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A spotlight on 'Total Offer Optimization'

Foreword by Umit Cholak

Vice President, Revenue Optimization Airlines Solutions, Amadeus

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The airline industry is embarking on a major revolution from just selling the customer a “seat” on a flight to selling the customer a set of customized products selected just for them.

This second paper builds upon the recently published Amadeus paper “Spotlight on What Travellers Value”, where we looked at the endless influences that lead consumers to make a purchase with a brand. How do you bring all of these real-time influences together to present the customer with something that is of value to them, right at that very moment?

Today’s shift to merchandizing and personalization is a great opportunity to improve the customer shopping experience, increase loyalty, and improve profitability. Optimizing the product mix and price of offers has benefits for both the customer and the airline.

We are now outlining how the way airlines approach pricing, personalization and revenue management has to change. Amadeus’ vision: total offer optimization.

This paper will explore:

  • The substantial changes coming in revenue management
  • The creation of the offer and consider the challenges of total offer optimization strategy
  • Introduce Amadeus’ vision of total offer optimization

"The development of next-generation pricing and revenue management methods represents a transformational moment for the airline industry. These methods will allow airlines to break free from the many pre-Internet legacy systems and standards that have shaped and constrained current practices."

- Advances in Airline Pricing, Revenue Management and Distribution. PODS Research LLC for ATPCO, P Belobaba, W Brunger M Wittman, October 2017

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