PETALING JAYA: Malaysia Airlines announced today the “go-live” of Willingness-to-Pay (WTP) capabilities as part of its overall revenue optimisation strategy.
With WTP, the airline can leverage the power of artificial intelligence (AI) and pricing science at scale to improve its demand forecasting and inventory management as well as drive efficiency across all aspects of its revenue optimisation programme.
Over the past year, Malaysia Airlines has ramped up its digital transformation journey, including seeking investments in revenue management technology. With a team of revenue management practitioners and the latest AI-powered WTP capabilities, Malaysia Airlines now has greater control over its fares and offers, while leveraging real-time demand forecasting and inventory control.
Group CEO Captain Izham Ismail said the path Malaysia Airlines took in disrupting and challenging the norms in traditional airline revenue management is bearing continual results, as proven with its record-breaking revenue average seat per kilometre results achieved in 2019, the highest since the establishment of the new company.
“WTP capabilities, along with our other in-house solutions, 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,” he said in a statement today.
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 travel growth as Covid-19 lockdowns are lifted.
“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,” Izham said.