Case Studies Revenue Management Broadcasting Revenue Management

Project Objective

Develop a revenue management suite for broadcasters to help them improve revenue through (i) forecasting demand, (ii) demand-sensitive pricing, and (iii) optimal allocation of advertising inventory.

A leading broadcaster in India having over 30 channels being aired the world-over.

1. Understand the existing business processes.
2. Study sales functions to understand the processes for:
i. signing contracts
ii. ad request and allocation
iii.contract servicing and monitoring
iv. price setting and commercial air-time demand assessment
3. Study programming functions to understand promo planning processes.
4. Understand how viewership ratings are used by sales and research teams
5. Study IT support functions to:
i. integrate the system with existing transaction system
ii. provide user training and support
6. Identify processes having scope for revenue improvement.

A six module suite

1. RO Planner Generates optimal ad allocation plans in an automated manner
2. Forecasts occur at fixed points in the life of a flight or when triggered by unusual booking activity.
3. Fare levels are decided based on yield forecast and dispersion in yield.
4. Determine the price point and allocation in each business type (One way, return & connection).
5. Flights would classify based on demand (Distress, Normal or Peak Flight).
i. Distress would open promotional class to boost demand on the flight.
ii. Peak flight would sell more seats at higher price.
6. Recommend which booking classes should be open/close.
7. Recommend a minimum (cut-off) price below which a group should not be accepted.

To develop a revenue management suite for broadcasters to help them improve revenue
A leading broadcaster in India
Maximize revenue; automate processes, traceability and scalability
- Airline Revenue Management
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