Amadeus has introduced a new IT solution that enables airlines to maximise revenues across multiple channels.

Published: 19 Oct 2010

Amadeus has introduced a new IT solution that enables airlines to maximise revenues across multiple channels.

Called Active Valuation, the solution works by enabling the application of sophisticated business logic to dynamically adjust the yield (revenue expected) of an airline product, according to the context in which a booking is made, stated the company.

These yield modifiers are used in a seamless manner in order to perform an origin and destination (O&D) calculation. This allows a dynamic segmentation of customers, taking into consideration their characteristics, the point-of-sale used and any connecting flight data, in order to better capture their willingness-to-pay. At the same time, ‘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 that may be applicable. In addition, 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.

A host of major airlines including Lufthansa, Air Baltic, Singapore Airlines, TAM and Etihad have been roped in as ‘Active Valuation’ contracted customers.

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. ‘Revenue Availability’ works by allowing an airline to intelligently optimise its inventory in order to generate maximum return on a booking.