Q: Challenges faced by airline industry?
Ans: Airlines today are facing a number of challenges. I think the foremost is, the perfect storm in terms of higher costs, lower revenues, increased competition and they are now in a position where they need to make very definitive decisions over strategic direction moving forward. They need to manage their investments more effectively, they need to manage their business far more efficiently and they are having to do that in a time of great pressure globally.
Q: Importance of revenue recovery ?
Ans: I think revenue recovery in today’s economic environment is absolutely paramount. Revenue leakage as we refer to it, can happen in a number of stages through the process of a passenger booking to actually traveling. We see it somewhat akin to earning a salary at the end of the month and then putting it in a pocket with a hole in it. It is vital that you stem that hole or you plug that hole. At WNS we offer that service for free. If we don’t find any revenue leakage, you don’t pay WNS anything. That’s how confident we are that we can bring benefits to the airlines today.
That’s both important in terms of stemming those losses immediately, but also in terms of making sure that your yield management and your load control and your revenue management is all absolutely aligned and working as it should be.
Revenue recovery in days of airline survival like they are now reminds me of sort of two explorers in a jungle when they spot a lion. The lion happens to be hungry, sees them and recognizes them as lunch. One of the explorer bends down, puts on a pair of running shoes and start to tie them up. The other explorer looks to him and says I am not sure why you are putting on running shoes, you never going to outrun the lion. To which, he explains I don’t have to outrun the lion; I just have to outrun you. In these days of survival, as I have said, I see revenue recovery in WNS Solution as being a pair of running shoes for the airline that selects it.
Q: Strategies to plug revenue leakage?
Ans: Airlines should immediately introduce a worldwide audit of all the fares that are issued and all the tickets that are issued. Some airlines already have these systems in-house but, WNS could offer a second pass audit, which serves to reinforce the work done by the internal department. And also ensures that there is no additional revenue leakage outside of that that’s already been identified. Again WNS offers this on a contingency basis only, no expense required if no revenue is found, so a complete win-win once more for the airline moving forward.
Q: WNS - A preferred partner?
Ans: In terms of airlines using WNS, I can’t think of a better outsourcing partner in the world. We were born from the airline industry; we came out as a subsidiary of British Airways. Since that time we have worked with some of the biggest and the best carriers in the world. We have proven and demonstrable experience in terms of revenue recovery, revenue accounting, sales, customer service, customer relations, frequent flyer programs.
I can’t think of a part of the airline industry that we haven’t touched, worked with and continue to benefit client airlines. Most of our relationships have been long term, renewed and become deeper and deeper in terms of long term strategic relationships rather than simple supplier relationships. I am proud of what WNS has done and the team that we have here and the way we work with our customers day in and day out, both through thick and thin.