UPGRADE TO TRUE O&D BID PRICING

ULTIMATE, NETWORK BASED REVENUE OPTIMIZATION

Nobody will question anymore how crucial Revenue Management is for airline profitability.

The days that static buckets or simple load factor optimization did the trick are far behind us.

Revenue optimization has rapidly become more sophisticated.

Our support helps to enrich your RM process with a number of vital scientific innovations.

  • Driven by sales performances of price levels
  • Seat/space allocation via integral network bidding
  • Centre stage for human expertise
  • Backed by streamlined dynamic algorithms
  • Optimal pricing for groups
  • Proven 25% better than static bucket approach

SCIENTIFIC OPTIMIZATION

Which innovations do we bring?


It starts with the heart of the matter: we all talk about Revenue Management, but optimizing revenues is not the objective. That's optimizing profits.

This difference is increasingly significant as the gap grows between the amount paid by the customer and what the airline finally retains.

Consequently we've also refined the way to value how price elasticities affect actual gains.

This, together with adding actual measured sales capabilities to the equation, results in a very advanced optimization approach. Especially for that vast majority of flights that won't be full.

Further we feature unprecedented True O&D Bidding on a network level, breaking with the traditional sub-optimizing nature of RM.



DRIVEN BY SALES RATES

The great majority of flights will not be 100% full.


Most RM approaches center on capacity protection for full flights and price stimulation on weak flights.

We take a new approach on flights that have a load forecast below 100%.

Rather than anxiously pushing load factors, and unnecessarily diluting yields along the way, we optimize based on the earning power of the combined sales channels.

Price acceptance rates shift in time and unless the flight will be full, this is the factor that drives profits more than anything else.



O&D NETWORK BIDDING

Prioritization between different O&D flows.


In a network with a mix of local traffic, thru-flows and connections, it's no use to sub-optimize individual sectors.

True O&D Bid Pricing determines the optimal allocation of seats to different O&D's at different fare levels.

Also for group bookings, this is the way to determine the right economic price.

Our keen algorithms to do this optimization are innovative on their own, making the entire process much faster and thus making integral network optimization practical for daily use.