RJ adopts new Group Revenue Management system

This Internet-based system performs real-time group-booking acceptance, group management, decision making and pricing.

This new system, introduced to the airline by the Revenue Management Section at the Network Management and Alliances Department, provides on-line evaluation of group booking requests to achieve maximum incremental revenues from available seat inventories on itineraries and flight dates/times requested by group customers.

Interfacing with the Royal Jordanian's reservation system, the group system automatically determines itineraries that meet the group criteria, and offers a price based on the displacement cost which depends on the forecasted values of future individual passengers who might be displaced when an airline accepts a group request.

Once the group is accepted, the system automatically tracks actual group performance and after departure, the group's performance data is captured in the system's historical database for use in evaluating future group booking requests.

The new group system works with the Internet web-based mask which allows RJ sales offices to enter and manage group requests easily. The new group business process has become a seamless integrated process from the beginning, and uses a much more improved handling and scientific revenue optimization and pricing evaluation process.

The e-mail, phone call and fax alternatives present limitations and are inefficient. The new RJ group system filters and sorts requests to prioritize and manage customers' transactions, and sends automatic notifications of reservation statuses directly to the RJ sales office.

Thus, it facilitates the best practices in revenue optimization science, price negotiation, flights and number of passengers, resulting in improved revenues and capacity optimization. The system distributes passengers on multiple flight options, reducing cost and increasing profitability.

Accordingly, communication between sales offices and revenue management is enhanced and closely integrated, as new opportunities arise with expanded sales channels (B2B), capitalizing on expanded revenue opportunity.

RJ will greatly improve customer satisfaction, while at the same time increasing revenues, which is the main reason for the adoption of the system.