#ATPCOelevate

Melanie Dezelak, Principal, ATPCO

#ATPCOelevate

Predefined price points with dynamic price adjustments

Industry Overview: Simplified Model for Dynamic Pricing

Dual RBD

Capability to increase price points by requiring inventory in 2 different RBD

QuantumPricing

More frequent updates based on automated price determination and upload APIs

DPE PredefinedPricing

DPE determines optimal price from a set of defined (pre-distributed) prices

DPE GeneratedPricing

DPE determines optimal price and adjusts pre-distributed price

Min/MaxPricing

Airlines distribute a min/max range, eliminatingthe need topre-distribute individual prices

Bid Pricing

Airlines link their Revenue Management systems directlyto price determination

Predefined price points with dynamic availability

Fully dynamic price determination

OptimizedPricing

AdjustedPricing

ContinuousPricing

#ATPCOelevate

Predefined price points with dynamic price adjustments

Industry Overview: Simplified Model for Dynamic Pricing

Dual RBD

Capability to increase price points by requiring inventory in 2 different RBD

QuantumPricing

More frequent updates based on automated price determination and upload APIs

DPE PredefinedPricing

DPE determines optimal price from a set of defined (pre-distributed) prices

DPE GeneratedPricing

DPE determines optimal price and adjusts pre-distributed price

Min/MaxPricing

Airlines distribute a min/max range, eliminatingthe need topre-distribute individual prices

Bid Pricing

Airlines link their Revenue Management systems directlyto price determination

Predefined price points with dynamic availability

Fully dynamic price determination

NEW Dynamic Pricing Engine Implementation Guide

Dual RBD Implementation Guide

Industry Discovery -Be a part of building the future of pricing

OptimizedPricing

AdjustedPricing

ContinuousPricing

#ATPCOelevate

Seller

Aggregator

Airline

ReceiptOffer

Shop Order

OfferManagement

OrderManagement

Reservations

Product Delivery

Revenue Accounting

TicketingAvailability

Products

Prices

Servicing

Schedules

NDC Processing Flow* and Dynamic Pricing Approaches

*Adopted IATA’s NDC processing flow

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Seller

Aggregator

Airline

ReceiptOffer

Shop Order

OfferManagement

OrderManagement

Reservations

Product Delivery

Revenue Accounting

TicketingAvailability

Products

Prices

Servicing

Schedules

NDC Processing Flow* and Dynamic Pricing Approaches

Dynamic Pricinghappens here

*Adopted IATA’s NDC processing flow

#ATPCOelevate

Seller

Aggregator

Airline

ReceiptOffer

Shop Order

OfferManagement

OrderManagement

Reservations

Product Delivery

Revenue Accounting

TicketingAvailability

Products

Prices

Servicing

Schedules

NDC Processing Flow* and Dynamic Pricing Approaches

Utilize and interact with current

infrastructure

Dynamic Pricinghappens here

*Adopted IATA’s NDC processing flow

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Seller

Aggregator

Airline

ReceiptOffer

Shop Order

OfferManagement

OrderManagement

Reservations

Product Delivery

Revenue Accounting

TicketingAvailability

Products

Prices

Servicing

Schedules

*Adopted IATA’s NDC processing flow

NDC Processing Flow* and Dynamic Pricing Approaches

Utilize and interact with current

infrastructure

Dynamic Pricinghappens here

Interoperable• Service across any

channel• Calculate taxes and fees• Recognize and collect

correct revenue• Comply with government

and regulatory requirements

• Support codeshare and interline

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Which approach is right for you?

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Dual RBD Validation5 RBDs (B, M, Q, W and X) can deliver nine price

points by reserving two RBDs (X and W) for secondary validation of the booked RBD

Optimized Pricing: Live

Success Story

AZ implements dynamic pricing in 4 months, driving revenue and giving consumer greater choice

Usage

35 airlines Live7.5+% of fares in ATPCO

database

#ATPCOelevate#ATPCOelevate

Open ItemsLast Seat Availability (within cabin) involving the trigger class

• Status• Discussions are on-going within the industry on resolution• Industry solutions proposed, airline input required

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Getting Started

Set up internal infrastructure

Forecast optimization (with real-time fares)

Talk to ATPCO

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Adjusted Pricing viaDynamic Pricing Engine (DPE)

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Two DPE Solutions

DPE Predefined Price

Predefine and distribute all possible price points

Price is only valid when received from the airline’s DPE

DPE Generated Price

DPE adjusts price at shopping (no predefined price points)

Price is distributed at sale time for downline processing

(e.g., revenue accounting)

Pre-distribute

Post-distribute

What’s Common?

Schema standardsProcessing flowSupport interline

DPE Airline Profile

Concept

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Data Setup

Airline

Fares and related data (as today)

$1000

LON / NYC

Predefined Price (Solution 1)

$800

LON / NYC

DPE Airline Profile

ATPCO

Subscribers

Shopping/Pricing

Change/Refund

Revenue Accounting

Fare Management

Government Filing

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Adjusted Pricing (NDC)

LON / NYCRoundtrip

Customer

LON / NYCRoundtrip

Customer

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Adjusted Pricing (NDC)

LON / NYCRoundtrip

Customer

Airline ProfileAirline

OfferManagementSystem

$1000

LON / NYC

LON / NYCRoundtrip

Customer

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Adjusted Pricing (NDC)

LON / NYCRoundtrip

Customer

Airline ProfileAirline

OfferManagementSystem

$1000

LON / NYC

LON / NYCRoundtrip

Customer

DPEEligible for dynamic pricing

$1000

LON / NYC

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Adjusted Pricing (NDC)

LON / NYCRoundtrip

Customer

Airline ProfileAirline

OfferManagementSystem

$1000

LON / NYC

LON / NYCRoundtrip

Customer

DPEEligible for dynamic pricing

$1000

LON / NYC

$800

LON / NYC

$800*

LON / NYCGenerated Price

Predefined Price

or

Replaces both the fare class code + amount with a pre-distributed fare class code + amount.

Adjusts the amount and there is no change to fare class code.

ATPCO

#ATPCOelevate

$800*

Offers

Adjusted Pricing (NDC)

LON / NYCRoundtrip

Customer

Airline ProfileAirline

OfferManagementSystem

$1000

LON / NYC

LON / NYCRoundtrip

Customer

DPEEligible for dynamic pricing

$1000

LON / NYC

$800

LON / NYC

$800*

LON / NYCGenerated Price

Predefined Price

or

Replaces both the fare class code + amount with a pre-distributed fare class code + amount.

Adjusts the amount and there is no change to fare class code.

ATPCO

AcceptedOffer

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$800*

Offers

Order

Adjusted Pricing (NDC)

LON / NYCRoundtrip

Customer

Airline ProfileAirline

OfferManagementSystem

$1000

LON / NYC

LON / NYCRoundtrip

Customer

DPEEligible for dynamic pricing

$1000

LON / NYC

$800

LON / NYC

$800*

LON / NYCGenerated Price

Predefined Price

or

Replaces both the fare class code + amount with a pre-distributed fare class code + amount.

Adjusts the amount and there is no change to fare class code.

ATPCOTCN DataTicket

number, ID

AcceptedOffer

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$800*

Offers

$800*

LON / NYC

Selected Fareto Customer

Order

Adjusted Pricing (NDC)

LON / NYCRoundtrip

Customer

Airline ProfileAirline

OfferManagementSystem

$1000

LON / NYC

LON / NYCRoundtrip

Customer

DPEEligible for dynamic pricing

$1000

LON / NYC

$800

LON / NYC

$800*

LON / NYCGenerated Price

Predefined Price

or

Replaces both the fare class code + amount with a pre-distributed fare class code + amount.

Adjusts the amount and there is no change to fare class code.

ATPCOTCN DataTicket

number, ID

AcceptedOffer

Generated Price Distribution

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$800*

Offers

$800*

LON / NYC

Selected Fareto Customer

Ticket

Adjusted Pricing (Traditional Distribution)

LON / NYCRoundtrip

Customer

Airline Profile

ExternalShopping/Pricing System

$1000

LON / NYC

LON / NYCRoundtrip

Customer

DPEEligible for dynamic pricing

$1000

LON / NYC

$800

LON / NYC

$800*

LON / NYCGenerated Price

Predefined Price

or

Replaces both the fare class code + amount with a pre-distributed fare class code + amount.

Adjusts the amount and there is no change to fare class code.

ATPCOTCN DataTicket

number, ID

AcceptedOffer

Generated Price Distribution

AirlineGDS

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Predefined Price

Generated Price

All content together - better analytics for internal systems

Works well for structured price points, targeted products, stretch existing capabilities

Increased data maintenance

Uses already built pricing engine to determine price (existing logic)

Works well when need to adjust price to granular level at shopping, unlimited price points

Can be more closely tied to inventory calculations done today

Must build DPE business rules and new functionality

Less transparency

Interoperable and work within existing infrastructureSupport NDC and traditional distribution

Maintain product brand and price integrity

Which DPE solution works for you?

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S U C C E S S

• Both DPE solutions• Sabre, Farelogix, ATPCO, and multiple airlines• Proven processing flow and standards

• Confirmed “plug and play” success• Enable speedy implementation

Learn

Integrate

Launch

PILOTS

SCHEMAS

• Implementation Guide• Data Application Overview and

supporting records (Milestone 2/3)

IMPLEMENTATION PACKAGE

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Implementation Guide

Partner with ATPCO in early exploration

Document strategies and start planning

Pilots

Launch a pilot

Test interline solutions with partners airlines

Already have a solution in play?

Work with ATPCO to identify life cycle impacts, areas of exposure, and risks

Become Part of the Solution

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Optimized Pricing DPE Predefined Price DPE Generated Price

26

Talk to ATPCO about getting started today

Resolve fare compression issues (too many RBDs in

a class)

Increase pricing flexibility for targeted

products by stretching existing functionality

Achieve full contextual pricing flexibility while

maintaining interoperability

#ATPCOelevate