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svneetu
Topic Author
Posts: 1
Joined: Mon Oct 24, 2016 4:36 pm

Revenue Management System

Mon Oct 24, 2016 4:41 pm

Hello Folks,

I am new to Airlines Industry and working in RMS, is there any good study material available online to understand the concept ?

Thanks,
Sush
 
a380787
Posts: 4573
Joined: Tue Jul 09, 2013 4:38 pm

Re: Revenue Management System

Mon Oct 24, 2016 4:52 pm

Online materials on this subject would usually be very generic and high level concepts, since the intricacies of individual airline's RMS algorithms are closely guarded. Whoever you work for should provide far more useful training material.
 
jbflyguy84
Posts: 124
Joined: Sat Mar 28, 2015 3:30 pm

Re: Revenue Management System

Mon Oct 24, 2016 6:04 pm

What kind of information are you looking for? User manuals or such? Or like 'how they work' manuals?

In RM myself, PM me if you have specific questions you need help with. I've used AirRM, Pros and SkyPrice

Cheers
 
rojo
Posts: 2311
Joined: Tue Sep 05, 2000 6:08 am

Re: Revenue Management System

Mon Oct 24, 2016 6:29 pm

There is a lot of information available on the algorithms behind airline RM systems. Goolge will give you a lot of material, just don't use the regular google, use scholar google and you will have access to some articles published in major journals.

Some people think that the algorithms used by airlines to do RM are top secret, but they are not, since most airlines use RM systems developed by thrid parties (like Sabre, Pros, JDA, etc)
 
a380787
Posts: 4573
Joined: Tue Jul 09, 2013 4:38 pm

Re: Revenue Management System

Mon Oct 24, 2016 6:42 pm

rojo wrote:
Some people think that the algorithms used by airlines to do RM are top secret, but they are not, since most airlines use RM systems developed by thrid parties (like Sabre, Pros, JDA, etc)


You've mixing RM platforms (i.e. Sabre) with RM algorithms. One can probably survive using the basic template of formulas that came with Sabre, that won't gain any competitive edge for that airline if they don't incorporate proprietary ones.
 
rojo
Posts: 2311
Joined: Tue Sep 05, 2000 6:08 am

Re: Revenue Management System

Mon Oct 24, 2016 7:18 pm

a380787 wrote:
rojo wrote:
You've mixing RM platforms (i.e. Sabre) with RM algorithms. One can probably survive using the basic template of formulas that came with Sabre, that won't gain any competitive edge for that airline if they don't incorporate proprietary ones.


The OP just want to understand the basics, he is not trying to decipher the entire code. My background is operational research and I can tell you that the algorithms are standard (math and statistics), each airline just tweaks them based on network requirements. It is all about forecasting and optimizing, and you can find tons of literature about those two. Forecasting is the process of quantitatively estimating the expected demand relying on past bookings. The forecast is then fed to the optimizer which sets the booking limits that maximize the revenue contribution of every booking with the airline. Some airlines do flight leg and others do OD Path. Don't over complicate things to the OP.
 
a380787
Posts: 4573
Joined: Tue Jul 09, 2013 4:38 pm

Re: Revenue Management System

Mon Oct 24, 2016 7:25 pm

rojo wrote:
a380787 wrote:
rojo wrote:
You've mixing RM platforms (i.e. Sabre) with RM algorithms. One can probably survive using the basic template of formulas that came with Sabre, that won't gain any competitive edge for that airline if they don't incorporate proprietary ones.


The OP just want to understand the basics, he is not trying to decipher the entire code. My background is operational research and I can tell you that the algorithms are standard (math and statistics), each airline just tweaks them based on network requirements. It is all about forecasting and optimizing, and you can find tons of literature about those two. Forecasting is the process of quantitatively estimating the expected demand relying on past bookings. The forecast is then fed to the optimizer which sets the booking limits that maximize the revenue contribution of every booking with the airline. Some airlines do flight leg and others do OD Path. Don't over complicate things to the OP.


That's fine too. FYI I doubled major in ORIE as well.
 
User avatar
usxguy
Posts: 1884
Joined: Wed Jan 25, 2006 1:28 pm

Re: Revenue Management System

Mon Oct 24, 2016 8:53 pm

IATA has an online course - it is like $400 USD.

But we also use AirRM at my carrier. <3 the system.
xx
 
User avatar
usxguy
Posts: 1884
Joined: Wed Jan 25, 2006 1:28 pm

Re: Revenue Management System

Mon Oct 24, 2016 9:07 pm

xx
 
flyingcat
Posts: 529
Joined: Tue May 29, 2007 10:33 am

Re: Revenue Management System

Mon Oct 24, 2016 9:24 pm

https://www.youtube.com/channel/UCdYU-R ... GGA1EXWQzw

RIck Zeni trained me and he has uploaded some videos explaining the concepts. It will be important to identify if you will be working in an O&D or leg seg based RM system.
 
skyone
Posts: 269
Joined: Sun Feb 25, 2001 6:38 am

Re: Revenue Management System

Tue Oct 25, 2016 2:09 am

a380787 wrote:

That's fine too. FYI I doubled major in ORIE as well.


So it is, like in the middle east, a competition of who has the biggest %$#$% fleet, LOL.

Or is it that a double major trumps a single major? :roll:
 
RollerRB211
Posts: 41
Joined: Fri Aug 12, 2016 10:39 pm

Re: Revenue Management System

Tue Oct 25, 2016 6:06 am

flyingcat wrote:
https://www.youtube.com/channel/UCdYU-RVSj2_b-GGA1EXWQzw

RIck Zeni trained me and he has uploaded some videos explaining the concepts. It will be important to identify if you will be working in an O&D or leg seg based RM system.


Rick Zeni is a tremendous person and one of the most knowledgeable RM executives out there. I really enjoyed the years I worked for him.

OP- reach out to Scott Schade, the original owner of RMS. He was always really helpful to me.

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