seugi 18 in dublin, june 20 - 23 2000 dipl.-math. gunda ... · airbus a320 33 39 airbus a321 18 20...

MarketExplorer- a decision support system for

revenue management

SEUGI 18 in Dublin, June 20 - 23 2000Dipl.-Math. Gunda Göllmann

Proven solutions for open skies

MarketExplorerSEUGI 18, Dublin June 18 - 23 2000

! Common strategy ofmarket penetration

! Growth potential byexploiting synergiesand entering newbusiness areas

! Added value for allcustomers

Lufthansa IT Services

Lufthansa Systems is the largest member inthe newly established alliance „Lufthansa ITServices“

TTI Consult

Cargo FutureCommunications

LufthansaConsulting

START Amadeus

START Media Plus

START Ticket

SH&E

Lido

Lufthansa AirPlus

LufthansaRevenue Services

Lufthansa ProcessManagement

RDM

LufthansaSystems

LufthansaSystems Berlin

LufthansaSystems Network

LufthansaSystems AS

LufthansaSystems Hungaria

DERDATA


Seven subsidiaries enhance LufthansaSystems‘ comprehensive portfolio

The Lufthansa Systems Group The Lufthansa Systems Group

100% 59,9%100%100% 75%

Desktop &NetworkServices

SystemsEngineering

Data & SystemsManagement

Lufthansa Systems Berlin

65%

ACCON

POB DesktopServices

POBBusinessConsulting

LufthansaSystemsNetwork Services

POB NetworkEngineering

Core BusinessAreas

! 1900 employees! 815 Million DM turnover

Lufthansa Systems Hungaria

Lufthansa Systems AS

TTI Consult CargoFutureCommunications

DERDATA Lufthansa Systems Network

100%


al SystemsBudapest

al SystemsNew York

al SystemsFrankfurt (Kelsterbach)

al SystemsSingapore

al SystemsRio de Janeiro

al SystemsBeijing

al SystemsMunich

al SystemsCologne

al SystemsHamburg

al SystemsBerlin

Further offices throughout Germany:

Global presence and expansion support ourcompetitive strength

al SystemsSydney


Lufthansa German Airlines

Founded as !"#$%&'"()#*$(+,-%,(./1926

1952

1955

1999

Dissolution of !"#$%&'"()#*$(+,-%,(./

New Foundation of!"#$%&'"()#*$',-%,(./

!"#$%&'"()#*$',-%,(./

... ...

Passengers: 74.000

Passengers: 44 Mio


Lufthansa German Airlines Network

)#*$',-%,(/"01,-(.2032-"%

4#056"789

/"01,-:(8;<50$'(.1"02&,

=>

?"-$0,3(@(A5#$'(.1"02&,(B

C2DD3"(4,%$7E

.%2,FG,&2*2&

.*02&,(7H

E9

291 destinationsin 90 countries

Network Planning


Lufthansa German Airlines Passengers

! 44 mio. passengers

! 655.000 flights

! 116 billions Seat Kilometers Offered (SKO)

! 85 billions Passenger Kilometers Transported (PKT)

! Seat load factor of 73 %

Per annum:

All these figures are upward tendency!

Pricing / Schedule Adjustment


Lufthansa German Airlines Fleet1 9 9 8 2 0 0 2

Air bu s A3 0 0 1 3 1 3Air bu s A3 1 0 9 9Air bu s A3 1 9 1 7 2 0Air bu s A3 2 0 3 3 3 9Air bu s A3 2 1 1 8 2 0Air bu s A3 4 0 1 6 1 9B o ein g 7 3 7 9 0 9 0B o ein g 7 4 7 4 1 4 9B o ein g 7 5 7 1 8 3 0B o ein g 7 6 7 9 9D o u g las D C 1 0 - 3 0 3 3C an adair C L -6 0 0 3 0 3 1AV R O R J 8 5 8 8F o kker 5 0 1 1 1 1

T o tal 3 1 6 3 5 1 Fleet Planning


The variables

Network Planning

Pricing / Schedule Adjustment

Fleet Planning

New origins, new destinations, new stops, cancellations

Optimization of distribution of total seats, equipment changes

Change the product on offer by fares and prices, schedule optimization

The decision basis: market and competitor informationand internal data


OAG = Official Aviation Guide of the Airways! World’s leading independent provider of travel information! makes data available about schedule planning systems (including

schedules of all airlines)

MIDT = Marketing Information Data Transfer! makes information available about airlines’ booking data (volumes and

shares) that are made by agents! booking data from the 7 CRSs (Computer Reservation System, Amadeus,

Galileo, Sabre, Apollo, Worldspan, System One, Abacus)! Using of MIDT creates competitive advantage

Competitor data: MIDT & OAG (Reed TravelGroup )

most suitable for sales force and network planning


What were the problems in receiving marketand competitor information ?

! The access of the originalsystems followed fromdifferent lay-outs of userinterfaces and transactions

! Special knowledge wasnecessary for each system

! It took a lot of time to getthe necessary information

! Different interpretation ofdata

Revenuemanagement

Schedule

Sales

BookingsBIS Forecast

EMP

Loadfactor

TimetablesOAG-Data

Budget

AccountingData

Booking SharesMIDT

Fare Data

Controlling

Including

competitor data!!

Including

competitor data!!


Turning data into information for airlinesnetwork steering with MarketExplorer

Combination ofManaging pricesand capacities bysystematic analysisof booking demandto identifymarketingopportunities andadditional salespotential

Their task

Data of varioussytems about loadfactors, forecasts,fares, schedulesand the activities ofthe competitors(MIDT & OAG)

Decision basis

consolidationandimprovement ofoverall resultsin an airlineroute network

Their aim

Their Tool

MarketExplorer

Pricing and Yield Management / Sales


Sources Data Processing Data Warehouse User Tools

Import Processing

Market Data

Management Data

! Marketing Information Data Tape MIDT! Rates! Timetables

! Control Data! Budget Data! Ticket Data! Costs

QueryHandling

Alerting andSuccess Control

Risk Evaluation

OLAPAnalyse

MarketExplorer Client

PromotionPlanning

Market andCompetitorInformation

Monitoring Function

Data Access

Market- and Competitors Information System


The Data Warehouse solution for gettingmarket intelligence

Promotion RiskEvaluation

Evaluates the risk of plannedactions and monitors the success

of realized promotions Market Analysisallows all facets of market analysis

Market MonitoringGuarantees permanently observation of allrelevant data to inform you automaticallyabout alarming trends and competitordevelopments


Market Monitoring

! Personal definition of market responsibilities for the alarmfunction

! The responsible marketing person will beinformed per alarm signal, when fixedthreshold values are exceeded

! All connected databases are examined for significant changes in values atregular intervals

! Further problem analysis is suggested byMarketExplorer (checking list) and can becarried out promptly


Market Analysis! Simple query of information from

different databases in Windows(intuitive handling)

! Preparation of results in different levels ofdetails for different target groups (DrillDown/Up)


Promotion Risk Evaluation

Promotion RiskEvaluation

NewActivity

MarketAnalyse

Monitoring

ActionVariante 3

Action Variant 3

Action Variant 1

Action Variant 2Conclusion

! Risk analysis of plannedsales promotions

! Success monitoring ofrealized promotions


Implementation at LufthansaNot a "big bang" solution, realization step by step!

Business analyse

Prototyping

First release with 3 source systems

Next 4 systems

Creating information database

Alarm function

Additional data source and functions

Monitoring of market campaigns

APR 96 JUN JUL SEP NOV MAR 97 APR 99


SAS Institute Components

! SAS Orlando (Version6.12):SAS/BASE , SAS/AF ,SAS/EIS ,SAS/CONNECT ,SAS/ACCESS

! TCP/IP

! Windows NT oderWindows 95

! SAS 6.12:SAS/BASE ,SAS/CONNECT ,SAS/ACCESS

! Oracle Version 7.3

! HP UX 10.0

PC-Client UNIX-Server


Handling with Customizing

! Analysis of the current situation(approx. 2-4 weeks)

! Expense estimating

! First Release(approx. 2 months for the three most important systems)

! Gradual expansion


What are the plans for the future forMarketExplorer?

! Worldwide Connection

! Connection to the Internet

! Gradual expansion of additional information

! Presentation of information for the processes! net planning! sales and distribution

! Simulation models


Key Benefits - MarketExplorer

! automatic information of changes in market andcompetition

! prompt market view

! quick implementation

! easy query of information from several databases

! preparing of results in different levels of detail (wordwide200 users with different demand of information)

! fast Return on Investment (< half a year!!)


Contact

Dipl.-Math. Gunda GöllmannMultimedia Marketing & SalesAm Weiher 24D-65451 Kelsterbach

E-Mail: [email protected]

seugi 18 in dublin, june 20 - 23 2000 dipl.-math. gunda ... · airbus a320 33 39 airbus a321 18 20...

Documents