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As we previously announced, Kambr and AirAsia partnered to Streamline the revenue management & data science processes of the low-cost carrier. It seems the industry is taking notice!
T2RL, the research and consultancy company that helps airlines and vendors navigate complex IT procurement processes, broke down the Kambr-AirAsia partnership and spelled out what it means for the commercial aviation industry.
We'll highlight some of the key takeaways from the report here. If you'd like to access the full report, head over to our insights section and download it there.
The New Commercial Aviation Environment
T2RL believes the new commercial aviation environment brings a new opportunity for a credible new entrant that can bring novel thinking to bear on revenue management.
"Existing RM systems are focused almost entirely on fare revenue despite the fact that in the LCC world ancillaries account for a substantial proportion of airlines’ total income," states the T2RL report.
Recognizing the changing landscape, Kambr partnered with Navitaire to improve integration of real-time revenue management for low-cost carriers. The collaboration enhances the existing integration of Kambr’s Eddy revenue management (RM) system and Navitaire’s New Skies® digital reservations and retailing solution to help LCCs boost revenue, flexibility and speed to market.
"Existing RM systems are focussed almost entirely on fare revenue despite the fact that in the LCC world ancillaries account for a substantial proportion of airlines’ total income."
“We believe our partnership with Kambr brings together two strong players united in helping LCCs unlock revenue opportunities using innovative, easy-to-use solutions,” said David P. Evans, Navitaire CEO. “Our shared commitment to leveraging modern technology and simple data integration opens the door to help airlines increase their revenue optimization with greater efficiency and market agility.”
In Comes a New Era of Revenue Management
All of this has set the stage for Kambr to develop its flexible and efficient Eddy RM Software. T2RL describes the software’s connectivity.
"[Kambr] has recognized that modern RM needs to include more than just historical data and Eddy is able to incorporate shopping data and competitor fares. It also allows for flexibility in both connectivity to existing data and in workflows that make it attractive to a wider range of airlines."
Because of the capabilities of Eddy, Kambr has capitalized on its market opportunity. In addition to working with 10 airlines, including, Corendon Airlines, SKY Airline, Flyr and Ural Airlines, Kambr has also inked a deal with low-cost carrier AirAsia. T2RL references the signing as a "game changer."
"Kambr has recognized that modern RM needs to include more than just historical data and Eddy is able to incorporate shopping data and competitor fares. It also allows for flexibility in both connectivity to existing data and in workflows that make it attractive to a wider range of airlines."
Looking Ahead
One area where we see the market changing is how airlines structure their business models. According to T2RL, "early signs are that many established airlines plan to move towards a business model closer to that of the LCCs, with far more direct distribution and less emphasis on hub and spoke networks."
The agile and digitally driven approaches that give LCCs a competitive advantage are also creating new needs that are not being met by legacy software systems. Kambr aims to offer the flexibility, efficiency and control that LCCs need to effectively execute their commercial operations.
"Kambr has already moved beyond the stage of being a plucky start-up and must now be considered a serious player in the market for revenue management in LCC and Hybrid airlines."
This shift in the market bodes well for Kambr, given its segment-based approach currently embodied in Eddy, which is suited to LCCs and hybrid airlines.
As T2RL outlines, "Kambr has already moved beyond the stage of being a plucky start-up and must now be considered a serious player in the market for revenue management in LCC and Hybrid airlines."
