Sponsored Feature: FLYR Labs
Alex Mans, Founder & CEO of FLYR Labs
Real-world AI that drives revenue and commercial decisions
AI revenue management is the way forward for airlines to truly innovate and stand out from their competition, says founder and CEO of FLYR Labs, Alex Mans.
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New routes, new products, and new competitors, airlines are actively searching for innovative ways to provide a personalized—and profitable—passenger experience that outpaces other market participants. To rise above the rest, airlines need access to better revenue and demand forecasts, superior and reactive pricing power, and a comprehensive view of their revenue potential from the base fare to ancillaries and from fare brands to cargo performance. Following a difficult reconning with its
technology limitations, the aviation industry must now truly invest in innovation—in particular Artificial Intelligence (AI)—to unlock its highest potential and overcome unexpected turbulence. The next evolution, Total Revenue Optimization The use of an AI-based revenue optimization and forecasting platform opens the door to continuous untapped insight that helps surpass revenue performance goals. Deep learning, a particularly powerful subset of AI,
is able to learn how the human brain works and gains knowledge. The technology develops a neural network that accurately maps pathways between what it understands are correlated pieces of data across an airline’s network. Especially when provided with a massively large dataset, deep learning provides unmatched forecasting accuracy that can be used to inform broader commercial decisions across functions like scheduling & planning, marketing, leadership financial reporting, and cargo. For ancillaries and fare families it is important to dynamically set the price to match travelers’ preferences and increase conversion rates. Through deep learning, the understanding of how fare, fare families, and ancillary transactions contextually relate to each other enables airlines to grow their ancillary contribution as a component of total revenue performance. Recognizing how an increase or decrease of fares, for each individual itinerary, impacts ancillary attach values and revenues in either direction is critical to total revenue optimization. A partnership approach to adopting artificial intelligence Adopting new technologies can be scary to any complex organization, let alone one the size of an airline. This is why researchers and vendors must create engagement models that help win the hearts and minds of organizations.
Airlines 2022 – 02
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airlines.iata.org
24/05/2022 16:25