Sabre launches industry first pricing technology to deliver on an end-to-end dynamic pricing strategy
At the Aviation Festival in London, Sabre Corporation (NASDAQ: SABR) launched Sabre AirVision Dynamic Availability and Sabre AirVision Fares Optimizer, two next-generation pricing solutions that uncover new revenue opportunities by enabling airlines to proactively address rapidly changing market conditions in real time. Underscoring the launch announcement, Etihad Airways and Aegean Airlines will be the first Sabre customers to implement the solutions.
“Pricing is one of the most complex issues in the aviation industry, and airlines are under immense pressure to adapt prices in line with constantly changing market conditions,” said Dave Shirk, Sabre president of Travel Solutions. “Success requires pricing and revenue management technology that will not only push boundaries, but truly equip airlines for the next frontier. As part of our commitment to enable the digital airline of the future, our dynamic pricing solutions give airlines the intelligence needed to compete and grow revenue today and well into the future. This type of innovation can only come from close collaboration with leading airlines who help imagine the future alongside Sabre.”
Sabre AirVision Fares Optimizer empowers airlines to strategically adjust their fares based on real-time market data. It recommends pricing structures based on customer segmentation and competitor price checks, and generates fare recommendations by estimating each customer’s potential willingness to pay. Then, for more tactical adjustments, Sabre AirVision Dynamic Availability – a proven big data solution – enables airlines to quickly respond to ever evolving market dynamics. These two solutions, coupled with Sabre’s shopping data and Revenue Optimizer technology, empower airlines with a complete pricing and revenue management offering.
Both industry-first solutions are the result of a long-term innovation partnership with Etihad Airways. “Building solutions using real-world data, scenarios and receiving continuous feedback from the airline are the key ingredients to a successful development,” said Bhaskara Rao Guntreddy, head of solutions and innovation at Etihad Airways. “During initial testing phases, Fares Optimizer and Dynamic Availability have already proven their potential to achieve incremental revenue growth. For example, by using Dynamic Availability, our pricing analysts at Etihad can be more aligned to our business strategy.”
Echoing these sentiments, Roland Jaggi, director of revenue management at Aegean Airlines, added, “We know that partnering with Sabre on Fares Optimizer will continue to build our total revenue optimization strategy. Sabre continues to be Aegean’s preferred technology partner to help us accomplish our pricing and revenue management goals.”
The new solutions are part of a broader strategic decision by Sabre, which announced earlier this year that it would build a new Digital Commercial Platform that delivers end-to-end personalized retailing for airlines. An acceleration of innovation in the SabreSonic passenger service system and AirVision commercial planning products, Fares Optimizer and Dynamic Availability will help airlines achieve total revenue optimization, empowering them to enhance and improve revenue streams and maximize market share.