HUP0700666A2 - Business method for improving load factors of flights operated by airlines - Google Patents

Description

they provide.

Business process to increase airline seat utilization

The invention relates to a business method for improving seat utilization in airlines using a well-known reservation and ticketing system.

Each airline or airline association makes serious efforts to maximize the utilization of its flights. Ticketing and reservation categories constitute a complex system, and it is not the purpose or function of the present invention to propose any modification to these traditional systems.

In order to deepen the relationship between passengers and airlines, individual airlines and/or their associations have developed specific frequent flyer programs. Frequent flyer programs are referred to by companies under a variety of names and primarily serve promotional purposes, namely, they reward passengers of a given airline or association with bonus points in proportion to the distance flown and for other flight-related services, and complex systems have been developed for the use of bonus points.

One of the advantages of frequent flyer programs for airlines is that they attract passengers both on the interest and emotional side. There are different levels of frequent flyer programs, and members receive benefits according to the levels, which include the use of different levels of lounges, preferential seating, ticket and baggage handling. Frequent flyers can also enjoy additional benefits when booking seats, changing flights, and assigning seats to a class. Many frequent flyer programs have contractual relationships with certain hotel chains, car rental companies, and airport shopping facilities, and based on the amounts spent there, frequent flyers can use bonus miles or discounts proportional to their spending there. However, the biggest advantage is the free flight ticket provided based on bonus points, which can only be issued if certain conditions are met.

There is only a limited amount of bonus points that can be used per flight, and airlines have their own interests in mind when setting the limits.

-2 Despite the current widespread use of reservation and frequent flyer systems, the seat utilization of flights is not yet optimal, depending on the airlines and seasonal fluctuations, etc. The average occupancy rate of flights is 55-80%. Consequently, many seats remain unused.

The use of frequent flyer programs certainly has a positive impact on flight utilization, but the conditions for obtaining bonus points seriously limits the number of users, as only passengers who spend a lot of money on airline tickets and the aforementioned additional services can have a significant amount of bonus points.

In addition to and essentially independent of the systems available to the general public, individual airlines have developed and well-developed reservation and ticketing systems for their own employees. The possibility of employee listing extends to employees of the companies and their designated family members. These entitlements are recorded in the computer system and the persons concerned are also issued with a photo identification card. Employee tickets are made available to the entitled persons for a certain fixed fee. Some airlines also provide discounted airfares to employees of other airlines under the same conditions as their own employees. Tickets issued to employees (with the exception of some special types, such as anniversary tickets, which are issued in limited numbers) do not entitle them to reservations, they only allow listing and only become final usable tickets if there are still seats available for the listed applicants at a short time before the flight.

According to publicly available statistics, the above-mentioned systems cannot guarantee 100% 25 flight occupancy, although airlines have an economic interest in receiving revenue from seats that would otherwise remain unused.

The aim of the invention is to create a business solution that improves the seat utilization of flights without adversely affecting traditional ticket sales, i.e. without losing paying passengers. This business method does not require the passenger to make previous flights involving high costs, which is typical of various frequent flyer programs.

-3 We have identified a significant segment of the population who would be willing to travel by plane frequently if the price was affordable. At the same time, they are flexible in terms of the date, time and destination of their trip if the price of the flight ticket is reasonable for them. This includes retirees with a lot of free time or students and teachers.

The essence of the business solution proposal according to the invention is that a given airline or their association provides such passengers with a special club membership for an annual fee, which can be called, for example, World Passenger Club (hereinafter: WPC). During their membership period, the club members are given the opportunity to list on the flights they have selected, and if there is a free seat on the flight in the period immediately preceding the trip, the club members on the list are granted travel rights for a discounted fee determined for them. The number of travel opportunities for the club members, i.e. the possibility of using the system during the club membership period, is practically unlimited, and is limited only by the financial and time capabilities of the club members.

This solution provides optimal results under certain conditions: the number of valid club memberships issued by each company should be limited, and on each flight, only as many club members can be granted travel rights as there are empty seats left after paying passengers. Some airlines keep the empty seats separately by class, while other airlines allow a certain degree of interoperability between classes according to their own internal regulations.

In order to keep a fair and transparent record of travel needs, club members must be provided with the opportunity to be listed. In this system, the travel intentions of club members applying for a given flight are recorded on a list by the reservation system computer in return for a fair, e.g., 2 USD listing fee. We note that listing is a widely used solution in computer reservation systems; the present solution merely creates a new type of the usual listing practice. The number of club members who can be listed on a given flight is equal to the number of empty seats on the flight. Being on the list does not mean a reservation, i.e. the airline does not guarantee that the listed club member will get a seat on the given flight, but it does guarantee that the empty seats on the flight will be filled.

-4 is issued to listed club members in the order of listing. This privilege is also valuable, since the number of seats on the list is more or less consistent with the expected number of empty seats, and when club members apply for the list, they know both the number of seats on the list and their own number, so they can estimate the probability of being on the given flight. Those who take a risk and show up before the flight departs despite their unfavorable listing number or low probability of departure may be lucky, but they must also be prepared for the possibility that there will be no seats on the flight for them.

The application for the list is time-limited. It is preferable if the listing opportunity opens when the majority of paying reservations for the flight have already been completed, so that the difference between the number of listed seats and the expected number of empty seats is minimal. This time can be within 1-4 weeks before the flight departure date, preferably the second week (e.g. 14 days before the departure date), but this can be changed in the interest of the airline. The latest time for inclusion in the list is the time when the paying passenger list is closed, for example 4 hours before the flight departure. After that, if the WPC member appears in person, he can only receive travel authorization based on an individual permit; this option is also time-limited: for example, it is valid for 25-30 minutes before the scheduled departure time. Club members can be overlisted to a certain extent, as the opportunity to travel is not guaranteed for listed club members. Accordingly, it is possible that some club members on the list do not show up until the flight departs, and it often happens that some of the paying passengers do not show up until the flight departs, and then the number of places on the list will be larger. This option makes sense for overlisting WPC members. Based on the places on the list, boarding passes are issued to the club members present and on the list in the order in which they were listed, after the list of paying passengers is closed. In order for WPC members to issue boarding passes and handle baggage, as well as pay the required fee quickly and efficiently, it is advisable to develop specific and fast payment solutions for club members. Registering the club members' data and recording them on the list allows for quick, almost immediate recording of personal data. In order to direct any club members who may be left behind to other flights, it is advisable to establish or designate one or more separate WPC counters at each terminal, whose sole task is to serve WPC members.

- 5 Since being on the list does not in itself mean that passengers who arrive at the airport and miss their flight can still travel to another destination on the same day. We have mentioned that WPC passengers must have a certain degree of flexibility in choosing their destination. If a passenger arrives at the airport at the given time and cannot travel on the chosen flight due to lack of space, the WPC service will inform them of the available seats on the given flights on that day or in the next few hours. It is almost certain that they will be given a seat on one of the flights and their travel needs will be met. This passenger will definitely be able to reach their original destination (even if not on the same day) with a transfer, and will get to know interesting countries and cities in the process. The more airlines belong to a given alliance, the higher the probability of travel.

Missing the aforementioned flight may be inconvenient or problematic not so much on the departure as on the return trip. The WPC system can also be designed in such a way that, for a given club membership level, the club member can gain not only the right to list but also the right to reserve a seat for a given number of trips (e.g. 2-4 times per year) at a slightly higher price according to another tariff table. This means that if he wants to return from a distant city within a short time, he can use the seat reservation option. We also note that WPC membership does not exclude the club member from buying a normal flight ticket with a seat reservation under normal conditions and prices, and in addition to WPC membership, participation in the frequent flyer program is also possible, but frequent flyer points cannot be awarded under normal conditions after WPC trips.

Club membership can be issued not only for 1 year, but also for a season within that period (e.g. winter period, some event series, season). The amount of the membership fee, the number of members and the amount of each travel fee can be calculated using a cost-effectiveness analysis. A lower price entails greater turnover and, in view of this, the number of club members should be limited. A higher price entails the need for more guaranteed travel opportunities on the part of club members.

Club membership implemented under the conditions outlined above therefore does not take away passengers from the frequent flyer program participants and does not represent competition for the general public who buy tickets, because business travelers cannot afford it.

-6they themselves face the risk of uncertainty associated with purchasing WPC tickets and are also not flexible regarding the date and time of the flights to be used.

The proposed business solution, by creating a club, provides a discount for a potential group of travelers who would like to take a large number of trips each year, but have not been able to satisfy this need due to high prices.

The larger the organization operating the WPC, the more benefits club members enjoy. There are benefits even for a single airline, but this solution provides increased benefits when club membership extends to the entire network of airlines in alliance with each other.

For club members, ticket purchase can be simplified by means of a beneficial organizational measure. Club members are not obliged to pay for their tickets in cash, but can pay, for example, by check or prepaid voucher. The check can be issued in various denominations, for example, it can represent distances to be flown (in miles or kilometers) or flight units. In this case, WPC fares can be expressed not only in money, but also in distances to be flown or flight units, and if the system is cleverly designed, club members can pay with their checks or coupons. In today's computerized world, checks or coupons can be replaced by electronic payments. The membership card is the most suitable means of identifying club members. Of course, the marketing and implementation costs of the system cannot be saved, but the additional income from the WPC program for the airline not only increases current revenues, but also improves seat utilization.

The solution is therefore beneficial for a specific but not insignificant group of travelers with financial means, its popularity is expected to gradually increase during its implementation, and it also improves space utilization.

The solution can also provide other benefits. The identification and verification of the facial ID card creates the possibility of applying simpler and cheaper passenger handling procedures. The ID card can have a field that allows electronic reading, thus minimizing the time required for card input and verification 30 .

The existence of the WPC club also increases passenger loyalty to the airline or airline alliance, and the growing prestige has a positive impact on the company's operations and business results.

The operation of the WPC system is illustrated through the following examples:

The data related to the reservation and listing of a given flight are summarized in tables. In the tables, each event or status is indicated by an abbreviation. The meaning of the abbreviations used is:

Version 18/82 There are 18 business seats and 82 tourist seats on the aircraft.

Pax:P 20/90 20 business passengers and 90 tourist passengers can be accommodated with OK booking.

Pax: 30 days The number of passengers with OK status 30 days before the flight departure.

Pax: 14 days The number of OK passengers 14 days before the flight departure.

Pax: C Number of passengers at closing time (in our example 30 minutes before departure).

WPC: P 14 Number of WPC members that can be listed 14 days before the flight departure.

E.g. 15/70 15 passengers can be listed in business class and 70 in economy class.

WPC: 4 hours Number of passengers listed 4 hours before flight departure.

WPC: C Number of listed passengers who received OK status at closing.

OK OK number of passengers at departure.

Example 1, Table 1

Passengers available Booked and listed passengers Closing passenger information Version 18/82 Pax:P 20/90 Pax:30 days 1/9 Pax: 14 days 2/12 Pax: 4 hours 5/15 Pax: C 3/13 WPC: P14 15/70 WPC: 4 hours 15/70 WPC: C 15/69 OK 18/82

The data in the table shows that at the time of closing, the number of paying passengers in business class was 3, and in economy class 13, so there was plenty of free space in both classes. The number of WPC passengers listed 4 hours before departure was 15/70, but one passenger

- 8 did not show up, so 15/69 WPC passengers received boarding passes, and the flight was filled by paying and WPC passengers together. It can be observed that Pax: P 20/90 is larger than the actual number of seats. This follows from the fact that a small amount of overlisting or overbooking is allowed, because the system assumes that 5 given number of passengers will not show up. The number of WPC passengers listed 4 hours before departure was therefore 15/70.

The final situation will be determined shortly before departure. This is when it becomes clear if someone does not show up, or if people who were not on the list show up, e.g. if they are redirected to this flight by the WPC service from other flights.

The table does not show the history of the short period before departure. In our example, when the list was closed, 68 out of 70 listed WPC members showed up at the location, but two additional passengers showed up who were directed to the flight by the WPC desk and were not on the list. The actual number of available seats in economy class was 69, so the 68 listed and showed up WPC passengers received boarding passes, 15 and only one of the two directed WPC members was able to board the flight. The missed WPC passenger can be directed to another flight by the WPC desk, or the passenger accepts that he/she could not board the flight.

Ticket and baggage handling for WPC passengers is done at the normal check-in counter or, where there is automatic check-in, using the machines (for this, the WPC member must insert the WPC card into the machine). This option is only available to listed WPC members.

If there are many seats available for the listed WPC members on the flight, the ticket manager will issue a normal boarding pass to the WPC members who are guaranteed to travel. For those whose boarding seems uncertain and depends only on the number of paying passengers with OK status 25 appearing, a boarding pass without a seat reservation will be issued at the ticket management and a standby or temporary tag will be placed on their luggage. With these documents, the WPC passenger can proceed through passport control and security control to transit and to the gate assigned to the flight. The final decision will be made there. The club member can pay the WPC travel fee at the check-in counter 30 . The passenger can pay electronically against the deposit assigned to his/her card, or where payment by check is possible, the ticket manager will tear a check for the nominal value of the flight fee from the checkbook, or, for example, they can use a traditional airline ticket.

-9WPC counters should also be set up in transit, where they will direct WPC members who are missing to other flights. Checks or coupons taken from missing passengers will be returned at the WPC counter.

In our example, we could list WPC passengers in both business and economy class, 5 but listing WPC members in business class is not a basic requirement for operating the WPC system. Based on similar principles, the given airlines can apply a higher fare for business class.

Example 2, Table 2

Passengers available Booked and listed passengers Closing passenger information Version 18/82 Pax:P 20/90 Pax:30 days 15/60 Pax:14 days 18/65 Pax: 4 hours 20/70 Pax: C 18/69 WPC: Fri 14 -/15 WPC:4 -/15 hours WPC: C -/13 OK 18/82

Table 2 reflects the events, which shows that 2 business passengers and 1 tourist passenger did not show up among the paying passengers. 13 of the 15 listed WPC passengers, as well as all paying passengers, were able to travel, as 18/69 paying passengers with OK reservations showed up at the closing time.

14 listed WPC club members showed up, but the last one listed was unable to travel, 15 because there were only 13 empty seats. This passenger was sent in a different direction at the WPC counter 15 minutes later, and the listing fee was refunded to him at the counter.

Note: only listed for economy class.

Example 3, Table 3

Passengers available Booked and Listed Passengers Closing order details Verso 18/82 Pax: P 20/90 Pax:30 days 18/70 Pax: 14 days 20/75 Pax:4 hours 20/85 Pax: } 18/82 WPC: P 14 -/10 WPC :4 hours -/10 WPC: C -t- OK 1 RAP

There are 18/82 seats on the plane, but due to overbooking, 19/84 passengers showed up, so 3/5 OK passengers were unable to travel.

2 of them were booked on the same flight departing the next day and sent to a hotel, of course the airline paid for their accommodation. The airline transferred the passenger with a business ticket to their original destination. The additional costs of the longer journey were paid by the original carrier. The 10 situations outlined here occur, but their solution is outside the scope of the present invention.

Of the 10 WPC passengers listed, 9 showed up for the trip. The 9 WPC club members were boarded 8 minutes before closing with standby or specific WPC boarding passes because there were still plenty of seats available on the flight. That's why they were put on standby or specific

-11 WPC boarding passes for admission to enable quick decision-making at the exit and avoid flight delays.

WPC club members with boarding passes entered the transit area, but this did not yet give them travel authorization (they had standby cards), and in our example, it turned out at gate 5 that they could not board the flight because all OK passengers had shown up by closing time. Seven club members reached their original destination on a later flight, two were listed for other flights and reached their destination that same day.

We have shown with the examples that the WPC system does not affect the treatment of paying passengers, while listed WPC passengers are very likely to travel on the selected flight 10 times. Otherwise, they can choose to travel to their original destination or to another destination, in most cases on the same day. WPC passengers improve seat utilization. Since they are aware of the rules of the WPC system, including the uncertainty of their boarding, they accept this situation. As compensation for the uncertainty, they can get an unlimited number of trips and choose between routes at a very fair price during their 15-year membership. Consequently, the WPC system provides benefits for both airlines and club members.

Claims (12)

- 12Patent claims 1. A business process for improving aircraft utilization in airlines, where the airline has a known reservation and ticketing system, characterized by: - in return for a specific periodic membership fee, we provide passengers or a specific smaller group of them with a membership right for a given period and a certificate certifying its existence, - we connect a listing module to the reservation and ticket sales system, - we provide listing positions on the aforementioned listing modules of the flights in the system, where the number of places on the list is proportional to the number of free seats remaining after the reservations of paying passengers on the given flight, - we record and store the travel needs of the aforementioned club members in the list positions of the given lists of the given flights, - we provide travel opportunities to club members on the list who appear for travel at the departure of the flight, in the order of their appearance on the list, by issuing a boarding pass after the closing of the boarding of paying passengers, in exchange for a pre-determined fee depending on the given flight. 2. The method according to claim 1, characterized in that the travel requests are recorded in the order in which they are submitted. 3. The method of claim 1, further comprising the following steps: - establishing at least one special ticket counter for the given members at each airport, - those club members whose previous request had to be rejected and who therefore appear at the given counter will be informed about which flights still depart from the same airport on the same day and what the listing options are for the given flights, - we will add the aforementioned club members to the lists of flights they have selected. 4. The method of claim 1, characterized in that, prior to said ticketing step, the consideration is expressed in terms of distance or travel units and is issued to said club members in the form of a check, prepaid voucher or electronically stored - We sell 13 units and during the aforementioned payment step we collect the necessary consideration in the form in which it was purchased. 5. The method according to claim 1, characterized in that the number of club memberships issued by each airline is kept below a given limit. 5 6. The method according to claim 1, comprising providing the inclusion and storage of the club member on the list for a specified minimum fee. 7. The method of claim 1, comprising including a given amount of excess in the number of list positions proportional to the empty spaces. 8. The method of claim 1, comprising: 10 we inform the given members in person, by phone or online about the available list positions for the selected flight in the given module or about the serial number of their pre-listed request. 9. The method according to claim 1, characterized in that the club members are provided with unlimited travel opportunities during the membership period. 15 10. The method of claim 1, comprising the step of also providing the given club member with a limited number of OK status reservations for the selected flight upon request and for a specified higher fare during the duration of their club membership. 11. The method of claim 1, comprising performing said 20 creation steps during a predetermined period, preferably 1-4 weeks before the flight departure. 12. The method of claim 1, comprising: in said generating step, calculating as if the number of seats reserved for said paying passengers exceeds the actual number of seats on the given flight by a certain number. 13. The method of claim 1, wherein in said issuing step, the membership fee is 400-1200 USD, and the specified membership period is one year. The authorized person: DANUBIA Patent and Law Office Ltd. Mihály Lantos, patent attorney