{"id":4238,"date":"2024-07-03T14:47:50","date_gmt":"2024-07-03T14:47:50","guid":{"rendered":"https:\/\/pros.com\/learn\/case-studies-testimonials\/how-airbaltic-driving-seat-revenue-with-ai-powered-dynamic-ancillary-pricing\/"},"modified":"2026-02-18T21:49:25","modified_gmt":"2026-02-18T21:49:25","slug":"how-airbaltic-driving-seat-revenue-with-ai-powered-dynamic-ancillary-pricing","status":"publish","type":"post","link":"https:\/\/pros.com\/learn\/case-studies-testimonials\/how-airbaltic-driving-seat-revenue-with-ai-powered-dynamic-ancillary-pricing\/","title":{"rendered":"How airBaltic is Driving Seat Revenue with AI-Powered Dynamic Ancillary Pricing"},"content":{"rendered":"
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The customer<\/span><\/span><\/h2>\n

airBaltic<\/a> is the leading airline in the Baltics. For 3 decades the airline has been connecting the Baltics with more than 70 destinations in Europe, the Middle East, North Africa, and the Caucasus region, today serving more than 130 routes from 5 bases.<\/span><\/span><\/p>\n

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To support its growth vision airBaltic is investing in innovation across the board: from modern single-type Airbus A220-300 fleet, to the latest technology advancements in eCommerce to drive revenue optimization. The carrier is an avid AI-adopter, consistently integrating various AI capabilities to enhance efficiency and optimize operations.  <\/span><\/span><\/p>\n

Most recently airBaltic was awarded with PROS AI Innovator Award 2024<\/a> for the successful implementation of PROS AI-powered Dynamic Ancillary Pricing (DAP) solution that the airline uses to automate and optimize the pricing of seat assignments. <\/span><\/span><\/strong><\/p>\n

“At airBaltic, we are particularly keen on adopting AI, as we believe that a modern business world without AI is unimaginable.”
<\/strong><\/p>\n\n\n\n<\/colgroup>\n\n\n
\"Eva<\/td>\n\n
Eva Plakane<\/strong>
SVP Revenue Management<\/div>\n
\"airBaltic<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

Challenge<\/h2>\n

For more than a decade airBaltic has been doing airline-led offer creation using PROS Offer Creation and Retailing<\/a> solutions (PROS Shopping and PROS Merchandising). Today, the leading airline in the Baltics is managing their entire fare and ancillary catalog in real-time and customizing offers based on granular customer segmentation.<\/p>\n

Having a robust price differentiation strategy allows the airline to utilize dynamic pricing techniques for their ancillary products and services. airBaltic’s eCommerce team had already seen remarkable results with seat assignment pricing being personalized based on channel and product characteristics. However, pricing remained static and non-differentiated for different passengers, markets, or routes. <\/p>\n

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airBaltic Airbus seat map configuration
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Driven by the success of their merchandising strategy, the airline’s eCommerce team believed that there is still potential to manage seat assignment revenue better and take their pricing strategy to the next level. In addition, these sophisticated pricing business rules also required dedicated manual efforts from the team to create, update, and maintain. <\/p>\n

Three key objectives led airBaltic’s decision to opt in for Artificial Intelligence: <\/h3>\n