● Malaysia Airlines’ innovation-led strategy contributed to +23% direct operating margins for domestic operations in early 2021
● Malaysia Airlines partners with Amadeus for its Revenue Management Control system
Since 2020, Malaysia Airlines (MAS) has collaborated with Amadeus, the world’s leading travel technology company to increase MAS’ technology and retailing capabilities in order to enhance its customer’s experience and capitalize on revenue opportunities. In early 2021, MAS recorded a positive +23% in direct operating margins despite the year that was brought on by the on-going pandemic.
Dersenish Aresandiran, Global Head Revenue Management of Malaysia Airlines, says, “2020 was a challenging year, but we achieved an increase of 14% in yield in these unprecedented times with predominantly domestic operations. We focused on an effective revenue and sales initiative that helped us drive stronger direct operating cost (DOC) margins on the domestic operations resulting in a 23% DOC Margin, which is an improvement over our 2019 strong performance indicating capacity deployment are being utilised effectively with revenue and cost initiatives. This indicates the revenue management transformation we have been working on with Amadeus is performing well’’.
MAS partners with Amadeus to deploy effective Revenue Management controls which leads to a significant improvement to its profit margins. The partnership involves deployment of Amadeus’ Advanced Availability Solutions and Altéa Revenue Availability with Active Valuation (RAAV) for more targeted, tailored offerings on flights, ancillary services, and other merchandise being offered across different channels and travel sellers.
Meanwhile, the Airline Cloud Availability increases accuracy and consistency on flight searches, pricing and ticketing, managing reservations from check-in to departure, all while reducing response time for the airline. This, in turn, creates an improved booking experience for customers as they are able to pick the right seat availability for the right price across different touchpoints. The solution supported the airline in generating record-breaking revenue per available seat-kilometers (RASK) passenger revenue in 2019. It is the highest RASK ever recorded since the inception of Malaysia Airlines.
Suraj Mohamed, Director, Amadeus Business Consulting, Asia Pacific, says, “It’s critical for the travel industry to adapt and prepare for any business scenarios. We see that travelers’ needs are changing – how they choose, and purchase products and services, and how companies interact with them have changed over the course of the pandemic as a result. We are really pleased to be helping Malaysia Airlines in its revenue and business transformation journey, and together with the airline, working towards rebuilding travel in Asia Pacific.”
Malaysia Airlines has placed heightened focus on passenger experience, which was a key point of its turnaround plan in 2018. The airline partners with Amadeus on a host of technological solutions, which have helped adapt to its changing customer demands and capture more revenue opportunities.
To find out more about Amadeus’ solutions for airlines, travel sellers and corporations, refer to the link here.