PROS
132 Case Studies
A PROS Case Study
A leading Middle East airline was losing revenue to “buydown” as low-cost competitors, restriction-free fares and pricing transparency trained higher-fare passengers to purchase lower-cost options. Traditional, manual demand-management methods left too many low-fare seats and too few high-fare seats, eroding profitability and creating a need for a more scientific pricing approach.
The airline deployed PROS O&D Revenue Management with a Willingness-to-Pay (WTP) module to forecast product- and price-sensitive demand and enable real-time dynamic pricing. In tests on six routes across three key markets it increased revenue by 4.7%—about US$1.5 million—within months by protecting high-yield inventory and shifting bookings toward more profitable fares.
Middle East-based Airline