Xiamen Airlines has been experiencing significant growth over the past three decades. In fact, the airline handled 32.7 million passengers in 2017 alone and achieved profits 31 years in a row. In order to pull ahead of its competition in the domestic and international markets, the airline is now using SITA Airfare Insight to optimise its fares-related decision making.
As an airline, how do you know if your fares are competitive enough in the market? Xiamen Airlines wanted to find out the same thing, which is why they looked to technology.
Xiamen Airlines has been experiencing significant growth over the past three decades. In fact, the airline handled 32.7 million passengers in 2017 alone and achieved profits 31 years in a row. In order to pull ahead of its competition in the domestic and international markets, the airline is now using SITA Airfare Insight to optimise its fares-related decision making.
More than 180 million fares are published worldwide at any one time, and typically full-service airlines will update fares throughout their distribution network of GDSs, travel agencies and websites several times a day. By using SITA’s Airfare Insight, Xiamen Airlines is now able to set its fares based on what its competitors are doing across different markets. It then immediately ensures appropriate prices are in place to support the airline’s overall commercial strategy.
Chen Rong, committee secretary, passenger marketing & sales of Xiamen Airlines, is particularly excited about this new adoption, “Filing fares at the right price and at the right time can have a significant impact on profit margins. SITA’s technology enables our commercial team at Xiamen Airlines to have the right fares distributed to the right customers. It also gives us the capability to analyse all our fares and manage them across multiple locations and time zones, which is vital as we expand our route network.”
SITA vice president and general manager for East Asia, May Zhou, added that the correct pricing can contribute to as much as three to 10% of overall revenues.