Amadeus Dynamic Pricing

Altéa Revenue Availability with Active Valuation

Amadeus Dynamic Pricing is a breakthrough solution that can help airlines boost their bottom line by targeting untapped revenue potential. Whereas revenue management defines the optimal strategy to maximise revenue across the life of a flight, Amadeus Dynamic Pricing determines the optimal pricing decision associated to each shopping session and adjusts the end price accordingly.
Based on real-time shopping session information (e.g. trip context), market information (e.g. competitor offers), and the airline's revenue management and pricing strategy (e.g. product consistency), Amadeus Dynamic Pricing is modelling customer behaviour and decision, considering his willingness to pay, to calculate the optimum price and instantly adjusts the available fares and taxes. Amadeus Dynamic Pricing fully complements the airline's revenue management solution.
Key benefits
  • Revenue generation: Increase market share by capturing demand from customers with a low willingness to pay. Maximise booking opportunities in each shopping session.
  • Revenue optimisation: Maximise the revenue from a shopping session by adjusting the price, either to increase the value of the sale or the sale opportunity, based on the customer's willingness to pay. Airlines can regain full control of product prices and be free from discreet price points induced by fare filing.
  • Brand Identity: Ensure consistency with the airline’s product offering and competitive positioning.
Main features
  • Customer Segmentation Model: determines the customer’s segment (leisure or business), based on the contextual information included in the customer’s shopping request, so as to offer the right product at the optimal price.
  • Competitor Data: provides detailed and current competitor information on the travel solutions offered by the airline and its competitors, in order to better monitor product competitiveness and adjust the airline's strategy.
  • Customer Choice Modelling: estimates the customer purchase probability based on itinerary categorisation, travel solution value and ranking.
  • Price Optimisation: determines the airline's optimal price, based on segmentation, competition, the customer choice modelling and the airline strategy.
  • Dynamic Pricing Cockpit: monitors pricing quality, dynamic pricing performance and the airline's competitive positioning. The solution also audits dynamic pricing and performs retrospective analysis.