Lufthansa Systems has launched its latest offering Dynamic Price Engine (DPE). This tool enables network airlines to improve their position when directly competing with low-cost carriers.

Published: 18 Jun 2009

Lufthansa Systems has launched its latest offering Dynamic Price Engine (DPE). This tool enables network airlines to improve their position when directly competing with low-cost carriers.

TACA is the first airline which has started using DPE.

The airlines can gain significant advantages “through optimal pricing in real-time and by optimising distribution costs”, according to Mario Cruz, revenue management and pricing manager at TACA.

This solution enables TACA to always take the current market situation into account in order to offer the optimal price.

Lufthansa Systems highlighted that network carriers traditionally use a static price concept with strictly defined booking classes, while low-cost carriers work with a simple staggered price model. By deploying DPE airlines can combine both models.

As soon as they arrive, all booking requests are evaluated in real-time on the basis of various criteria, including the point of sale, the requested travel route (Origin & Destination) and the prices of the competitors. Then the system automatically responds to each request using either traditional booking classes or a low-fare model.