes.
Illustration

We can run revenue management for you

Managed revenue management

Not every airline wants to build its own revenue management team.

We take over the daily work on your own systems: we review the forecasts, set the inventory controls and overbooking, file fare changes and watch rival fares. You get a report every month with results against control flights. Your team keeps full access, and we hand over whenever you want to run it yourself.

A revenue management project ends with controls your analysts can run

  • Forecast accuracy by route and days before departure
  • Revenue earned or lost by manual overrides
  • Inventory control by bid price, with checks for each morning
  • Overbooking limits from your own no-show data
  • Availability by journey and point of sale
  • A test design your finance team signs off
  • Results by route, with control flights
  • A monthly report when we run it for you

Inventory control can only open the prices that pricing has filed

The fare structure decides how many prices each flight has. The Method page shows the whole loop from plan to gate.

PricingContact us