The PROS Hybrid Revenue Management solution forecasts these different demand segments, transforms the demand and fares to adjust for the price-sensitive segments’ willingness to-pay, and calculates bid price controls.
Many threats exist to an airline’s revenue performance – some internal to the airline and others external. A number of labor-intensive and unscientific methods have been used to try and combat these threats – including seat parking, force class closure and artificial demand influences – however, these methods often harm, rather than assist, revenue performance.
There is a scientific, and better, approach to forecasting and optimizing price sensitive demand– hybrid revenue management. Leveraging its leadership in the airline industry, PROS pioneered this approach with a solution that today remains second to none. With hybrid revenue management, hybrid forecasting utilizes availability information to forecast demand that will buy down to lower classes when they are available. In turn, hybrid optimization utilizes these forecasts to first determine the willingness to pay of these passengers, then the optimal authorization levels.