BCG expert meets Bucks Aviation students to discuss Bionic Revenue Management
Date: 21st Jan 2021
Buckinghamshire New University students have been entertained by an innovative and futuristic talk about bionic revenue management in the aviation industry.
Bionic revenue management is the term coined by BCG for enhanced performance of revenue management through the combination of: technological enablers, such as advanced artificial intelligence analytics and new-generation human-machine interfaces; and human enablers, including analysts as “designers” and connected cross-functional teams. The combination of these enablers leads to smart ticket pricing, total revenue optimisation and other major benefits for the aviation industry. The impact of the COVID-19 pandemic has given travel companies new impetus to find alternative ways of engaging and recapturing customers.
The lecture was delivered to undergraduate and postgraduate students on the University’s aviation degrees by Stefano Rocchi, Boston Consulting Group’s (BCG) Associate Director and a senior specialist in the BCG Travel and Tourism Competence Center. Stefano introduced BCG’s ‘bionic approach’ and gave a compelling overview of the history of revenue management as a sophisticated and essential business tool for airlines.
Speaking after the lecture, Stefano said: “BCG have been working on evolving the boundary of the revenue management capabilities. The idea is to provide a new organic frame in which all dimensions of the problem (models, human capabilities, technology) are developed organically and contribute to more effective results. The new frame has been named Bionic Revenue Management. BCG has invested in collaborating with academia on such frame to get feedback and contributions, and we welcome the opportunity to engage with the aviation academic team and the students at Buckinghamshire New University.”
Francesco Ragni, Course Leader in Aviation Management at Buckinghamshire New University, said: “The aviation industry has always been at the forefront of innovation in the practice of Pricing and Revenue Management, more than any other service industry. At Buckinghamshire New University, we want our students to be very familiar with the sophisticated techniques used by airlines to maximise their revenue, and with key concepts such as price elasticity, dynamic inventory allocation and the power of analytics. BCG is a recognised leader in this space, and we found their paradigm of ‘bionic revenue management’ inspiring. We were delighted to host them as guest speakers and we look forward to continue exchanging ideas on the subject.”
Readers can find out more about bionic revenue management by reading this article on BCG’s website. As one of the largest global strategy consulting firms, Boston Consulting Group is very active in aviation and tourism, with a dedicated specialist team and a competence centre for revenue management in travel. In their pricing and revenue management work, they are engaged regularly by airlines and other travel operators, publish white papers and run a highly-regarded annual summit.
Buckinghamshire New University is a leading higher education centre for aviation and tourism, with a dedicated teaching team that includes both academics and industry experts. You can find out more about its courses here.
The University looks forward to once again welcoming Stefano to speak with students in the future and working with the BCG team.