Malaysia Airlines has gone live with willingness-to-pay (WTP) capabilities as part of its overall revenue optimisation strategy. WTP will enable the airline to leverage artificial intelligence (AI) and pricing science, at scale, to improve its demand forecasting and inventory management, as well as to drive efficiency across all aspects of its revenue optimisation programme.
Over the past year, the airline has ramped up its digital transformation, including seeking investments in cutting-edge revenue management technologies and experienced revenue management practitioners. With the latest AI-powered WTP capabilities added, Malaysia Airlines now has greater control over its fares and offers, while leveraging real-time demand forecasting and inventory control.
Group CEO of Malaysia Airlines Berhad, Captain Izham Ismail said, ‘’We are proud of this new milestone achieved over the backdrop of many changes we have made in our revenue management transformation. The path Malaysia Airlines took in disrupting and challenging the norms in traditional airline revenue management is bearing continual results, as proven with our record-breaking RASK 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.”
WTP capabilities also give the airline greater ability to estimate future demand, based on the competitive market landscape and understanding customer sensitivity to pricing. This is critical as the region is poised for what the airline calls “explosive 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,” added Captain Izham.