Quality of Work Life: an evolving definition
Sia Partners supports customers in the development and implementation of their Pricing and Revenue Management strategy. Sia Partners also invests in R&D into the evolution of Pricing and RM tools thanks to our data science lab and our partnership with a start-up which specializes in this field.
Our areas of expertise range from high-level strategic projects to the implementation phase. We cover 4 major fields:
• Pricing Strategy: align the pricing strategy with business challenges faced by the company (margin, load factor, etc.) and adapt to new business models
• Innovation & Big Data: develop new pricing and RM strategies and enrich existing pricing strategies with new data (CRM data, unstructured data)
• Deployment and Evolution of RM: implement and strengthen the pricing strategy, create an RM cluster and provide user training, and monitor the design and development of RM IT tools
• Revenue Integrity: secure revenue, control sales and ticketing conditions, and guarantee the right fares are applied
Sia Partners has assisted clients in the tourism and transportation sectors in the implementation of new Revenue Management and Pricing tools, from strategy definition to implementation.
Sia Partners assists clients in the deployment of new RMP tools that can integrate new internal and external data, and based on powerful sales forecasting algorithms to improve decision-making, automate activities that are still manual, and thus optimize sales and enrich the work of analysts.
Identified 5 revenue opportunities in adjacent markets.
Conservatively generating €9m incremental revenue per annum by year 5.
The National Transport Authority (NTA) has started to put certain routes out to tender. Traditionally, our client did not have to compete to be awarded public transport contracts, but this model is changing and the company needed to adapt. On top of this, the tendering process, with its focus on costs, put our client at a disadvantage. Generally, the transport provider’s costs are higher than the market average due to the unionisation of the company driving up labour costs.
We identified five potential opportunities to generate commercial revenue. These provided our client with options they can explore and develop in order to decide which aligns best with their aspirations. We also provided high-level five-year financial projections for each opportunity to demonstrate the financial viability of each along with a high-level implementation plan.
Several ‘quick-wins’ were identified, which could be rolled out with minimal investment within 3 months and would generate revenue which could be used to fund the larger, capital-intensive opportunities. The opportunities identified would generate a conservatively estimated €9m in annual incremental revenue with an annual profit of €4.2m.
These opportunities would significantly reduce the company’s reliance on its PSO business to generate revenue and maintain profitability. It would also enable it to better deploy its current assets and increase the overall return on assets of the company. This would also enable the company to increase investment in several areas as their ability to keep profit earned from their PSO contracts is hampered by limitations set by the NTA.