PROS Willingness-to-Pay (WTP) Forecasting and Optimization Technology Powers the Future of Airline Revenue Management
August 24 2021 - 9:00AM
Business Wire
Malaysia Airlines’ revenue optimization
strategy anchored by latest innovations in revenue management to
deliver right pricing every time
PROS® (NYSE: PRO), a provider of SaaS solutions optimizing
shopping and selling experiences, today highlighted the power of
its willingness-to-pay (WTP) forecasting and optimization
technology with the implementation at Malaysia Airlines. WTP is
available in PROS RM Advantage, an edition of Airline Revenue
Management, that gives airlines access to the latest in technology
and revenue management best practices and workflows. With WTP,
airlines can overcome common buy-down challenges in priceable
demand markets by utilizing the power of artificial intelligence
(AI) and pricing science at scale to improve demand forecasting and
inventory management and to drive efficiency across all aspects of
their revenue optimization programs.
As travel demand continues to increase, airlines are refining
their business strategies that require innovative solutions to
accelerate revenue and to capitalize on a stronger recovery.
Moreover, revenue management teams want greater control over fares
and offers to meet evolving passenger expectations. The optimal
path to achieve this is through leveraging AI-powered capabilities
that deliver real-time demand forecasting and inventory control. By
having the power to price beyond a static price point and in
between two fares, revenue managers can capture much-needed
incremental revenue.
“Malaysia Airlines operates in a highly competitive environment,
where evolving passenger demands and buy-down are real challenges
that we must continually overcome,” said Malaysia Airlines Berhad
Group Chief Executive Officer Captain Izham. “With PROS WTP
capabilities, Malaysia Airlines can deliver a personalized offering
for every passenger, tailored to their needs and ultimately giving
them more choice in offers that they book, while at the same time
enhancing revenue.”
WTP is a method in which demand is forecast as a function of
price to ultimately capture the price sensitivity of customers –
something traditional forecasting methods cannot easily achieve.
PROS WTP forecasting is designed to scientifically predict the
price sensitivity of passenger demand, incorporate that price
sensitivity into an optimization algorithm, and then adjust seat
availability based on the optimal decision. PROS WTP is implemented
using the PROS Bayesian forecast engine, which has an established
track record of success within the airline industry as the model
can continuously learn and update itself while receiving new data
and information.
PROS RM Advantage is part of the PROS Platform for Travel which
connects the critical pieces of revenue management, offer creation,
distribution and digital retailing to reduce inefficiency and
create consistent and revenue optimal offers across all
channels.
“Airlines today are looking for advanced, proven ways to improve
revenue generation,” said PROS President, Travel Benson Yuen.
“Malaysia Airlines’ adoption of willingness-to-pay methodology is a
testament of its focus to undertake transformation by adopting new
revenue management innovations and to drive efficiency across its
revenue optimization program. PROS is proud of its long-standing
partnership with Malaysia Airlines.”
Visit the PROS Platform for Travel page for more information on
PROS Airline Solutions.
About PROS
PROS Holdings, Inc. (NYSE: PRO) is a leading provider of SaaS
solutions that optimize shopping and selling experiences. Built on
the PROS Platform, these intelligent solutions leverage business
AI, intuitive user experiences and process automation to deliver
frictionless, personalized purchasing experiences designed to meet
the real-time demands of today’s B2B and B2C omnichannel shoppers,
regardless of industry. To learn more, visit www.pros.com.
Forward-looking Statements
This press release contains forward-looking statements,
including statements about the functionality and benefits of SaaS
shopping and selling optimization solutions to organizations
generally as well as the functionality and benefits of PROS
software products. The forward-looking statements contained in this
press release are based upon PROS historical experience with
AI-powered solutions and its current expectations of the benefits
of SaaS shopping and selling optimization solutions for
organizations that implement and utilize such software. Factors
that could cause actual results to differ materially from those
described herein include the addressability of an organization’s
SaaS shopping and selling optimization solution needs, the risks
associated with PROS developing and enhancing products with the
functionality necessary to deliver the stated results and the risks
associated with the complex implementation and maintenance of SaaS
shopping and selling optimization solutions such as PROS software
products. Additional information relating to the uncertainty
affecting the PROS business is contained in PROS filings with the
Securities and Exchange Commission. These forward-looking
statements represent PROS expectations as of the date of this press
release. Subsequent events may cause these expectations to change,
and PROS disclaims any obligations to update or alter these
forward-looking statements in the future whether as a result of new
information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20210824005135/en/
Tricia Nugent-Dawal pros@highwirepr.com 914.774.2708
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