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Lufthansa Systems and InteRES introduce state-of-the-art airline retailing based on true dynamic pricing.

by Dr. Peter Schöber (Lufthansa Systems) and Alexander v. Bernstorff (InteRES)

A key component of the vision of airline retailing (aka NDC and ONE Order) is the ability for an airline to fully control its offer. In contrast, the traditional distribution model requires third party intermediaries. Airlines seeking to catch up with modern digital retailing must build capabilities far beyond the current setup and truly designed around consumer needs and expectations.

At the core of a state-of-the-art architecture will be an offer- & order-management system and a dynamic price optimisation engine. Filed fares and RBDs will not be required anymore to come up with an offer and over time PNRs, e-tickets and EMDs will become obsolete.

InteRES and Lufthansa Systems share the vision of NDC and ONE Order and provide to airlines an integrated solution that enables unconstraint, simplified retailing. Our transitional approach is fully compatible with any existing PSS and RM system.

The problem is this: In the traditional distribution model, purchase points are provided with fares, not products, and each front-end of such purchase point need business logic for a correct interpretation of the airline content, making it difficult for consumers to exactly understand the nature of a fare and its components. Ancillary services can be handled but utilising an often complex and error-prone process. Rule-based fare families are not curing the problem as they are still constructed based on fare rules and booking classes.

A new perspective is needed where the customer is at the heart of the airline’s intent, and where product engineers can freely design an airline’s product portfolio and a price can be applied on the fly without the need for complex rules.

The InteRES Airline Retail Engine is the only PSS-agnostic offer- & order-management platform available that is native to and fully leverages the vision of NDC and ONE Order. Its pure retailing capabilities are badly needed for airlines to better compete in an environment where fast-changing consumer expectations must be approached with straightforward, uncomplex technology.

The Lufthansa Systems Dynamic Pricing Solution “DPS” is a dynamic spot-price engine that can deliver optimised prices for a flight per compartment on a given route. Contrary to other solutions on the market, DPS will not just alter an existing pre-defined fare. Leveraging the vision of NDC, DPS will use shopping, offer and order data, provided by the Airline Retail Engine, to improve its own algorithms. That’s what we call dynamic pricing!

Both engines combined will unlock the potentials of airline retailing and also enable a stepwise replacement of intricate, costly and error-prone systems and processes.

Contact us to find out more!

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