Insights

Commercial Autonomy: The Roadmap to Modern Airline Retailing

Table of Contents


Watch this video with Surain Adyanthaya, President of Travel at PROS, to learn why commercial autonomy is the roadmap to modern airline retailing. 

Video Highlights:

00:18 Overcoming Legacy Systems with Modular AI-Native Platforms

Airlines must embrace modern airline retailing through Offers and Orders. This transition is expected to create an additional $7 per traveler in revenue. The shift to AI-native platforms is pivotal in overcoming monolithic legacy systems that hinder airline retail transformation.

Airlines need to focus on commercial autonomy, controlling their product catalog and inventory, ensuring the ability to create and fulfill offers efficiently. A significant part of this transformation is the adoption of technologies that enable airline Offer Optimization, Offer Creation, Offer Marketing, and Next-Generation Portfolio and Order Management.

15:37 Harnessing AI for Dynamic Pricing 

The integration of AI is essential in creating personalized and transactable offers, that are also revenue-optimal for airlines. It revolutionizes traditional revenue management techniques, moving beyond traditional booking classes and static pricing models. AI enables airline dynamic pricing innovation through concepts like continuous pricing and request-specific pricing, that maximize revenue from the right-to-fly (seat). 

19:44 Growing Ancillary Revenue with AI 

Emphasizing ancillary revenue is crucial for airline profitability. Leveraging AI for ancillary revenue optimization unlocks untapped revenue potential. airBaltic’s implementation of PROS Dynamic Ancillary Pricing resulted in a 6% increase in ancillary revenue per passenger by tailoring seat assignment pricing to travelers’ willingness-to-pay in real-time. 

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