VIKTIO. the artificial intelligence (AI) powered planning, forecasting and ordering platform, has introduced predictive pricing functionality.
It allows airlines to predict sales volumes and profit if retail prices are amended.
The new predictive pricing module requires airlines to provide input relating to factors such as profitability, margin rules and competitors’ ranges.
The system crawls data from websites and competitors. It then applies a demand forecasting algorithm.
It predicts the impact of price changes on sales and overall profitability, so that prices can be optimised.
“If the retail prices change from €29 to €30 or to €31, we look at what would be the sales quantity and then we calculate the profit. With that together, the system, with just a click, calculates the pricing based on the rules,” explained Manuel Huebschmann, VIKTIO’s Chief Solution Advisor, at AmberSky in Riga, Latvia.
Previously, the use of printed menus was a disincentive to frequently changing prices onboard and a barrier to dynamic pricing.
“The moment that you then connect this with, say, an Airfi mobile menu, you could change prices every day or every flight, depending on what you want. You could really optimise your pricing, like a supermarket does today. They can change the prices every week. They have promotions or coupons, and that’s where we want to help the airlines, so they are better able to serve their passengers,” added Michal Wryzykowski, Founder of VIKTIO.
