Revenue Management Advantage Product Guide

Market Situation

Now, more than ever, airlines are faced with unrelenting complexity. Government restrictions, extreme fluctuations in demand, and highly competitive markets make it difficult for revenue management leaders to be confident in their business decisions to drive revenue and operational efficiency.

In order to solve for this complexity, airlines are looking to proven, dependable technology that allows revenue management teams to react quickly to disruptive market events like pandemics, market closers, competition, and changes in demand.

Lately industry dynamics have forced airlines to do more with fewer resources than before, leading airlines to eliminate redundancies and dependencies on inflexible systems while driving collaboration between functional areas like distribution, sales, digital, and marketing. Additionally, with so many complicated inputs such as capacity, scheduling, and competitor movements, airlines need a robust revenue management system to keep up.

With the right technology, backed by repeated time to value, proven science, and best-in-class UX, revenue management leaders can reduce costs while driving revenue across the business, increasing operations efficiency and productivity.

Business Challenges

The Solution

PROS Revenue Management is the most comprehensive industry-leading revenue management solution for the airline industry.

RM Advantage, an edition of PROS Revenue Management, enables network carriers to maximize value across their entire network for full origin and destination. Powered by algorithmic forecasting and network optimization, revenue management leaders can leverage proven technology to drive revenue, gain efficiencies, and empower analysts across the organization. Additionally, RM Advantage lays the groundwork for revenue-optimal offers that compromise both the seat and ancillaries while taking into consideration distribution channels and strategies.

RM Advantage is built on a robust set of capabilities including streamlined workflows and user experience developed on industry best practices. The workflows help to drive efficiencies and allow analysts to quickly drill down on their markets, identify solutions, and then focus on other revenue-driving initiatives. The foundation of RM Advantage is based on proprietary Bayesian forecasting and optimization methodology, allowing revenue managers confidence in the system to drive value. Furthermore, our approach to willingness-to-pay is the first to market for class-free revenue management and dynamic pricing based on science.

Combined with PROS Real-Time Dynamic Pricing, airlines can control and deliver accurate, real-time availability across channels and partners with synchronized rules, fares, and data. PROS Real-Time Dynamic Pricing allows airlines to manage increasing search volumes and better share availability data with partners, while testing and applying strategies. Combined with PROS Revenue Management, airline revenue management leaders can be confident in their ability to scale and reduce distribution costs.

Benefits of PROS RM Advantage and Real-Time Dynamic Pricing

How PROS RM Advantage Works: Key Capabilities for Maximized Revenue and Productivity

Gain Confidence Through Proven Forecasting and Network Optimization

Even during extreme volatility, revenue management leaders need the right set of tools to determine the right price, for the right customer, at the right time. PROS RM Advantage is built on proprietary Bayesian forecasting methodology developed specifically for forecasting passenger demand. What differentiates our approach to forecasting is the ability to establish a correlation between different parts of the booking curve, using booking data from flights yet to depart, weighing recent observations stronger, and automatically capturing seasonality.

PROS RM Advantage also determines the optimal inventory controls used by the airline’s inventory system with proven optimization technology that determines the fare mix to maximize revenue lift on every departure. RM Advantage generates revenue-optimal bid price controls and leg/segment allocations along with decision support to make the best choices for the business,

Predict Price Sensitivity With Willingness-to-Pay

PROS RM Advantage gives airlines the power of willingness-to-pay forecasting and optimization to automatically adjust the available fare to account for potential buy-down behavior. The solution focuses on using the value of passengers who have booked rather than using the class code of the booking. It is a critical first step to continuous pricing and dynamic pricing – a true differentiator for airlines to stay innovative and ahead in competitive environments.

Gain Agility With Price Centric Approach to Fare Valuation

In volatile pricing environments, revenue management teams need to file fare changes frequently. Fare structures also change quickly due to competition and market forces. By utilizing the most up-to-date pricing data, PROS RM Advantage can quickly react and adjust to changes. This greatly reduces the need for influence and manual intervention – meaning more accurate fares and greater revenues.

Drive Productivity and Efficiency Gains With Streamlined Workflows

Every day, analysts are challenged to make critical business decisions based on a ton of data and information sources. It’s extremely vital that RM analysts have easy-to-understand workflows and screens that enable them to quickly drill down on their markets, interpret data, and take action. PROS RM Advantage is built on the concept of “manage by exception” meaning the system generates controls using industry-leading science, and analysts can monitor and adjust markets as needed. The workflows are designed to be user-centric and enable analysts to complete tasks quickly, reducing the time spent in the system itself by up to 50%. This reduction drives up productivity and allows analysts to focus on other revenue-driving activities.

Break Away From Rigid Pricing Constraints With True Dynamic Pricing

With PROS RM Advantage, airlines can begin to break away from class-based pricing and start to lay the foundation for dynamic pricing. This allows airlines to adjust a price in real-time in response to a one-time request for a passenger based on segmentation or passenger attributes. We bring dynamic pricing to life for airlines by providing a step-by-step approach grounded in science and a unified platform that connects critical pieces of revenue management, offer creation, and distribution.

Power Your Revenue Management with Real-Time Dynamic Pricing

PROS Revenue Management drives even greater value for an airline when combined with PROS Real-Time Dynamic Pricing. PROS Real-Time Dynamic Pricing allows airlines to control and deliver accurate, flexible real-time offers across all the channels they distribute in. Airlines can better manage increasing search volumes and rising look-to-book ratios. Additionally, with PROS Real-Time Dynamic Pricing, revenue management teams can better control revenue leaks, eliminate dependencies on real-time inventory data feeds, and reduce sell discrepancies, and all resulting in greater revenue and efficiency for the airline.

Designed to dynamically manage availability, airlines can also increase bookability with accurate availability from and to partners, including JV or interline relationships. PROS Real-Time Dynamic Pricing includes many commercial strategies to customize availability based on aspects of passenger, itinerary, and flight conditions.

Using PROS Real-Time Dynamic Pricing, the Customer’s rules and strategies are kept confidential and no longer need to be shared with distribution partners. PROS Real-Time Dynamic Pricing enables the Customer to have more control of the distribution both from business and technological aspects.

STRATEGIC AVAILABILITY

COMPETITIVE STRATEGIES

REVENUE PROTECTION

SCALABILITY AND ANALYTICS

REAL-TIME PARTNER AVAILABILITY

• Real-time evaluation of the availability and/or sell request by the operating airline on a free-flow codeshare marketing flight

What Makes PROS Revenue Management Different

AI-based forecasting using Bayesian hierarchal forecasting techniques that learns quickly and adapts to rapidly changing environment.

Level of forecasting detail based on true PNR-based origin and destination forecast, bookings, and cancellations forecast and a blended forecast to capture trends that would be missed in a net forecast.

Comprehensive user-influence features at the O&D, point-of-sale, path, class departure date.

Fare valuation using pricing and revenue accounting data to produce forward-looking passenger value estimates by O&D, booking class, point-of-sale, departure, and selling date ranges.

An RM system with a user-centric design and intuitive navigation to drive maximized adoption and utilization among RM users. The UI/UX is continuously improved with the help of surveys, usability testing, and customer conversations.

Business Outcomes You Can Expect

What makes PROS Revenue Management Unique:
1. #1 Ranked in global RM market share
2. 30% Improvement in process efficiencies
3. 2-3% Average revenue lift
4. >25% Increase in forecasting accuracy

Revenue Management Editions

PROS Revenue Management maximizes revenue across every market, backed by proven, industry-leading science and delivering a rich set of capabilities and automated workflows. Whether you are a low-cost carrier looking to automate processes or an airline wanting to make business decisions based on AI and machine learning, PROS Revenue Management is available in a variety of editions based on your specific needs:

AVAILABLE INTEGRATIONS

PROS CLOUD