Kenya Airways adopts new revenue management system to boost revenues

December 06, 2019: Kenya Airways has rolled out a new revenue management solution to help the airline predict consumer behaviour and subsequently improve availability and pricing offers. 

In a statement, the airline said it is the first African airline to implement the Altéa Network Revenue Management System (ANRMS) to optimise booking returns and increase overall revenues. The system is a complete passenger service system (PSS) that offers full reservation, inventory and departure control capabilities, delivering a unique, integrated solution.

The technology has been introduced at a time when the national carrier is struggling to return to profitability after its loss for 2018 rose to Sh5.9 billion from Sh5.1 billion the previous year.

According to Kenya Airways, the biggest challenge for airlines in revenue management is striking a balance between the late booking high yield markets and the early booking low yield markets. This system has been implemented by Amadeus.

''With this solution in place, Kenya Airways will have the ability to seamlessly maximise on the late high yielding demand but still cater to the early booking traffic whilst remaining competitive,'' Kenya Airways’ chief executive officer Sebastian Mikosz stated.

Mikosz, who will exit the airline by end of this month, said that the solution is part of the airline’s turnaround strategy to keep growing revenues as it continuously improves customers' experience.

“This exercise began in February, after a thorough selection process of the implementation partner. The team has worked round the clock to deliver on all project requirements within the shortest time possible,'' he said.

Amadeus's executive vice president for Africa and Middle East Maher Koubaa said that the partnership will deliver a new approach to revenue management to support the complex and specific needs of this rapidly evolving airline.

''The right offer management strategy is vital to underpin an airline’s growth and optimize its revenues. We are excited to see how the technology can enable Kenya Airways to achieve its business goals,'' Koubaa said.

A week ago, Mikosz has urged the government to take quick action on nationalising the airline.

Lawmakers voted in July to re-nationalise the loss-making airline, which is 48.9 percent state-owned, 7.8 percent held by Air France-KLM, and 38 percent owned by local lenders, hoping to emulate the success of the state-owned Ethiopian Airlines.

On the other hand, countries like Tanzania and Rwanda are investing heavily in their national carriers, threatening Kenya Airways’ market share.