Altéa Revenue Availability with Active Valuation

Altéa Revenue Availability with Active Valuation Sharpen customer differentiation through O&D Logic

Altéa Revenue Availability with Active Valuation overview

Altéa Revenue Availability with Active Valuation enables airlines to maximise revenue across multiple channels by applying sophisticated business rules.

Revenue Availability allows an airline to intelligently optimise its inventory in order to generate maximum return on a booking

Active Valuation, which is an add-on to Revenue Availability, allows dynamic customer segmentation by enabling Revenue Management experts to maximise the application of their knowledge, to better capture the willingness-to-pay of their customers.

Active Valuation is achieved through the use of yield modifiers which are seamlessly integrated with existing availability calculation algorithms. Yield modifiers, that reflect your business policy, are used to tailor the origin and destination (O&D) availability based on specific revenue-related passenger characteristics. Consequently, such business rules will allow you to narrow down the number of price points to the most accurate one.

Active Valuation uses a combination of business rules to evaluate the potential revenue contribution of each passenger, at the time of a booking request.

Main features

Revenue Availability
  • enabling O&D availability calculation, using Airline Yields, Journey Data and Marriage Segment Control
Active Valuation
  • Yield Modifiers enabling dynamic pricing:
    - Point of Sale: to reflect where the request comes from.
    - Trip Characteristics: to identify business travellers versus leisure travellers.
    - Interline Yield Factor: to reflect the split of revenue, depending on the connecting airlines or used for favouring connections with airline partners.
    - Customer Characteristics: to tailor availability based on passenger data, such as his frequent flyer information.
    - Fuel Surcharge: to reflect fuel surcharges in the yield.
    - Competition: to adjust airline's own offering with respect to the competitive offering.
  • Decision Support Tools:
    - Simulation tool: to enable users to simulate expected requests and clearly see the combined effect of different modifiers, identify which modifiers are applied and how they impact the yield value and availability.
    - Rule Usage Statistics tool: to indicate the impact of the yield modifiers and eases the maintenance of the business rules.
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User interface

Active Valuation Simulator

Click to enlarge

This screenshot shows the Simulation results after business rules have been set by the user. The analyst will therefore be able to clearly see the impacts of such business rules on the availability of this specific flight and will decide whether or not to keep or modify such rules.

Availabilty Evolution

Click to enlarge

This screenshot shows the different availabilities of a specific class on different flight dates, taking into account the business rules set by the analyst (pending, committed and no rules).

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Business impact

  • Increase and maximise revenue in complement to Revenue Management System optimisation logic.
  • Customise airline yield and availability based on real-time demand.
  • Benefit from a single platform that sustains quality and a high level of performance.
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Who can use it?

Any airline using Altéa Inventory can use Revenue Availability with Active Valuation.

Revenue Availability with Active Valuation has been designed to be fully scalable to any airline wishing to operate complex network, handling passengers in connection (Origin & Destination flights).

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Implementation

Revenue Availability with Active Valuation is currently available - for enquiries please contact your Amadeus Account Manager.

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Why take it?

Perfect integration with:

  • Altéa Inventory
  • Altéa Revenue Management, improving demand forecasting and revenue optimisation thanks to a perfect synchronisation with Altéa Inventory.
  • Yield Generation and Yield Watcher, offering advanced capacity to calculate precise yields and monitor discrepancies, allowing you to take full advantage of co-ordinated pricing and revenue management.

It also enables airlines to:

  • Increase and optimise your revenues
  • React in real time to customer demand
  • Instantly modify business rules to fine-tune availability
  • Boost satisfaction among higher value passengers
  • Maximise individual analyst productivity
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Customer feedback

We believe that Active Valuation will enable us to define and implement strategies in real time that can be applied dynamically on top of the revenue management controls. Through Active Valuation we will be able to apply decisive segmentation and differentiation strategies. This amplifies the benefits of using our revenue management system optimisation module. As Active Valuation is part of the Altéa Inventory, the accuracy and timely execution of the solution is as reliable as required by the customers / online portals. With this in mind, we hope to not only increase revenues but also help better reflect Lufthansa's business policy with regard to individual bookings.

Günter Friedrich
VP Information Management, Sales and Customer Processes
Lufthansa

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