UK rail and bus operatorNational
Expresshas boosted sales on its new East
Coast franchise by 2.5% after upgrading
itsrevenue management system
Suzanne Donnelly, head of revenue at National Express, said the
revenue increases were down mainly to automation, which allows her
team to make thousands of pricing decisions a day. "Without a
revenue management system, we may end up selling far too many
low-price £10 fares," she said.
Speaking at retail software house
JDA's annual rail revenue
management conference last week, Donnelly said that National
Express needed to address the problem of overcrowing on peak-time
services. "We have to encourage people to avoid peak-time travel,
and stimulate demand during off-peak times with low fares and
promotions."
The system, which was supplied by JDA, works by analysing
historical data and forecasting demand so that the company can set
prices more accurately based on availability. National Express
plans to enhance the package to enable it to sell tickets matched
to competitors' fares, including travel by plane, car, coach and
rail. "We will be able to go from 'What-happened forecasting' to
'What-if forecasting' because the information is more accurate and
more relevant," she said.
Donnelly said information from the revenue management system
would also enable the company to simplify its terms and conditions.
"We are moving to a situation where we will have a single standard
terms and conditions but multiple price points," she said.
Donnelly said National Express, which worldwide carries more
than one billion passengers a year, may also use the system to cut
costs in crewing and catering by knowing how busy a service will be
and so how many staff or snacks will be required.