ATA.ONE's distribution strategy outperforms traditional methods
Airbus A380 British Airways

ATA.ONE's distribution strategy outperforms traditional methods

This business case clearly demonstrates how ATA.ONE can help airlines increase revenue. It also illustrates how a legacy carrier can compete with a hybrid carrier on the same route without compromising revenue or key financial ratios.

ATA.ONE is a fully automated, unique bi-directional distribution platform for distressed inventory. It seamlessly connects unsold seats with the highest passenger bids, enabling airlines to maximize revenue. Airlines retain full control over pricing, seat allocation for bidding, and the final decision on whether to complete a sale.


ATA.ONE

The following example route features a direct round-trip economy class flight from London to New York, operated by British Airways and JetBlue . The itinerary is for one adult passenger, including one cabin bag and one checked bag. The outbound flights depart between 4 Feb - 11 Feb 2025 with the return flights between 11 Feb - 18 Feb 2025.

British Airways' Average Revenue Per Passenger (ARP) has shown consistent growth over recent years. According to the airline's annual reports, the ARP was £241 in 2021, increasing to £279 in 2022 and £295 in 2023. The estimated ARP for 2024 is projected to reach £303. This upward trend reflects the airline's improved revenue generation per passenger over time.


Case 1. British Airways RM vs ATA.ONE performance

Fare Data extracted for last 7 days prior to departure

Seven days before a flight's scheduled departure, ATA.ONE opens bidding for available seats, starting at a minimum bid of £372. This starting bid is already 23% higher than the average revenue per passenger generated through traditional sales channels, ensuring that winning bids will yield even greater revenue for airlines.

Some revenue managers express concerns that ATA.ONE could cannibalize traditional ticket sales. However, our analysis suggests otherwise. Travelers who need to fl y on specific dates have typically purchased their tickets weeks or months in advance. Additionally, passengers with strict travel requirements are unlikely to participate in the bidding process. Our messaging reinforces this: if you must travel, secure your ticket early.

Even in a hypothetical scenario where ATA.ONE accounts for an entire flight’s ticket sales, the airline would still generate more revenue than through traditional channels—ensuring financial stability rather than disruption.

From the passenger's perspective, bidding opens seven days before departure, a reduction from the previous 14-day window due to Stripe's payment processing limitations on holding funds. Through ATA.ONE, passengers can achieve savings of 45-50%, which they perceive as a significant advantage. Even if savings drop to 15-20%, many still value the opportunity to "beat the system."

Ultimately, ATA.ONE offers a win-win solution: airlines maximize revenue while maintaining full control, and passengers enjoy substantial savings. That’s the ATA.ONE advantage.


Case 2. British Airways & ATA.ONE vs jetBlue

Comparison Data British Airways with

Here is an example of how legacy carriers can effectively compete with hybrid carriers. On the same route and travel dates, a legacy carrier could sell all distressed inventory at a 31.68% higher revenue per passenger compared to the company’s average revenue per passenger (ARP). Simultaneously, the legacy carrier remains more cost-effective, offering fares 6% to 39% lower than a hybrid carrier, with an average price difference of 23.02%.

*) jetBlue ARP = £159 in 2023

One of the key advantages of ATA.ONE is that passengers can place bids on all available fare classes offered by an airline without requiring a previously purchased ticket.

Learn more how to increase your airline passenger revenue at www.ata.one

Star Alliance International Airlines Group (IAG) SkyTeam oneworld Alliance Delta Air Lines American Airlines Emirates Qatar Airways United Airlines

#business #revenue #airline #managment


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