#ATPCOelevate Gianni Cataldo, Head of R&D, ATPCO
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#ATPCOelevate
Gianni Cataldo, Head of R&D, ATPCO
#ATPCOelevate
What we heard
OptimizedPricing
AdjustedPricing
ContinuousPricing
Static Pricing
Airlines pre-distribute all prices using standard toolsets.
Dual RBD
Capability to increase price points by requiring inventory in 2 different RBD
QuantumPricing
More frequent updates based on automated price determination and upload APIs
DPE PredefinedPricing
DPE determines optimal price from a set of defined (pre-distributed) prices
DPE GeneratedPricing
DPE determines optimal price and adjusts pre-distributed price
Min/MaxPricing
Airlines distribute a min/max range, eliminatingthe need to pre- distribute individual prices
Bid Pricing
Airlines link their Revenue Management systems directlyto price determination
Pre-defined price points with dynamic availability Pre-defined price points with dynamic price adjustments
Fully dynamic price determination
182 26 + ∞ ∞ ∞
Millions + = + = –
N/A = On Demand On Demand On Demand
Price Points available per Itinerary
Number of Prices Filed
Frequency
26
–
= =
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Where we are going
Define Product
AIRLINEPRODUCTS Airline Profile
DistributeProduct
DynamicallyPricedProducts
Offers/OrderStore
ShoppingEngine
ShoppingRequest
StaticOffers
DynamicOffers
ALL OFFERS
Offer/OrderEnrichment
BookingRequest
DPE
Airline
Direct & Sales Channels
#ATPCOelevate
Sebastien Touraine IATA
Marcial Lapp American Airlines
Gianni Cataldo ATPCO
#ATPCOelevate
Sebastien Touraine Head of Dynamic Offers, IATA
Dynamic Offers
Sebastien TouraineIATA FDS TransformationHead - Dynamic Offers Project
Beyond Fares
ATPCO Elevate – Washington October 2019
Airline Retailing Vision towards Offers & OrdersSeller
Airline Systems
Aggregator
Offer Management Order Management
Booking Ticketing
Delivery Fulfilment Accounting
FlightInventoryRevenue Management
FaresAncillary
Dynamic Offers Pricing &
Merchandising
Shop
Offers & Orders
Airline own channelAirline.comATO/CTO
Mobile
Orders
ONEOrder
Offers
NDC APINDC Standard
NDC
Traveler
ONE Order Standard
Dynamic Offers: a common Industry definition is critical
Static flights and ancillaries
Static bundles(e.g. fares families or
branded fares)
Dynamic determination of pre-defined
bundles
Dynamic content
Pre-defined price points with dynamic availability
Pre-defined price points with dynamic price adjustments
Fully dynamic price determination
Typical airline's offers creation
Dynamic Offer creation under IATA AIR vision
Transitional Models
PRO
DUCT
det
erm
inat
ion
PRICE determination
NDC
Application of shopping context &
data science
Ability to
control distrib
uted offers
The next chapter in Revenue Management ?
O&DRevenue
ManagementMerchandisingYield
ManagementDynamic
Offers
• Network optimization
• BidPrice• Dynamic
Availability
• Ancillaries • Fare families
• Continuous Pricing
• Dynamic bundles• Total Offer
Management
• Capacity control• Leg based• Fare rules
segmentation
1980 2000 2020
#ATPCOelevate
Marcial Lapp, Managing Director, Revenue Management Development
American Airlines
Revenue Management – Pricing a Single Product
11
Washington, D.C. à Los Angeles
Los Angeles
Washington, D.C.$200
ORD
DFW
PHX
MIA
CLT
PHL
$180
$160
$120
$120
$200
$160
Scale of the Pricing Problem
12
331 Days
50,000 City Pairs
180M Price Points
10 Itineraries
We already dynamically price in the airline business.
Airlines increase product segmentation
Airline Perspective – Allows us to compete with a myriad of carrier-business-models.
Business Flagship FirstDomestic FirstPremium Economy
Main Cabin ExtraEconomyBasic Economy
Customer Perspective – Provides the customer with the attributes they value in our service.
Scale of the Pricing Problem ctd.
14
331 Days
50,000 City Pairs
115b Priced Seats
10 Itineraries
We include additional products for each of the seats on our aircraft
7 Products
100 seats
Use of Optimization, Fare Automation, APIs for Product Fulfilment
#ATPCOelevate
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