Mercator Blog

Topic: Revenue Accounting

Why Branded Fares Aren't Just About Upsell

Airlines that offer branded fares love to talk about upsell. “30% of passengers choose to purchase one of the upsell bundles!” (Hurrah) They conclude by “Branded fares are working”. This, however, is not the best way to look at branded fares, and is typically not the main reason airlines are increasingly offering such re-bundling of ancillary services.

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2017 Airline CFO Outlook: Embracing Change

Airlines – similar to many other industries – like to view themselves as unique; uniquely difficult, uniquely complicated, subject to unique regulatory, competitive, or market forces. They are therefore cautious in adopting practices from other industries. As CFOs take on new change management

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Topics: Aviation, Revenue Accounting

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How Data Fragmentation Puts Airline Revenue at Risk

Much is written about siloed departments at airlines. At the largest airlines, each major function could have hundreds of employees housed on different floors – or in different countries, with different sub-cultures, and very various focuses. Sales and operations in particular, have disperse workforces spread across the global network.

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The Value Shift: Why Airline CFOs Should Lead Change in the Digital Age

    A key metric for CFOs is, of course, “enterprise value” - the total market value of the firm. CFOs seek to increase the value of their airlines through profit growth and prudent risk management, but the most highly valued travel-related companies in the world are no longer airlines or hotels.

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Topics: Aviation, Revenue Accounting

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How Personalized Offers Benefit Both Customers and Airlines

Offer management entails a personalized approach to customer engagement. Increasingly, travelers – like customers across industries – expect more customized merchandising. Most generic offers don’t meet their needs, hence leading to conversion rates of 2-3% or lower.

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IATA WFS 2016: Five Takeaways for Airline Finance Executives

Last week, airline finance executives gathered from around the world at the IATA World Financial Symposium in Singapore to hear industry experts and peers share knowledge and best practices to support sustained airline financial health. Key themes included airline retailing, enterprise and financial risk management, FinTech, and simplicity as the key to cost efficiency. Here are our top takeaways:

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