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- Southwest Airlines upgrades revenue management with Amadeus
Southwest Airlines upgrades revenue management with Amadeus
Amadeus Network Revenue Management solution selected by Southwest Airlines expands the companies’ long-term, strategic partnership
The role of technology in the aviation industry continues to become more prevalent as major airlines further modernize their systems to deliver improved retailing. Revenue management is critical to all types of businesses, and for airlines, revenue management is in the process of advancing by leaps and bounds thanks to artificial intelligence and machine learning.
Southwest Airlines® (NYSE: LUV) has signed a multi-year agreement with Amadeus for itsNetwork Revenue Management (NRM) solution .Kambr , an Amadeus company acquired in 2022 that specializes in providing revenue management solutions and advisory for airlines, has been a key contributor to this agreement with its airline revenue management expertise, consulting, and workflow best practices. The new revenue management system is designed to enable Southwest to better anticipate and deliver on customer demand to better maximize revenues.
Amadeus’s solution adapts machine learning to the revenue management discipline to efficiently produce forecasts and gain valuable insights of passenger demand and fare elasticity.
Southwest adds Amadeus NRM to theAmadeus Altéa Passenger Service System (PSS) , which includes reservations, inventory management and departure control. As part of the broader platform, Amadeus NRM is designed to enable Southwest to use data from across its operations to improve its revenue management capabilities. The carrier started a journey toward better revenue optimization with its use of theAmadeus Sky suite , which helps optimize network planning and flight scheduling. With the addition of Amadeus NRM, Southwest is expected to further benefit from synergies of utilizing both solutions.
“We directly observed revenue uplift from the Network Revenue Management product through an extensive multi-year production pilot. Following these results, we are excited to announce the selection of Amadeus as our next generation revenue management system provider,” said Ryan Green, Executive Vice President and Chief Commercial Officer, Southwest Airlines. “We have completed the full cutover to NRM three months earlier than our original plan thanks to the strong partnership between the Southwest and Amadeus Revenue Management teams. We look forward to continuing this partnership for years to come, working together to innovate in the revenue management space.”
“This is an exciting time for Amadeus and Southwest given the best-in-class nature of this solution and of the combined talent of our teams to achieve Southwest’s vision for growth,” said Rajiv Rajian, Executive Vice President and Chief Commercial Officer, Americas, Amadeus. “More broadly, the sophistication of this revenue management solution is a great example of the strength of innovation we are delivering to move the entire industry forward in modern retailing.”
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