Artificial intelligence (AI) tools are becoming an integral part of many business processes, and airlines are no exception.
Ticket pricing is an area where the ability of Large Market Models (LMMs) to analyze large data sets, uncover trends that are hard to detect with the naked eye, and make decisions autonomously can be priceless (pun intended).
In particular, AI tools can enhance an airline's dynamic pricing capabilities – its ability to continually change prices to match market conditions, forecast demand at any given time, and improve the speed and granularity of fares offered to potential customers.
One company active in this space is a startup called Fetcherr, which announced in early June 2024 that it had signed deals with two new airlines, WestJet and Viva Aerobus, to use its Generative Pricing Engine (GPE).
As such, the Canadian and Mexican budget carrier joins other users of Fetcherr’s AI-driven pricing tool, including Virgin Atlantic Airways, Azul Brazilian Airlines and Royal Air Maroc.
How does generative pricing based on a mass market model differ from traditional revenue management tools?
“Previously, we priced fares several times a day, and this approach generated significant revenue growth for our airline partners. Now we can price across our network at the time a search query is made. With real-time pricing, the potential for increased revenue is unprecedented,” said Roy Cohen, CEO and co-founder of Fetcherr.
AeroTime had the opportunity to speak with Dr. Uri Yerushalmi, Chief AI Officer and Co-Founder at Fetcherr, to learn more about the technology and how airlines can leverage it.
