Cost Savings Analysis (When using the FP Corporate Booking Tool)
| Annual Air Spend: | $10 million |
| Average Ticket Price: | $500 |
| # of Annual Transactions: | 20,000 |
| Traditional Service Fee per Ticket: | $40 |
| Total Spent on Transaction Fees: | $800,000 |
First Year Savings using the FAREPORTAL Online Booking System With a 50% adoption rate:
Based on a $10 service fee for online fulfillment: (10,000 X 40 = 400,000) + (10,000 X 10 = 100,000) = 500,000
800,000 - 500,000 = $300,000 Savings in the First year
Second Year Savings using the FAREPORTAL Online Booking System With a 65% adoption rate:
(7,000 X 40 = $280,000) + (13,000 X 10 = 130,000) = 410,000
800,000 - 410,000 = $390,000 Savings in the Second year
Third Year Savings using the FAREPORTAL Online Booking System With a 85% adoption rate:
(3,000 X 40 = $120,000) + (17,000 X 10 = 170,000) = 290,000
800,000 - 290,000 = $510,000 Savings in the Third year
Notes:
- This is a conservative estimate, since we have not added any Increase in Volume and # of transactions in the Second and Third years.
- A customized Savings Analysis for your company can be prepared upon request.
- Savings realized utilizing the FP Consolidator Fare Module are in addition to the above savings.