Quick Hits to Increase Revenue by Overbooking Effectively

Overbooking profiles are not numbers generated at random, they involve a high degree of data mining, management and application. The risk taken can yield revenue benefits that range from anything between £0.5 M to upwards of £300 M depending on the size of the airline. Given the size of the revenue advantage, what holds airlines back from overbooking? For those airlines that don’t overbook due to a risk averse management style or a lack of understanding about how to effectively contain unnecessary denied boarding situations, they are clearly missing a trick.

In this course we are going to dispel the myth that overbooking is only valuable for airlines with very high annual load factors, that it can cause more cost implications than revenue benefit due to denied boarding, that it leads to PR disasters and so on. We will also talk about the types of overbooking, how to manage, measure and contain it to deliver the best outcome. If you are a revenue manager who sees full flights day after day that travel with less than a 100% load factor due to a senior management aversion to risk, we will teach you how to quantify the total benefit to help you with a business case for implementation.

At the end of this course, participants will be able to:

• Differentiate between No-show and Cancellation profiles
• Learn how No-show and Cancellation profiles are calculated
• Calculate the amount of revenue loss, if you do not overbook
• Manage the Risk - using RM KPIs
• Manage the end to end process of implementation with other departments, avoiding common pitfalls
• Build a Business case to convince Senior Leadership about the true revenue benefits of overbooking

• Revenue Managers
• RM Analysts 
• Finance Managers
• Airport managers