Case Study: Top-tier Middle East-based airline achieves 4.7% revenue lift and US $1.5M additional revenue with PROS Hybrid Forecasting

Hybrid Forecasting for Revenue Management in Action

A top-tier, Middle East–based airline was losing high-yield customers as low-cost competitors, restriction-free fares and pricing transparency encouraged business travelers to “buy down” into cheaper seats, leading to over-allocation of low-fare inventory and under-allocation of premium seats.

The carrier implemented PROS’ Hybrid Forecasting (an extension of O&D III) to model yieldable and price-sensitive demand with real-time and historical data, competitive intelligence, segmentation and seasonality, enabling accurate demand forecasts, willingness-to-pay estimation and dynamic pricing. The solution boosted revenue 4.7% in three test markets and generated an additional US$1.5M on six targeted routes, with expected lifts of 1–4% in business markets and 7–10% in leisure markets.