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QSI fair share analytics

Commercial strategy

Anticipate airline needs with QSI-based analytics

March 29, 2019

Spring is in the air — and so are air contract negotiations. Across the country, Travel Management Companies (TMCs) are […]

Spring is in the air — and so are air contract negotiations. Across the country, Travel Management Companies (TMCs) are busy negotiating contracts on behalf of a corporate customer or supporting negotiations with relevant data. Why? To be more prepared for the negotiation table.

In a survey conducted by BTN back in October 2016, more than 80% of Travel Managers expressed that they rely on both their TMC and the airlines for data that they can use during this period.

Are you prepared?

Making informed decisions for your travel program starts with having the full picture. You’ll be better positioned to achieve a win-win deal, if you have quality data to show each carrier what you know and what you need.

The reality is that TMCs and Corporate Buyers are still at a disadvantage in the type and amount of data that can be obtained. In fact, until recently, airlines have had more information than agencies ­— information like indicators that provide airlines with insights that allow them to understand how they are performing, and to establish their objectives for a specific O&D, market, region, etc.

But what if corporations could build partnerships on shared business interests?

Knowledge is power

You probably already know that, because you’ve been doing negotiations for a long time. You have objectives for your travel programs, and for each client’s air negotiations. You’ve done your homework and have more of the information needed to help each program achieve its goals. You may be wishing you had more information available to you — information to understand how airlines make their decisions.

QSI fair share analytics

What if you could anticipate the airline’s next move and prepare to make your move accordingly? You may both have growth targets for the same market.

What if, by anticipating market changes, you could understand what’s impacting their bottom line? You may actually bring value to them to fill gaps in their seasonal share.

Think like an airline executive

Now, you can use the same data the airlines use to make critical route and contract decisions.

Airlines rely on a share-based model that uses aviation data — like service frequency, aircraft and route type — to analyze and predict demand across their routes and schedules.

The “fair share” model incorporates this information into a formula known as a Quality of Service Index (QSI). Airlines leverage the findings to determine their expected share of traffic in any given market.

Using standard analytics means corporations and their TMCs gain more profound insights into these same market trends giving everyone involved  access to an accurate, flexible, timely and user-friendly tool that leverages the same big data technologies the airlines use.

In fact, QSI Fair Share (or “Fair Market Share” as it’s also called) is a standard metric for airline planners and sales.

Every airline is monitoring which of their O&Ds are most profitable, and in which markets they want to shift share to make the most of the traveler’s interest in their product.

If you have ever daydreamed about being able to think like an airline leader, it may be possible.

At Cirium, we’re exploring what analytics will empower more relevant interactions and accelerate decisions to shape the future of travel. To learn more, explore what you can do with your commercial strategy. Or read more articles like this.

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