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- Dynamic Pricing: Cirrus Revenue Operating System
FLYR’s presentation at the 2021 IATA Dynamic Offers forum spotlighted how the combination of ancillary revenue management with flight revenue management in one integrated system can more accurately forecast demand and automatically set revenue-optimal fares.
Speakers: Cole Wrightson, Chief Architect; Niels Colemont, Founder & CEO Faredirect
Date Presented: September 22, 2021
00:00 – Introduction
“Dynamic Pricing: Cirrus Revenue Operating System” is presented by Cole Wrightson and Niels Colemont of FLYR Labs.
00:24 – Who is FLYR
FLYR Labs is the pioneer of The Revenue Operating System® for airlines and transportation leaders. Its cloud-based software solution leverages deep learning technology, a cutting-edge form of AI, that captures and contextually analyzes data for ultra-accurate forecasting and decision-making.
01:00 – Why We Do Things Dynamically
While legacy technology leaves gaps in data, our AI-powered technology uses contextual data to provide ultra-accurate forecasting and insights for airlines. Our dynamic pricing model considers unique and evolving customer demand, even non-bookings, to learn and predict the most likely outcome.
03:28 – Continuous Core Seat Pricing
Cirrus leverages deep learning technology to learn the optimal current selling fare for any itinerary in the forward schedule. Continuous pricing serves as the foundation for total revenue optimization and dynamic offers.
05:33 – Dynamic Ancillary Pricing
Ancillary revenue is a key driver of profit for airlines. Through machine learning optimization we enable airlines to customize, personalize, and revenue optimize the offers of pre-flight ancillaries.
07:24 – Total Revenue Optimization
In order to achieve total revenue optimization, we evaluate all revenue maximization opportunities. Estimations of flights, ancillaries, and total revenue forecasting influence each other, with data constantly shared across systems. The performance outcome of these three buckets determines total revenue optimization.
08:24 – Coming Soon
FLYR is optimizing the building blocks of fare family pricing. This will enable the Cirrus system to dynamically set the price of the lowest fare family and the separate ancillaries. Additionally, dynamic bundling will accurately predict the travel motif parameters, determining the willingness to pay for the entire offer of the airline by product.
The International Air Transport Association (IATA) is the trade association for the world’s airlines, representing more than 82% of total air traffic. IATA supports many areas of aviation activity and helps formulate industry policy on critical aviation issues.
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