KUALA LUMPUR: Malaysia Airlines is leveraging on artificial intelligence (AI) and pricing science at scale under its overall revenue optimisation as it prepares for the surge in travel once the pandemic eases.
The national carrier had on Tuesday announced the “go live” of its “willingness-to-pay (WTP)” capabilities.
With the WTP, it is leveraging on AI and pricing to improve its demand forecasting and inventory management as well as drive efficiency across its revenue optimisation programme.
Over the past year, Malaysia Airlines has ramped up its digital transformation journey, including seeking investments in cutting-edge revenue management technology.
The airline said with a highly experienced team of revenue management practitioners and the latest AI-powered WTP capabilities, it now has greater control over its fares and offers, while leveraging real-time demand forecasting and inventory control.
Group CEO of Malaysia Airlines Bhd, Captain Izham Ismail said; “We are proud of this new milestone achieved over the backdrop of many changes we have made in our revenue management transformation.”
“The path Malaysia Airlines took in disrupting and challenging the norms in traditional airline revenue management is bearing continual results, as proven with our record-breaking revenue per available seat-kilometre (RASK) results achieved in 2019, the highest since the establishment of the new company,” he added.
Izham pointed out with the WTP capabilities and in-house solutions, these will ensure that Malaysia Airlines is well-positioned for a market rebound, and has the speed and agility to push towards the next milestone in our digital transformation journey.”
WTP capabilities also give the airline much greater ability to estimate future demand based on the market competitive landscape and understanding customer pricing sensitivity.
“This is critical as the region is poised for explosive travel growth as Covid-19 lockdowns are lifted,” he added.
“To exceed evolving passenger demands, airlines must deliver the right expected price for every customer, every time.
“With our go-live of WTP capabilities, Malaysia Airlines can now deliver a personalised offering for every passenger, tailored to their needs and ultimately giving them more choice in offers that they book, which is a key differentiator in a highly competitive industry,” added Izham.
President of PROS, Travel, Benson Yuen said: “Malaysia Airlines’ proven and impressive trajectory to adopt industry-leading innovation, technology, and revenue management best practice, such as willingness-to-pay, is testament of its focus to be among the best in the industry and to undertake transformation to improve revenue and profitability.”