Airnguru Sales

Download as pdf or txt
Download as pdf or txt
You are on page 1of 28

Airline Pricing Intelligence

© 2018 Confidential material


Our Purpose
Airnguru provides the #1 pricing intelligence solution for
the airline industry, helping our customers increase profits
by reducing time-to-market, improving price accuracy and
coverage, and providing competitive information advantage

© 2018 Confidential material


Pains Value Team & Product

© 2018 Confidential material


Limited, obsolete technology, along with dramatic changes in the market
dynamics, are rapidly stealing away airlines’ potential revenues

Slowness
…long time to market in response to competitors’
actions, and information asymmetry, result in
MMUS$ in losses

Inaccuracy

0
…mistakes in fare filings are quickly exploited by
competitors, websites and consumers, causing
MM$/yr in revenue losses

Incompleteness

0
…fare complexity makes it very hard to
exhaustively tackle the long tail of revenue
opportunities

Suboptimality

0
…no existence of systematic support for
optimization of price levels & fare fences implies
MM$/yr in missed revenues opportunities

Airnguru recovers the lost value for airlines by offering increased speed, accuracy, comprehension
and coverage across the whole pricing process…

© 2018 Airnguru Confidential Material


Pains Value Team & Product

© 2018 Confidential material


Airnguru’s value proposition is to exhaustively identify and execute, in near real
time, pricing opportunities that increase the revenue contribution

Our highly scalable, cloud-based, Big Data architecture, computes billions of prices every hour to identify and
quickly act upon opportunities that were invisible or impossible to tackle timely ...till now.

Capture
competitive
opportunities by
Estimated demand segment
incremental
revenue Manage currently
unattended
contribution markets

1% - 4%
to the airline’s
bottom line (*) Reduce time to
market

Eliminate fare filing


errors

Between 10 and 40M US$/yr benefits per 1BUS$/yr in revenues


(*) Actual incremental % benefits will depend on current status of airline pricing practices and performance, adjustment of pricing processes
and policies, load factors and market share of the airline, network configuration, % connecting traffic, etc

© 2018 Airnguru Confidential Material 6


Eliminate Fare filing errors: United Airlines fare filling error

It became a trend in
United Airlines made a Twitter in matters of
fare filing error and minutes, an it sold
charged 170 USD for a thousands of seats
flight between Santiago
and Sydney that usually
costs 1500 USD

With our monitoring tool, our system was able And if this had been published in our Fare Builder
to detect the filing error in real time… tool, this error would have been avoided

© 2018 Airnguru Confidential Material 7


Manage currently unattended markets by increasing productivity: Seamless and
fast process for reactive pricing

Step 1: Easy business rule creation

Step 2: Analyst receives real time alerts by


email and checks them in our tool

Step 3: Analyst selects to which changes to react,


and the system proposes|

fares to implement match

© 2018 Airnguru Confidential Material 8


Reduce Time to Market: Success case in airline YY using Airnguru to improve
response times
Without Airnguru Execution With Airnguru Execution
Suite Suite

After Pricing YY

Execution suite
implementation We expect to take
airline YY has YY’s response time
decrease its Time to to less than 10 hours
Reduction of 30% in
Market by 30% in in 6 more months
Time to Market
less than one month
after implementation

YY

Price execution suite


implementation

© 2018 Airnguru Confidential Material 9


Capture competitive opportunities by demand segment: Airline XX had blindspots
in their current fare management tool

Our tool allows the analysts to XX

identify all aspects of the fare…


XX

XX

In the graph we see a market


where airlines XX had half their XX

competitor’s Price for a special


event that the team could not
identify

Market Segments diluting revenue

© 2018 Airnguru Confidential Material 10


Trends Module

Airnguru Trends module helps revenue management, pricing and commercial teams quickly identify where (OD
markets) the most massive price movements are occurring, who (airlines) are the main actors, and what the
movements/changes are. This top-down view allows teams to quickly understand whether an airline is acting
across markets or just performing minor changes, or when a market is experiencing a price war, etc.

With the help of Trends module pricing teams


will quickly focus their actions on the relevant
issues.

Users will also gain valuable insights


from competitors’ past reactions to
incumbent price actions, learning about
their time-to-market and pricing
strategies.

© 2018 Airnguru Confidential Material


In conclusion…

01 Airnguru helps airlines improve revenues by increasing the speed, accuracy,


comprehension and coverage of the pricing processes...

02 Airnguru identifies in near real time actionable pricing opportunities that can
generate 1% to 4% extra net revenue for the airline

03 Because we only charge a small percentage of the value we generate, Airnguru


is one of the highest return on investment an airline can make

© 2018 Airnguru Confidential Material 12


Walkthrough

© 2016
Confidential material

© 2018 Confidential material


Pains Value Team & Product

© 2018 Confidential material


Airnguru’s computes all possible prices of all fare structures ATPCO every hour

MS Sources
TKT Sources
Big Data
Bkg, FO &
ASK Sources

Iata Taxes

Exchange rates hourly update


All possible passenger
behaviors for all airlines and
The process is repeated every
Data extraction for all markets All information is uploaded to markets are computed to
one hour thanks to the power
from multiple sources Cloud Servers extract a complete view of
of parallel computing
the applicable prices

Real time visibility Automated alerts Overall trends


All markets Competitors’ prices Competitor profile
All competitors Error detection
Any aggregation level

© 2018 Airnguru Confidential Material


We are a team of Revenue Management & Pricing experts, along with Cloud & Big Data
experts, fully dedicated to airline pricing technology

Airnguru’s leadership team

Sergio Mendoza, PhD Daniel Pizarro Javier Jimenez


Cofounder & CEO Cofounder & CTO CCO
Ph.D Theoretical Particle Physics, Stony Brook U M.Sc, Computer Sc Engineer U. Chile MBA LBS
MSc, Electrical Engineer, BSc PUC 11 yrs experience in Big Data for M.Sc, Electrical Eng PUC
15+ yrs experience as Director of RM & Pricing Astronomy, Telco, Retail and Airlines 5+ yrs experience in R&D, RM & Pricing
systems in LATAM Airlines as Senior Manager in LATAM Airlines
10 yrs member PODS-MIT Research Consortium 3 yrs member PODS-MIT Research
Consortium

Advisors

Magnus Oskarsson
Ex CEO & Founder of Pablo Godoy
Calidris: #1 solution Cofounder & Executive
for Revenue Integrity Director Inzpiral
acquired by Sabre in Endeavor Entrepreneur
2010

© 2018 Airnguru Confidential Material


Implementation gantt

© 2016
Confidential material

© 2018 Confidential material


Proposed implementation plan: We can start creating value for your airline in as little as
12 weeks

Phase I Phase II: Software deployment

Commercial agreement & Customization Training


Consulting & pilot testing Parametrization QA + fixes
contract signature development Sessions

4 weeks ~4 weeks ~4 weeks ~4 weeks ~4 weeks

S.C. - checkpoint S.C. - checkpoint

Kick Off Steering Kick Off Go Live!


Phase I Committee Phase II
✓ Approved and signed ✓ Present opportunities found, LHF’s ✓ Approved and signed proposal for phase II
proposal for phase I ✓ Present pilot results ✓ Payment of setup fee
✓ Payment of 40% of phase I ✓ Present plan for implementation of ✓ Assignment of teams
✓ Assignment of teams opportunities ✓ Agreement on kick-off date
✓ Agreement on kick-off date ✓ Present system gap analysis

This timeline is based on our experience, but varies based on airline readiness

© 2018 Airnguru Confidential Material 18


Proposed implementation plan: We can start creating value for your airline in as little as
12 weeks

Commercial agreement & Customization Training


Parametrization QA + fixes
contract signature development Sessions

~4 weeks ~4 weeks ~4 weeks ~4 weeks

S.C. - checkpoint S.C. - checkpoint

Steering Kick Off Go Live!


Committee Phase II
✓ Present opportunities found, ✓ Approved and signed proposal for
LHF’s phase II
✓ Present plan for implementation ✓ Payment of setup fee
✓ Assignment of teams
✓ Agreement on kick-off date

This timeline is based on our experience, but varies based on airline readiness

© 2018 Airnguru Confidential Material 19


Capabilities of Airnguru
compared to other solutions

© 2016
Confidential material

© 2018 Confidential material


Airnguru built the #1 pricing intelligence & price execution solutions for airlines;
Its fast innovation pace(*) will maintain Airnguru at the vanguard
(*) Based on agile development methodologies, with non-disruptive continuous releases, on full cloud based SaaS platform

Airnguru is the only provider offering real time


Real time alerts - + alerts for changes in any fare component, rule
or footnote

Airnguru is the only provider offering full


Demand segment visibility - + demand segment visibility of airline’s price
competitive position

Airnguru is the only provider offering both pre-


Error prevention and approval
workflow
- + publication real-time error prevention checks,
and post-publication error detection

Airnguru offers superior fare management


Fare management capabilities - + capabilities delivering high quality transcriptions
of the fares, and user friendly layouts

With its automated fare mapping algorithm and


its real time alerts, Airnguru is much closer than
Automation - + any other vendor to achieve a robust and
functional automated pricing tool

Airnguru’s Fare Builder module along with the


Coverage - + support of its Price Awareness Suite, help
analysts increase productivity and cover more
markets than with any other solution

© 2018 Airnguru Confidential Material 21


Next steps

© 2016
Confidential material

© 2018 Confidential material


Next steps

Sign NDA
To share information about our product in detail…

Send markets of interest to prepare pilot


.. And give you the opportunity to experiment our tool first
hand

Prepare proposal for piloting phase


… And prepare a full assessment of your current pricing
processes and evaluate where are the bigger areas of
improvement

© 2018 Airnguru Confidential Material 23


Thank you

© 2016
Confidential material

© 2018 Confidential material


Airnguru Price Awareness Suite elevates your airline’s pricing intelligence with
timely insights and superior analytics to diagnose better and act faster

Airnguru Price Awareness Suite


Gain unprecedented insights from your Visualize price trends, understand
competitive position by demand segment competitors’ behaviors and find out
and improve your fare structures and COMPETITIVE where the activity is happening
TRENDS
segmentation ANALYTICS

✓ Understand proactive and reactive pricing


✓ Single snapshot for full OD competitive position
behaviors of competitors
visualization
✓ Identify where (OD markets) the pricing
✓ 2D visualization at demand segment level
action is happening
(outbound vs inbound dates)
✓ Identify the airlines that are generating the
✓ Over- and under-pricing opportunities
actions
highlighted
✓ Downloadable to Excel
✓ All-in fares, with real itinerary based YQ/YR + Q
surcharges
✓ Symmetric comparison among any sets of
competitors in the OD market

Benchmark time to market to improve


Explore the full fare structures and fare your reactive pricing processes and gain
rules, transcribed and graphically interpreted market share
for quick & easy comprehension
✓ Benchmark of reactive pricing
✓ Transcriptions of fare rules and fields PERFOMANCE performance
FARE VISUALIZER
✓ 2D graphical interpretation of fare rules for easy ANALYSIS ✓ Time-to-market by OD market or
comparison grouping, day of week, time of day
✓ YQ/YR + Q surcharges ✓ Best and worst performing markets
✓ Downloadable to Excel ✓ Leader and lagger airlines
✓ Volume vs time-to-market

© 2018 Airnguru Confidential Material


Airnguru Price Execution Suite boosts your airline’s price execution capabilities,
speeding up reactive pricing, reducing fare filing errors and increasing productivity

Airnguru Price Execution Suite

✓ Monitorevery single fare movement, near real time


✓ Highlight
changes and compare with past situation Get immediately alerted of all changes made
✓ Automate real time alerts (GUI and email based) by competitors and prioritize your reactive FARE MONITOR
✓ Automate backlog prioritization
pricing backlog
✓ Set competitive alarms

Streamline your fare creation and ✓ Organize, speed up & control fare publications
✓ Build responses from competitors’ actions
publication process with a robust pricing ✓ Manage teams and filing status
PRICING workflow to improve publication ✓ Automatically check filing consistency before publication
WORKFLOW performance, reduce time to market and ✓ Automatically check filing consistency after publication
✓ Measure
prevent fare filing errors ✓ Control

✓ Parametric output file


Improve accuracy of your revenue RIFF
✓ YQ/YR + Q surcharges computed on real itineraries management system outputs by feeding CUSTOMIZED
✓ Private fares
in more accurate prices RM INPUT FILE

© 2018 Airnguru Confidential Material


Continued innovation is vital for our customers’ success and profitability

Price Optimization (ticket)


‣ Competitors’ profiling
Our roadmap… 2019 ‣

AB Testing
Elasticity modeling
‣ What if Scenarios

Pricing Intelligence
2017 Ancillary Optimization (+ticket)
✓ Fare and price monitoring in ‣ Fare families optimization
real time
‣ Bundling /basket optimization
✓ Demand segment visibility
‣ Menu based optimization
✓ Historic trends
✓ Competitive position
✓ RM Input file 2020
✓ Fule surcharge quotation

Price Execution
✓ Pricing workflow ✓ Already in production
✓ Real time alerts ★ Work in progress
✓ Prioritization ‣ In roadmap
✓ Fare simulator and error prevention
✓ All in price quotation
✓ Automated publication

2018
★ Ancillary / Branded Fares / NDC capabilities

Data Integration Big data Automation Machine learning Dynamic pricing Basket Optimization
© 2018 Airnguru Confidential Material
Videos

© Airnguru Material Confidencial

You might also like