Capacity Allocation Analysis Platform

Airlines struggle with a lack of coordination across functions, leaving profit and growth opportunities on the table. ZS’s CAAP tool can help.

Our work across a range of airlines has revealed a consistent problem: While each commercial function (revenue management, sales, loyalty, marketing and distribution) works hard to make optimal business decisions, a lack of coordination across departments results in misaligned efforts or, in the worst case, efforts that work against each other. The root cause of this is that each department uses different data and metrics, and operates in a different context. While it’s difficult to create a picture of an airline’s business that looks across departments, doing so is critical to driving the best results.

How can you create such a picture? By using ZS’s Capacity Allocation Analysis Platform—or CAAP, for short.

CAAP is an advanced analytics tool designed to help your business become more efficient by connecting previously siloed teams—and their data. Rather than just reacting to historical performance data, companies can use CAAP to generate more powerful insights to improve their commercial strategies.

Here’s what CAAP can do for your company:

Capability Action
  • Incorporate both market data (such as IATA’s Direct Data Solutions initiative) and your airline’s data to create a data set that works across departments
  • Pinpoint opportunities to increase revenue by highlighting “choke points” in your network that restrict revenue generation
  • Support multiple “what if” scenarios to test various pricing assumptions, potential capacity or scheduled changes, or anticipated competitor actions
  • Gain valuable insights by being able to view results across seasons, groups of routes, travel agencies, points of sale, and other important variables
  • Bridge business processes across functions, allowing different departments to easily align on the same strategy
  • Tie together KPIs for revenue management, pricing, network planning and sales
  • A cloud-based solution that deploys quickly with minimal impact on your commercial team and few requirements on your IT team
  • Use ZS’s Quality Service Index, industry passenger data, and your airline’s forecast demand to estimate your airline’s fair market share for each season, day of the week and even departure time window, all of which can better drive commercial strategies
  • You can create multiple schedule scenarios and compare revenue impact across scenarios before choosing which to publish
  • By season, optimize inventory across connecting passengers and point-to-point passengers to maximize revenue, and translate this directly into sales team goals at the travel agency account level
  • Sales teams can gauge at the account level the revenue impact of rescheduling a flight before the schedule change is implemented
  • Commercial leaders can use CAAP’s sales targets and revenue budgets, optimized for passenger networks and driven by fair market share, to drive performance metrics and measure success

How Airlines Benefit From CAAP

You save time and money during planning with the flexibility that CAAP offers. CAAP’s dashboards allow you to compare various modeling scenarios and planning windows side by side, enabling your team to make more quantitative, informed decisions when choosing a scenario to implement.

Using CAAP, your airline can simulate the revenue impact of various promotions for their network, and empower their revenue management and sales teams to jointly choose the best of those options.

After you choose a scenario, your revenue management and pricing analysts can use CAAP’s strategic actions dashboard to view fare-yielding or capacity utilization actions and insights for each region, country, market or point of sale. While analysts proactively implement these strategies into the revenue management system, the sales team coordinates with them and promotes those same strategies in the market. CAAP even generates the revenue budgets with which both sales and revenue management operate. This market-driven pricing and inventory management strategy across segments and channels allows the analysts and sales team to proactively identify and explore revenue opportunities.

CAAP breaks down silos and aligns cross-functional commercial strategies and tactics to reach a common goal: maximum revenue. It promotes collaboration among revenue management, budgeting and sales teams to develop forecasts, budgets and network plans based on the airline’s fair market share.

Better decisions mean stronger performance:

  • Increased accountability for achieving revenue targets
  • Increased efficiency and effectiveness through more collaborative decision-making between revenue management, sales and planning teams
  • Improved yield and load factor through more proactive management of customer segments, channels, and high and low compression periods

Why ZS?

With years of experience in the travel and transportation space, in addition to decades of analyzing data for the benefit of companies all over the world, ZS is eager to improve how your airline functions and to increase your revenue with tools like CAAP.

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