As a Revenue Management (RM) Analyst in the transportation industry, you are no stranger to the challenges posed by spilled services. You may have encountered situations where your seats were reserved too early by passengers for a cheaper price, leading to regret in the event of a sudden spike in demand.
A “spill” typically transpires after an unanticipated surge in demand, prompting you to reconsider earlier low-value bookings on specific journeys. A standard optimal pricing strategy aims to sell budget-friendly tickets earlier, preserving enough capacity for high-value tickets in the days leading up to departure. However, when demand rises unexpectedly, the remaining capacity may be insufficient to accommodate all high-value bookings from customers willing to pay a higher price for the same services. This untapped revenue could be significant for your revenue growth.
What if we told you that you could transform this into a potential revenue machine for your organization?
Let us dive deep into CAYZN Recovery Engine and discover how it can effectively address and resolve this issue for you
Recover Your Spill Using CAYZN Recovery Engine
The CAYZN Recovery Engine is a cutting-edge tool designed to help transportation providers optimize their bookings by proactively identifying and addressing spilled services. The tool works by analyzing booking data and predicting in advance when your service may be spilled (D-3 before departure or earlier) and offers actionable insights and suggestions for analysts to make data-driven decisions.
CAYZN Recovery Engine has one primary goal: to free up capacity in a cabin to reduce spill and generate more high-fare sales. By recovering seats on journeys that fill up too quickly, it unlocks additional revenue from existing capacity and optimizes revenue automatically.
This tool empowers you to proactively forecast fully booked days, evaluate potential losses early, and adjust pricing based on market demand. It also enhances customer satisfaction and recovers lost revenue by offering alternative services.
The CAYZN Recovery Engine features three complementary mechanisms that enable you to recover oversold capacity by encouraging customers to rebook their tickets:
Provide passengers with an upgrade to a more premium cabin at a complimentary or discounted rate. This strategy can generate direct additional revenue or be used as a way to reward customer loyalty with a free upgrade. Ensure you target the right passengers to push for a premium cabin experience, giving them a reason to use these services in the future.
Incentivize passengers by offering them a voucher or an offer to swap their tickets for the same origin and destination (O&D) on another flight/train/bus with available capacity (on the same day or one day before/after). Present them with 2-3 options, and explore trains with similar O&D on different itineraries. This approach is most effective for transportation options outside of peak periods. This is a significant advantage for both passengers and transportation providers as the passengers can get a swap for free/accompanied by a voucher, and providers can free up a high-value booking on your journey.
Instead of suffering from no-shows that leave seats unsold, you can waive cancellation fees for selected passengers, incentivizing them to cancel their booking (for example: in a situation of them changing their minds) on a high-demand transportation service, be it a flight, train, or a bus. However, you need to keep in mind to choose the right passengers to refund and be aware of the refund method you are offering to them. Are you offering a 100% refund or less? Would you compensate them in cash or with a voucher? A voucher is always beneficial as it gives passengers an incentive to use your services in the future.
Here is an example of how you can increase revenue using the CAYZN Recovery Engine:
Integration with the Existing CAYZN Ecosystem
The CAYZN Recovery Engine serves as an optimal solution for analyzing, recommending, and implementing post-booking optimization opportunities. Designed to integrate seamlessly with the existing CAYZN ecosystem, it ensures a smooth and efficient workflow for transportation providers. Users can access the comprehensive suite of CAYZN tools, including advanced analytics and customer communication features while benefiting from the additional insights provided by the Recovery Engine.
The post-booking optimization process benefits from CAYZN’s real-time forecasting, enabling analysts to:
- Recommend appropriate actions at the train-O&D level in terms of volume, incentives, upgrade prices, and more.
- Provide a preliminary estimate of the recoverable spill to determine beforehand if an action is going to be worthwhile.
- Automatically stop actions once the spill has been sufficiently reduced.
As you gain insights into the factors contributing to successful post-booking optimization, your expertise can be harnessed to automate spill recovery actions on the post-booking optimization mechanisms using CAYZN’s Business Rules Engine.
CAYZN Recovery Engine in Action
To demonstrate the effectiveness of the CAYZN Recovery Engine, let’s examine an example scenario involving a spilled train for a specific journey. The engine detects overbooking and recommends optimizing the situation by rebooking reservations.
If you have enabled forecasting in your existing CAYZN systems, you will see a spill possibility indicator in your dashboard, which will be displayed in either orange or red. The color depends on the severity of the spill and the potential amount of revenue at risk.
You can click on the “spill” icon to access an in-depth analysis of the spill, featuring a real-time overview of the cabin number, final Load Factor forecast, days of lost sales, last average price, total traffic lost, and ultimately, cost of the overall revenue spill.
Upon identifying a spill you wish to recover, you will gain access to a Recovery Strategy outlining all options and offering Refund, Swap, or Upgrade activations for selected O&D journeys.
After analyzing and making a decision, you can apply the chosen changes, and an email distribution can be activated to be sent to all affected passengers. You can monitor the recovery progress for each journey on the same dashboard, observing in real-time the number of accepted tickets and the revenue recovered from the spill.
Wrapping everything up, you will receive a weekly spill recovery report, providing an overview of the successful rebookings and the revenue recovered through your spill recovery actions during the previous week.
CAYZN Recovery Engine combines all the post-optimization solutions on the market on a single dashboard, giving users a seamless, automated way to recover potential revenue.
Interested in seeing our product in action? Book a demo with our experts by emailing us at email@example.com. We’ll guide you through the tool and provide you with a firsthand experience of how you can use the CAYZN Recovery Engine for your organization.