5 Ways to Reduce Cost & Increase Revenue.
Shah Rahman
Fractional Chief Transformation Leader, Senior Strategist, and Revenue Catalyst with 15 years of hands-on experience in Driving Global Market Disruption, and Transformative Revenue Growth. | Ex: ICICI, BMW | Mahindra.
1) Connecting to Enthusiast: Book multiple connecting flights for "Flight Enthusiast" and charge a little more as they will willingly pay. On the other hand, offer direct flights to people with "Aerophobia" or urgent flyers or last minute bookings.
2) Overbooking+Waitlist+Bidding: Overbooking and bouncing are normal, but introduce a waitlist confirmation system, occupancy will increase, and the bouncing risk will be mitigated. Also, charge more on waitlist confirmation and if possible use bidding. Let the customer bid for the last urgent seats on highly dense and busy routes.
3) Festive Bidding: High prices on last-minute bookings, urgent bookings, and festive dates are common, but if a certain percentage of seats are kept open for bidding then you will get the highest price possible. Put the minimum bid, and time duration reverse clock to close. Confirm the seat to the highest bidder with advance payment and zero cancellation return.
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4) Introduce Cargo Ship Option: Let the customers select an option that allows them to send their luggage via cargo instead of carrying it with them on the flight. This way you will reduce the weight of the flight and add additional seats (passengers) with additional revenue. The luggage will come after a day or two in cargo with all those who selected this option. They can show their ticket, and ID and collect the luggage from a special window outside the airport. The collection window will be 48 hours post-arrival, after that additional charges will be applicable.
5) Reduce Cost: Reduce staff as much as possible by automation. Fix loopholes, streamline processes, value chain, use Kanban, and drive Kaizen across the organization each employee has to give one kaizen minimum that directly or indirectly affects the cost-cutting and revenue improvement. Fix the top 80% of complaints arising due to 20% reasons. See if you can sell more food in flight by reducing cost, so not playing on margin, but playing on numbers, count of people opting for food.
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