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Who, what, where, when…why is event visibility important in revenue management for airlines?

Campbell Brown

CEO, PredictHQ

Born in New Zealand and emerging out of Online Republic (recently acquired by Webjet), PredictHQ is addressing how particular events all over the world are impacting business performance. After joining Amadeus Next, a growing travel tech start up ecosystem in Asia Pacific, in December 2015, we began to see the benefit of our data for airlines and revenue management teams.

We are aggregating, standardising and enriching millions of events around the world in one easy-to-use API. This is then integrated within platforms including, but not limited to, revenue management, pricing intelligence, on-demand apps, and OTAs. This growing, intelligent event data helps businesses unlock previously unobtainable improvements to demand & pricing.

The role of PredictHQ

Revenue management is critical to ensure that businesses can yield the best possible returns. Predictive modelling used in revenue management can tell you where, when and how much – however, it often lacks the ‘why’. Why is there a sudden spike in outbound flights from JFK on this specific date? Why are there so many inbound flights into SFO during this week in March? This is where PredictHQ steps in.
Who, what, where, when…why is event visibility important in revenue management for airlines?

Pricing Confidence

If revenue managers are armed with more context around why demand is increasing, they have the confidence to hold their position against competitors on the same route, during the same period.

In an industry where fixed costs are high and margins are sometimes wafer thin, extracting more value from each seat is extremely important. With limited inventory to sell, most of the economic potential is realized by charging the optimal price to each consumer. This is something revenue management systems currently do extremely well but, event intelligence can unlock even more value.

Manual process means missed opportunity: How do you achieve greater event visibility at scale?

Airlines might know about some of the biggest events coming up in major cities, however it is hard to keep track of them all. Currently, the majority of RM teams are manually recording events in a shared spreadsheet – ironically, negating the effectiveness of event visibility as time is wasted on maintaining events rather than managing revenue.

On any given day there are hundreds of thousands of potentially impactful events happening around the world. By grouping events taking place in the same period and same location there is a huge opportunity to leverage them for pricing considerations and uncover new insights on demand that didn’t previously exist.

Start-ups such as PredictHQ are leading the market in intelligent event data. Our journey with Amadeus Next has helped us gain insights into the travel industry, build new customer relationships and gain access to some of the world’s most powerful travel data. You can read about how the local events API has been used within one of our partner’s platforms - Wheelhouse.


Tags

Startups, Events