Chinese carrier Xiamen Airlines – which is experiencing major growth across its domestic and international network – is now using software from SITA as it looks to set competitive markets in all markets.
The airline handled 32.7 million passengers in 2017 and has achieved profits 31 years in a row and 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.
SITA’s said Xiamen Airlines “can stay ahead of the competition” as it can set its fares based on a clear view of what its competitors are doing in markets across the world. Airfare Insight automatically identifies the relevant fare changes in the marketplace. It then immediately ensures appropriate prices are in place to support the airline’s overall commercial strategy.
Xiamen Airlines committee secretary for passenger marketing & sales, Chen Rong said: “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 analyze all our fares and manage them across multiple locations and time zones, which is vital as we expand our route network.”
Xiamen Airlines serves nearly 400 domestic and international routes covering China, Southeast and Northeast Asia, Europe, North America and Oceania. With 1,074 destinations in 177 countries making sure the right fares are published in the right markets is challenging.
SITA Airfare Insight automatically identifies the relevant fare changes in the marketplace. It then immediately ensures appropriate prices are in place to support the airline’s overall revenue management and sales strategy.
SITA vice president and general manager for East Asia, May Zhou said industry studies indicate that correct pricing can contribute three to 10 per cent to overall revenues.