Xiamen Airlines using sophisticated software from SITA to set fares competitively in markets

It then immediately ensures appropriate prices are in place to support the airline’s overall revenue management and sales strategy.

Xiamen Airlines, which is experiencing major growth across its domestic and international network, is using sophisticated software from SITA to set its fares competitively in all markets. The airline, which handled 32.7 million passengers in 2017, is highly profitable. It has achieved profits 31 years in a row and is now using SITA Airfare Insight to optimize its fares-related decision making.

More than 180 million fares are published worldwide at any one time, and typically full-service airlines will update fares throughout their distribution network of GDSs, travel agencies and websites, several times a day.  By using SITA’s Airfare Insight Xiamen Airlines can stay ahead of the competition. It can set its fares based on a clear view of what its competitors are doing in markets across the world. Airfare Insight automatically identifies the relevant fare changes in the marketplace. It then immediately ensures appropriate prices are in place to support the airline’s overall commercial strategy.

Chen Rong, Committee Secretary, Passenger Marketing & Sales, Xiamen Airlines, said: “Filing fares at the right price and at the right time can have a significant impact on profit margins. SITA’s technology enables our commercial team at Xiamen Airlines to have the right fares distributed to the right customers. It also gives us the capability to analyze all our fares and manage them across multiple locations and time zones, which is vital as we expand our route network.”

Today, Xiamen Airlines serves nearly 400 domestic and international routes covering China, Southeast and Northeast Asia, Europe, North America and Oceania. With 1,074 destinations in 177 countries making sure the right fares are published in the right markets is challenging. SITA Airfare Insight automatically identifies the relevant fare changes in the marketplace. It then immediately ensures appropriate prices are in place to support the airline’s overall revenue management and sales strategy.

May Zhou, SITA Vice President & General Manager, East Asia, said: “Xiamen Airlines is one of China’s great successes with decades of profitability. Industry studies indicate that correct pricing can contribute 3-10% to overall revenues and SITA’s technology allows the airline to distribute all fares to customers at the ideal price point with head-office knowledge and approval. Airfare Insight also simplifies the end-to-end fares management process while putting competitive fares in key markets. A winning formula for this growing airline.”