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Revenue Management Goes Dynamic and Personal

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By Henry Canaday | LARA Magazine 

Even low-fare carriers simply must use sophisticated revenue-management tools to thrive in highly competitive and constantly changing markets, argues Aditi Mehta, senior product marketing manager at PROS.

“It makes the revenue analyst’s life easier; he/she can drill down to see demand and how competitors are operating, quickly make decisions based on the forecast, who booked and who will show up and then optimise the seats.”

PROS has been supporting Southwest Airlines for 30 years, supports Frontier Airlines and recently signed up South Korea’s Jeju Air. The application aims to maximise total revenue from each seat with the flexibility to unbundle ancillaries from seats. The aim is to determine how much customers are willing to pay for ancillaries and when they should be offered.

PROS is now doing a pilot study on how it can personalise merchandising of air fares and other services. It will segment offers by channels and decide what should be the offer for each fare class or bundle. Again, there will be an emphasis on, “what to sell, when,” Mehta says.

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