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In today’s business environment - where passengers are increasingly focused on price – airlines have simplified their fare structures such that some or all classes have no differentiation other than price. This new restriction-free pricing challenges traditional revenue management theory, which is based on passenger segmentation by fare class. Navitaire has developed new forecasting and optimization models designed especially for the simplified price model.

SkyPrice, Navitaire’s next generation revenue management (RM) system, simultaneously manages pricing and seat allocation decisions by measuring the relationship between price and demand. By coupling the new price-sensitive forecast and optimization models with the traditional RM solution, Navitaire has developed a hybrid model to address both restriction-free and traditional pricing.

Born out of Navitaire’s in-depth experience with revenue management in the price sensitive environment, SkyPrice is a powerful tool for tactical and strategic pricing and inventory analysis, which positions your airline to move from reacting to shaping market forces. The powerful science included in SkyPrice bolsters performance across all market segments.

Price Sensitivity

  • Models price-demand relationship through use of multiple regression models
  • Models competitive price impacts

Demand Forecast

  • Short-term and long-term forecast models capture the impact of current and historical trends
  • Demand is unconstrained using state-of-the-art statistical methods
  • Tools enable analysts to manage holidays, special events, new markets and changing market influences

Overbooking

  • Probablistic based overbooking
  • No-show forecasts
  • Allow and disallow overbooking of last flight of day
  • Set maximum overbooking levels

Analysis & Decision Support

  • Create custom flight lists and views by defining parameters, column order and sort order
  • Retrieve flights by market, market group or systemwide
  • Flag selected flights for future review
  • Review optimization results at the flight level
  • Supports display of competitor fares provided by third party vendors

Optimization

  • Simultaneously determines the optimal price and authorization structure that maximizes revenue
  • Support for hybrid fare structures with mixture of segmented and un-segmented fares
  • Refine additional optimization constraints/inputs - target load factor, non-decreasing fare policy, fully variable cost and ancillary revenue
  • Leg based optimization

Reporting & Performance Management

  • Standard performance reports
  • Ad hoc reporting functionality
  • Bucket, flight, market and system analysis
  • Tracking of user and AU history
  • Rich graphing and export capabilities
  • Schedule and email reports

Revenue & Inventory Control

  • Override inventory allocations on individual flights within Revenue Worksheet
  • Mass AU accept and override capability
  • Accept recommended AUs, clone AUs, close, or open buckets automatically based on user-defined rules
  • Manage advance purchase restrictions via inventory controls

To learn more about how to take advantage of the latest developments in pricing optimization, download a fact sheet now.