Amadeus Dynamic Pricing

Amadeus Dynamic Pricing

Amadeus Dynamic Pricing is a breakthrough solution that can help boost your bottom line by targeting untapped revenue. It calculates the price that will achieve the greatest profit from each shopping session.
 
How does it work? Amadeus Dynamic Pricing analyzes flights offers which customers have previously seen and bought. It uses this information to model future shopping behavior and calculate passengers’ willingness to pay for a flight.
 
This data is combined with revenue management considerations and your pricing strategy, to calculate the optimum price for each shopping session.
 
Amadeus Dynamic Pricing then adjusts available fares and distributes these to all your distribution channels.
Key benefits
  • Generate more revenue: capture demand from price-sensitive customers by displaying fares they will be willing to pay.
  • Protect your revenues: avoid the spiral down effect. Amadeus Dynamic Pricing will determine fares which are acceptable to passengers based on market demand and the value they attach to your product.
  • Take control of pricing: set prices which reflect your product offering and competitive positioning. Regain full control of your fares by moving away from price points established by fare filing.
Main features
  • Customer choice modelling: estimates what has influenced customer segment’s past travel decisions. This model is then applied in real-time to determine how your price is likely to affect each customer’s purchasing decision.
  • Dedicated price optimization: real-time information is added to the value of your seat capacity, as determined by revenue management. The optimal price you can charge for a fare is then calculated depending on how sensitive your customers are to price, and whether you have excess or low seat capacity.
  • Dynamic Pricing Cockpit: monitors pricing quality, dynamic pricing performance and your competitive positioning. It also audits dynamic pricing recommendations and performs retrospective analysis.
Resources