Case Study

A major low cost airline uses Aicadium’s dynamic pricing engine to upsell products and maximise revenue

Need

Revenue management is a key capability in the airline market which traditionally has been kept fairly static, rules-based and relying heavily on human intervention and intuition.

A major low-cost airline was looking to adopt greater intelligence in order to be able to dynamically adjust seat prices. They also wanted to better target upsell ancillary services to passengers, such as meals and additional baggage.

Solution

Dynamic pricing engine with an integration to their existing Navitaire airline inventory and fare system. Dynamic prices are generated and set based on past purchasing trends and market conditions. Algorithmic decision making for pricing is based on masses of data from structured and unstructured data sets.

Propensity models to predict the likelihood to purchase various ancillary services at the individual level.

Impact

Representing a revolutionary step towards a different paradigm, the airline is able to step away from static pricing to a more dynamic approach. Propensity models allowed the airline to better focus their upsell marketing offers for higher ROI.

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