Published on : Wednesday, May 11, 2016
In order to maximise profitability, airlines must sell the right seat to the right customer at the right price. The big question is – what is the right seat and the right price for each individual traveller? Wouldn’t it help airlines if travellers could name that price themselves?
With Plusgrade, travellers can do just that. Plusgrade provides technology to airlines so that passengers can bid to move to a better class or have that much-prized free seat next to them on a busy flight. After buying their ticket, passengers place their bids for these services online. They find out if their offer is accepted between 24-72 hours before the flight takes off, adding a fun element of surprise to the trip.
The benefits are big for both passengers and airlines. Passengers are empowered by being able to make an offer for a premium service at a price they are comfortable with – depending on availability. In turn, airlines can capitalise on empty seats and increased upgrades, generating significant revenue whilst also benefitting from the improved customer experience delivered to their travellers.
“Plusgrade’s mission is to help airlines generate as much revenue as possible from every flight,” says Ken Harris, Plusgrade’s Chief Executive Officer. “Our partnership with Amadeus further strengthens Plusgrade’s ability to innovate, lead and build upon the meaningful revenue streams and enhanced customer experiences for which our signature up-sell solutions are known. Together with Amadeus, we will deliver powerful end-to-end ancillary revenue solutions and experiences for our common customer base in a rapid timeframe.”
“Enhancing merchandising capabilities for our airline customers is a priority for us at Amadeus,” says Julia Sattell, Senior Vice President, Airline IT, Amadeus IT Group. “We have been focusing on developing partnerships in order to deliver innovative solutions fast. Through this partnership, Altéa customers will be able to implement this solution much quicker than before. Airlines will be able to boost that all-important bottom line, whilst travellers will gain greatly from the increased choice and flexibility when deciding how they want their flight experience to be.”
Qantas Airways, an Altéa customer and a partner of Plusgrade, comments on the benefits of the solution: “Our partnership with Plusgrade has over-delivered on customer engagement and continues to deliver meaningful ancillary revenue,” says Nick Evans, Manager Ancillary Revenue at Qantas Airways.
In an industry with an average net profit margin of only 4.6% in 2015, airlines need to manage their fixed resources as best as possible in order to stay ahead of the pack. Plusgrade meets this need, and enables airlines to take advantage of everyone’s impulse for luxury: sometimes travellers just want to treat themselves.