In this video interview Yu Haiyan, Deputy Director of RM Division, Sales Department at China Southern Airlines, shares how the airline adopted PROS Real-Time Dynamic Pricing solution in the cloud, migrated to PROS Origin & Destination RM solution, the challenges the carrier faced before implementing the solutions, and the three key factors making the 25 years of partnership with PROS a success.
Full Transcript
Question: Please present yourself and your role.
Yu Haiyan: My name is Yu Haiyan. You can call me Hana in English. I come from China Southern Airlines. I am currently the Deputy Manager of the Revenue Management division of the sales department. I am in charge of the international flight business of revenue management. I have been engaged in revenue management for 13 years.
Question: Tell us what PROS solutions you are using, and what key initiatives/projects they support.…
Yu Haiyan: I think switching to cloud environment Real-Time Dynamic Pricing (RTDP), the result is mainly related to the efficiency of data response and data storage issues for users. Methods or business rules actually have little impact. However, China Southern Airlines is the first Chinese airline to switch its cloud environment to a domestic cloud. The biggest challenge we faced during the switching process was that PROS RTDP is also converted from a long-term licensed product to a cloud-based software. We are very grateful to the engineering staff of PROS for helping us through continuous adjustments. At present, PROS RTDP-A has been successfully implemented on China Southern Airlines’ domestic cloud. Just last month, we completed the upgrade of RTDP-A. The upgraded functions are more in line with the actual business needs of China Southern Airlines. For example, we need to differentiate the management of code-share flights and we need to retrieve operation/audit logs, which greatly improved our management efficiency.
Question: Explain what major challenges PROS has helped you address.
Yu Haiyan: First it helped us shift from segment management to Origin and Destination (O&D) POS management. This has helped us to quickly and effectively adjust our transfer strategy over the past three years. Our flight passenger load factor has also been at the leading level in the industry. Secondly, our internal management has shifted from fully replying on the fare usage conditions to O&D POS itinerary management. In this process, some changes of our flight analysts and pricing analysts functions have taken place. Flight analysts can take on more functions of screening O&D, while pricing analysts can focus more on market competition and fare professionalism.
Question: Describe the outcomes you have witnessed and why they matter.
Yu Haiyan: What we have seen so far is that the O&D POS level strategy management can be achieved through the PROS O&D system and RTDP, and we can adjust the bid price or RTDP strategies through the flight analysts. To quickly realize this has greatly improved the execution efficiency of our revenue strategy and helped us achieve a continuous leading passenger load factor in the industry.
Question: Share your view on what is behind the success of your partnership with PROS.
Yu Haiyan: First, the professionalism of PROS in revenue management industry. We believe that PROS scientific research in revenue management is at the top level. From P6 to PROS OD, the forecast and optimization model of PROS product is fully implemented in the actual business of China Southern Airlines. This is mainly because there is indeed no model that is more pragmatic and easier to implement than this model. Therefore, in the business process of our company, PROS is a system that is more trusted by the company.
Secondly, the customer support of PROS is very attentive. PROS business experts really keep in close contact with us at all times. No matter what difficulties or questions we encounter, we can get a quick response. Some questions are even sent to the US headquarters for research and finally respond to us as quickly as possible. This is one of the main reasons why we are willing to use this system for all employees. Once again, I would like to express my special thanks to Mr. Yu Bo. He is very concerned about the business of China Southern Airlines and keeps communicating with us at any time.
Thirdly, PROS continues to play a leading role in the industry. This time I came to Outperform and heard about many of PROS new products and business directions. PROS works with experts in the revenue management industry and continues to lead. Allowing us to learn new trends and developments is also one of the main reasons why we are willing to cooperate and communicate with PROS.
Question: Tell us what learnings and ideas you are taking back from Outperform with PROS 2024?
Yu Haiyan: I think it is mainly about the application of General AI in the aviation industry. I think when I go back to China Southern Airlines, we will seriously study the combination of our business models and think about how to better meet the needs of customers through AI as soon as possible in the future. Thank you.