This is our story of leveraging a comprehensive, cloud-based solution to help a leading US airline streamline and scale fare audit while enabling significant revenue recovery.
As we know…
Airlines must contend with fluctuating revenue streams as they navigate volatile market conditions inherent to the industry. In a landscape characterized by hefty fixed costs and price-sensitive passengers, plugging revenue leakage is business-critical.
Fare audits are important to identify inaccuracies in pricing structures and commissions and mitigate revenue erosion stemming from underpricing or erroneous charges. However, the intricate nature of airline fare structures, compounded by the sheer volume of data, poses a formidable challenge for manual examination. Forward-looking enterprises harness the power of automated fare audit systems, ensuring efficiency and precision in the analysis process.
The challenge for the client was three-fold…
Fraud & Revenue Leakage
The substantial volume of ticket sales facilitated by Tier 1 carriers increased susceptibility to fraudulent activities by agents and resulted in significant revenue leakage for the airline.
Complex Fare Structure
The management and auditing of diverse and intricate fare structures presented significant challenges, especially in ensuring uniformity in fare calculations and application across multiple booking channels.
Technology Integration & Automation
Integrating audit systems with airline reservation and revenue management systems – ensuring data accuracy and reliability and addressing technical limitations – posed challenges.
Stepping in as a partner with extensive domain and technological capabilities…
WNS conducted comprehensive process discovery, analyzing the client’s ticketing and technology infrastructure. In line with the airline’s needs, we proposed integrating a proprietary, cloud-based solution for transformative outcomes while negating the need for any upfront investment.
Subsequently, WNS implemented VERIFARE PLUS, a fully automated, holistic, web-based solution offering comprehensive fare audit services across the ticket lifecycle for all types of fares.
Critical aspects of the solution entailed:
The comprehensive and automated ticket audit…
Enabled the client to meticulously identify errors in sales, exchanges, refunds, commissions and taxes. This approach helped promptly raise debit memos to initiate recoveries and efficiently manage travel agency disputes.
Moreover, the client gained invaluable insights, including online access to information related to ADMs raised. They could also identify top offending agents, violations and markets through published reports and monthly connect sessions. This information was then used to educate the agents to reduce errors, thereby preventing revenue leakages.
Key benefits delivered include:
30 million
tickets audited annually
~USD 12 Million
in annual revenue recovery
Reduced
processing costs
Customized
reporting
Improved business intelligence
Enhanced Sarbanes-Oxley (SOX) compliance and
financial controls
