AI Driven Dynamic Pricing and Revenue Management Workflow

Dynamic Pricing and Revenue Management

1. Data Collection

1.1 Sources of Data

• Flight schedules and availability
• Historical pricing data
• Passenger demand forecasts
• Competitor pricing analysis
• Seasonal trends and events

1.2 Tools for Data Collection

• Web scraping tools for competitor analysis
• APIs for real-time flight information
• Data lakes for storing historical data

2. Data Analysis

2.1 AI-Driven Analytics

• Utilization of machine learning algorithms to identify pricing patterns
• Predictive analytics to forecast demand fluctuations

2.2 Tools for Data Analysis

• Google Cloud AI for machine learning models
• Tableau for data visualization
• IBM Watson for advanced analytics

3. Dynamic Pricing Strategy Development

3.1 Pricing Algorithms

• Implementation of AI algorithms to adjust prices based on demand and supply
• Utilization of real-time data to optimize pricing dynamically

3.2 Tools for Pricing Strategy

• Dynamic pricing software (e.g., PROS, Zilliant)
• Revenue management systems (e.g., Sabre, Amadeus)

4. Implementation of Pricing Changes

4.1 Automated Pricing Adjustments

• Integration of AI systems with booking platforms for real-time pricing updates
• Utilization of APIs to communicate pricing changes across all sales channels

4.2 Tools for Implementation

• Channel management tools (e.g., SiteMinder, Cloudbeds)
• Booking engine integrations

5. Monitoring and Optimization

5.1 Performance Tracking

• Continuous monitoring of pricing effectiveness and revenue generation
• Adjustment of algorithms based on performance data

5.2 Tools for Monitoring

• Google Analytics for web traffic and conversion tracking
• Custom dashboards for real-time performance metrics

6. Reporting and Feedback Loop

6.1 Data-Driven Reporting

• Regular reporting on pricing strategies and revenue outcomes
• Gathering feedback from stakeholders for continuous improvement

6.2 Tools for Reporting

• Business intelligence tools (e.g., Power BI, Looker)
• Feedback management systems (e.g., SurveyMonkey, Qualtrics)