Improving yield management at a travel & leisure operator
The issue
- A leading leisure travel group needed to make a change in Yield Management practice to optimise commercial outcomes
- Profitability under strain due to increased competition and uncertain market conditions
- A complex and out of date system eroded trust in Yield Management practice
- Limited understanding of commercial impact of pricing decisions and a lack of operational control
- No alignment behind informed vision to guide the development, deployment and industrialization
- Capability gaps
- Siloed understanding of the potential impact of digital technologies
What we did
- Market analysis
- Developed strategy & analytical model to explore critical aspects of Yield Management Operating Model
- Developed blueprint roadmap to deliver vision & clear programme structure
- Business transformation
- Executive coaching
- People & culture change
- Flexible approach enabled client to retain ownership
The results
- Estimates over next four years indicate cumulative improvements in gross margin, uplift in aircraft utilisation & increase in spend per customer
- Improved cross-functional collaboration
- Uplift in gross margins for last season
- Commercial mindset taking hold in organisation
What our clients say
“As a result of Curzon’s support a strategic and digital leap has been made in how we manage the entire asset lifecycle to transform our Developer Service experience. This is a programme and a product that sets a new benchmark within the industry.”
Jason Tucker
Director of Alliances & Integrated Supply Chain, Anglian Water
An award-winning team
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Capturing a greater share of the general aviation value chain
The issue
- An inherent lack of commerciality where services were being provided to incumbent FBO at no cost
- A lack of understanding of customer requirements
- A high operational cost was carried to manage changing customer needs & poor pilot & broker practices
- Customers transit through the airport was poor & the lounge & facilities provided were outdated
- Other airports were capturing market share by offering a superior service offering
What we did
- Smarter commercials & charging for service identified for revenue growth i.e. Marshalling
- Affiliated 3rd parties identified to provide onward travel & concierge services along with proposing a discrete duty free offering
- Levying cancellation charges when appropriate to drive improved customer behaviour
- A customer journey redesign to address concerns & recapture market share
The results
- Within 4 weeks the project identified growth opportunities to double existing revenue & double the share of the value chain
- The future strategy proposed changes to existing practices and partnerships
- Redefined customer proposition was suggested to maximise revenue & improve customer experience
An award-winning team
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Operating model refinement and commercial focus to deliver a step change in business performance
The issue
- A subsidiary of a global defence company, providing technology-based R&D solutions and advisory services to government and defence organisations and private sector companies at the cutting edge of secure communications and cyber warfare
- Despite repeated calls by Group to improve, the business continuously failed to meet performance expectations on revenue growth, profit margin and free cash flow
- The business was suffering from an overly-layered and siloed organisation structure, with burdensome management processes and lacking commercial focus
- The underlying issues were structural and an absence of effective performance management, wrongly being justified because business discipline would stifle creativity and innovation
Solution
- Undertook a business-wide design and business case development stage to anchor the current performance failings and the required changes
- Implemented over a 12-month period working alongside the business unit leadership with a structured plan;
- A new leadership team established, with stronger governance processes, metrics, and proactive staff engagement
- Simplified the operating model and aligned capabilities to market needs
- Re-framed value propositions and initiated the move into critical national infrastructure
- Implemented resource management to drive productivity uplift
- Implemented new mentoring and HR processes to underpin talent management
- Supported post-implementation by refreshing the plan
The results
- 29% revenue uplift (versus budget target)
- 18% Return on Sales achieved versus a 15% target for the financial year
- 90% improvement in business cash flow
- 10% points increase in Engineer productivity, with a continued increase to 74% utilisation in year 2, and climbing
- Transformed the operating model and business culture to be customer and commercially focused
- Established performance management at the business and individual level
- Underpinned changes with disciplines, governance, reward structures and visibility
- The Project won the Management Consultancy Association’s award for “Performance Improvement in the Private Sector” with full sponsorship of the client
An award-winning team
