- CUSTOMER VALUE - determine the value of customers based on key aspects such as freight density, capacity share, market share, flight share, customer space usage, and network revenue as well as identify the relationship between customer value and prices
- PRICE ELASTICITY – quantify the relationship between price and quantity in terms of price elasticity as well as understand the impact of capacity share, load factor, and market share on price elasticity
- TARGET PRICE – understand the costs of carrying shipments from origin to destination along a route based on aircraft, stops, distance, fuel, and handling and calculating target price based on target profit margins
- PRICING OPTIMIZATION – recommend optimal pricing options by evaluating the impact of available pricing options in terms of revenue considering probability of accepting the price, price elasticity, customer value, market price, and target price
- RATE SHEET PUBLICATION – generate as well as publish prices/rates for various weight breaks for bulk freight as well as ULD rates for unitized freight. Supports rate maintenance and updates.
- DASHBOARD – dashboards on customer and airline performance in terms of revenue, tonnage, and yield relative to other customers and other airlines. Reports on customer value, price elasticity, capacity share, and market share
- Automatically process key data such as air waybill, CASS, capacity share, cost ,and load factor to determine customer value and price points
- Interactively run key models such as customer value and pricing recommendations based on latest data
- Account for price elasticity and probability of customer accepting a price while evaluating recommended pricing options
- Generate key reports on pricing and performance in terms of customer value, capacity share, yield, tonnage, market share, load factor, etc.
- Create rate sheets as well as maintain and update rates
The pricing decision support software will enable airlines to optimally set prices resulting in the following benefits
- Prices that represent the product, market, customer value, and customer behavior
- Enhanced productivity and faster turnaround time to create/update rate sheets
- Consistency and accuracy in setting prices across the network and across analysts
The pricing decision support software is a web based Application, where it exposes a lightweight thin layer that can be launched within a web browser without any software installation on their client machine. The application runs on popular browsers such as IE and Firefox. The software can be locally installed within the carrier’s IT environment or hosted by RTS. The data loader module supports the transfer of data from various external data sources to the software database as well as export data from database to external systems using web services. Data loader has the basic data validation/quarantine/re-processing capabilities.