The revenue management needs of a start-up low cost carrier are dramatically different from those of a traditional airline. Traditional revenue management focuses on managing overbooking, no shows and go shows that are a by-product of traditional channels which permit booking without paying. Legacy GDSs force carriers to use these channels. The Radixx Air revenue management model is specifically designed for low cost and start-up carriers. Radixx provides an innovative graphical rendering of the booking trends by flight thereby enabling rapid analysis and time-critical adjustment of inventory levels on flights that need inventory adjustment to maximize revenues. This approach was taken after studying multiple successful low cost carriers and combining their fares and inventory management into an easy to use interface. The Radixx approach has a substantial advantage for start-up carriers, because start-ups do not have the history necessary to populate a traditional revenue management system.
The Radixx inventory module provides for serial nesting with multiple cabins and blocks. Inventory buckets are automatically opened and closed based on preset AU levels and easily created and managed via templates. Nesting permits airlines to increase their average fares and total revenues. Radixx displays the available inventory of the currently nested lowest fare and highlights it for sale, so that the agent or the consumer is always encouraged to purchase the fare of the airline’s choice.
