Amadeus has launched Active Valuation— a new IT solution that enables airlines to maximize revenues across multiple channels. Major airlines, including Lufthansa, Air Baltic, Singapore Airlines, TAM and Etihad, were announced as Active Valuation contracted customers.
Active Valuation enables airlines to adjust the yield (revenue expected) of an airline product, according to the context in which a booking is made. These yield modifiers can perform an origin and destination (O&D) calculation that allows a dynamic segmentation of customers. This can include taking into consideration their characteristics, the point-of-sale used and any connecting flight data, in order to better capture their willingness-to-pay, Amadeus says.
Active Valuation can also be used to incorporate cost considerations into the availability decision process. For example, costs related to the sales channel or to any fuel surcharges may be applicable. This allows the airline to consider the indirect contribution of a given customer, such as loyalty, and the contribution to the network by looking at return trip criteria.
The new solution is designed to complement Amadeus’ existing Revenue Availability solution which has already been implemented by more than 10 airlines worldwide including Air France-KLM, Lufthansa and Austrian Airlines.
Both the Revenue Availability and Active Valuation solutions are fully integrated with Amadeus’s Altéa customer management suite, enabling users to design and execute business logic from within the standard Altéa Inventory interface. The solution can also be easily integrated with existing revenue management systems, Amadeus reports.