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The new team in Revenue Management.

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Source: Glenn Tilton

Date: Jun 10, 2005

Hi, it's Glenn. It's Friday, it's June 10th and I'm calling from Chicago.

While we all know that cost management and cost containment will always underpin the success of any airline in this hyper-competitive business, the products and the services that we offer our customers are the ways that we're going to continue to differentiate ourselves from our competitors at United.

The other side of the cost equation is, of course, revenue -- and revenue relies entirely on the choices our customers make every day. While we relentlessly continue to push our costs down at United, we will not lose sight that it's really all about the customer.

Yesterday, I spent a good part of the day with our new team in Revenue Management, Sales and Marketing, to talk about some important business initiatives that are already underway in the Customer Division.

The work that we reviewed and discussed together was an excellent example of the customer-focus that will be driving United forward in the future.

As Tara Tonner -- our District Sales Manager in New York -- said when she talked about the Strategic Sales Transformation that is well underway in Graham Atkinson's Worldwide Sales team... corporate customers are already beginning to see evidence of how we have changed our approach in our relationship with them.

Using a dramatically redesigned sales process, we are doing a much more thorough job of assessing the needs and the priorities of these customers, which enables us to better meet those needs and to gain new corporate clients as a result.

Brian Albano, who was here together with Tara, one of our Strategic Account Managers, also shared how the new sales process and tools have directly improved his interactions and his success with very prominent accounts.

This is the type of focus that we need across our entire enterprise at United, in each department and in every division of the company. Developing and executing on well-designed plans to give customers what they want from our company -- that's what winning companies do every day and that's precisely what we're going to do.

We are in a strong position versus our network competitors. Having done much to restructure the company in the last two and a half years, we are approaching the point from which to compete successfully.

This opportunity is something that John Tague and Pete McDonald have also been talking to you about in the employee meetings throughout the company... and of course with many of you today in Dulles.

With our assets positioned where they make the most sense and everyone in the company focused every day on delivering value for our customers, we are now able to begin the process of transforming United into a leading company.

The team in yesterday's meeting clearly understands that important fact, and the opportunity that it represents, and was thoroughly engaged in how their work will translate into a more compelling and competitive customer value proposition from United going forward.

Dennis Corrigan and Sandy Gantt talked about what we are doing together to bring in more revenue from our premium cabins, a clear product differentiator for United versus our low-cost competitors.

Rachel McCarthy and Marty St. George focused on how we will be enhancing our international premium products, and Gloria Berndl and Dave Keenan talked about ways they are working to leverage Mileage Plus, the leading loyalty program in the business, into more revenue possibilities for United.

On the distribution front, Rob Salt talked about how we are reducing costs through our existing channels while also creating new sales channels that reflect customers' changing preferences and make the best use of new technology.

All of this is great and very encouraging work, and we will hear more from this group in the near future.

We also talked in the meeting about what else needs to change at United for us to win in a very competitive worldwide marketplace.

When we make business decisions to proceed in a particular, certain direction -- decisions that are based on how we can better serve our customers -- each individual and every team is accountable for delivering results. And, in the future, we will be doing more work across the organization to get the best outcome possible against those customer objectives.

Since the day that we filed for Chapter 11 protection, and in the midst of dealing with our huge cost issues and in the midst of the restructuring, we have continually said and reminded ourselves of the importance of our customers. Remember, we have said, this restructuring is our restructuring, not our customers' restructuring.

Because we delivered a better service and we did not forget them, our customers did not abandon us. Now, we will work hard to reward that loyalty. We'll understand what they want and what they're willing to pay for, and then we will deliver that experience better than any of our competitors.

We continue to make great progress, and we fully intend to take full advantage of that progress... and, to extend the work to every aspect of the business as best as we can. As everything I heard yesterday confirms to me personally, we are moving in precisely the right direction.

That's all for now. I'll be recording again soon. Until then, stay United.

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