SpiceJet Revenue Management Capacity Building

The Challenge

SpiceJet was the second low-cost carrier to start service in India and the first to operate jet aircraft.  There was no basis within the country to design and implement a trained and effective revenue management department.

Our Role

InterVISTAS developed the revenue management policies and procedures, the decision control criteria and the benchmark and performance monitoring programs for this start-up low cost carrier during the first six months of its operations.  InterVISTAS provided effective and practical decision tools to guide pricing in a tumultuous, competitive and rapidly expanding market.  InterVISTAS provided essential revenue management training to the airlines fledgling Revenue Management Team.

Results

In one of the most competitive airline pricing markets in the world in which industry wide, yields fell over 60%, SpiceJet has, from inception been the most profitable (least unprofitable) domestic carrier due in part from a revenue management focus on revenue maximization versus seat utilization.

Photo courtesy:   simpliflying.com