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CA Advisors offers Nesting Manager (NestMan), a PC-based, analytics system for Research & Development
in Yield Management (YM). The chief objective of NestMan is to determine the availability figures for
various offered services based on respective authorization levels and seats sold.
» Multi fares to increase revenues
The many full-fare and discounted services are the airline fare products. YM controls the inventory
of full-fare and discounted seats. The objective of YM is to maximize the generated revenues out of
the inventory of seats. A significant potential exists for substantially increasing revenues via
methodical seat inventory control. For that, YM has emerged as a vital and prominent task.
» Nesting structure
A simple reservations system structure controls separate inventory of seats for each fare class (or
fare product). In a nested reservations system framework, on the other hand, fare classes are formed
in a way to avoid refusing a request for a fare class if the availability exists in any lower fare
classes. Fare-class inventories are named buckets. In the nested environment, the last seat is
always available in the highest bucket.
» Nesting rules
YM employs sophisticated analytical modeling to determine the authorization limit for each fare
bucket. The nesting principle is then used to calculate the availability in various buckets based
on seats sold. One rule is normally applied for all flights, representing the nesting principle in
a nested reservations system. Since various nesting rules influence the availability calculations
differently, applying one rule to all flights can potentially impair maximizing the revenues.
» Our nesting solution
NestMan allows the application of several nesting rules. The user can choose the most appropriate
rule based on the flight characteristics. The implications of using different rules can be readily
compared. Each flight is controlled distinctly, and sub-optimization is avoided.
NestMan is an easy-to-use system. The application of this system provides a tremendous opportunity
for operators to enhance revenues. The state-of-the-art utilization of yield control methodologies
are embodied in the framework of NestMan application. The system can be easily implemented,
presenting immediate benefits.
Please contact us for further information
regarding our NestMan.
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