Improving yield management at a travel & leisure operator

The issue

  • A leading leisure travel group needed to make a change in Yield Management practice to optimise commercial outcomes
  • Profitability under strain due to increased competition and uncertain market conditions
  • A complex and out of date system eroded trust in Yield Management practice
  • Limited understanding of commercial impact of pricing decisions and a lack of operational control
  • No alignment behind informed vision to guide the development, deployment and industrialization
  • Capability gaps
  • Siloed understanding of the potential impact of digital technologies

What we did

  • Market analysis
  • Developed strategy & analytical model to explore critical aspects of Yield Management Operating Model
  • Developed blueprint roadmap to deliver vision & clear programme structure
  • Business transformation
  • Executive coaching
  • People & culture change
  • Flexible approach enabled client to retain ownership

The results

  • Estimates over next four years indicate cumulative improvements in gross margin, uplift in aircraft utilisation & increase in spend per customer
  • Improved cross-functional collaboration
  • Uplift in gross margins for last season
  • Commercial mindset taking hold in organisation

20M

exceeded the gross profit margin improvement target

25%

reduced customer loss

14%

reduction in operating costs

An award-winning team

Curzon consulting mca finalist 2019

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