FLYR Labs Acquires Newshore to Add Direct Distribution and Retailing Capabilities


Using Advanced AI to Boost Ancillary Revenue

Jan Rezek, Technical Product Owner, Ancillaries: At FLYR we offer a best in class ancillary revenue management system where we also use the deep learning technology where we are enabling the airline to use the advanced forecasting tools to improve ancillary revenue.

Niels Colemont, Head of New Optimization Programs: Ancillary revenue is the revenue that comes from everything outside of the sale of a flight which goes from A to B, so seat selection, baggage, priority boarding, or even hotel bookings and car rentals where the airline has a percentage of revenue. The way airlines are managing ancillary revenue really depends from airline to airline, but what is common is that revenue strategy for flights and the revenue strategy for ancillaries are not completely aligned. One of the reasons for this is that the legacy systems the airlines are using today don’t have this incorporated. That’s specifically what we are working to integrate at FLYR to offer the analyst one system for total revenue management. For our system we offer flight optimization, ancillary optimization, bundle optimization – and moving forward, loyalty, cargo, etc. – and giving the analyst the opportunity to manage total revenue and flights. And our system forecasts as well for this total revenue. So it makes all the specific components interdependable.

Jan: This is something that airlines have been speaking about for years, for decades, about, total revenue management. But actually there is still nobody from other vendors who are able to offer such advanced revenue management tools.

Niels: The airline industry has been talking about innovation for a long time, especially in revenue management, and we’re actually doing it. Other vendors are talking about it. It’s very exciting to be at the forefront of this.

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