“The industry continues to operate on legacy static rule-based methods for computation of offers and prices. As the volume of variably priced offers continues to expand across an increasing volume of channels, the industry can no longer rely on static rule-based methods. We believe the combination of best-in-breed commerce and cognitive technologies will revolutionize the airline retailing capabilities.” - Rob Ranieri, Vice President and Partner, Travel and Transportation, IBM.
Datalex is partnering with IBM to showcase just how transformative these technologies will be for the dynamic pricing and optimization of airline offers. With IBM’s capabilities in cognitive systems, cloud services and data and analytics, coupled with our digital commerce pricing and offer management capabilities, we are anxious to prove the case for a new approach to dynamic pricing and offer optimization.
Ranieri continues: "Travelers are less pleased by their multi-channel digital experiences, which are delivered by way of airline websites, mobile apps and a host of social channels, as they tend to provide generic offers to all passengers regardless of circumstances. A digital commerce engine that can provide dynamic air and ancillary pricing provides the airlines with an opportunity for revenue expansion through optimized offers across all channels and touchpoints.
By adopting a digital strategy that embraces mobile, analytics and cognitive solutions, airlines will have channels that are better coordinated, operate in real-time and can be personalized to the traveler's liking."
At Datalex, we’re running simulations to discover trends, patterns and predictive insights across a diverse set of structured and unstructured profile, schedule, offer and order data for real-time computation of offers. Early results are showing the significant business advantage of cognitive computing over static rule-based methods. The IBM discovery algorithms allow us to create predictive models for optimization of offers through the Datalex Digital Commerce Platform.
There's lots more to come; we're looking forward to sharing more results!
Chief Innovation Officer, Datalex
Excerpts in this article are taken from a recent post on the IBM ‘Think blog’ . Click here to read the full post.