Average 3x ROI: How do we know?

January 31, 2019 | Author: Volantio Inc.

A few of you have written us asking what we mean by "3x-5x Average Revenue Uplift" (by the way, we love hearing from you, so please keep those emails coming!) The simple answer is that Volantio has worked with its Yana partners to build an extremely robust revenue accounting system that sits at the core of our platform. We refer to this system as the "Ledger."

When the Yana platform takes action on a flight, such as buying back inventory, we immediately begin to track everything that happens on that flight after the fact (new bookings, cancellations, etc.) We then automatically "run the clock backwards" to determine how much profit the airline would have made without the Volantio platform running, and compare that to how much they actually made. In most cases (though not all), that number is extremely positive, and this number forms the basis of the revenue uplift calculation.

When we first launched, the uplift was barely ~2x. However, it has grown steadily over 2018 as we've added in a number of optimizations, including insights from Volantio's machine learning analysis. In fact, in the fourth quarter we saw a record uplift of 49x on a single offer. The fact that the average is still only 3x - 5x suggests that we still have significant opportunities to improve value creation, and this is a core area of focus for Volantio in 2019.

If you are interested in discussing more about the Yana platform and our feature developments in 2019, please reach out to our CEO Azim Barodawala directly at azim@volantio.com.