Each day, an airline transports tens of thousands of passengers on hundreds of flights, often requiring multiple connections. The airline must consider potentially hundreds of variables to price each journey, including demand, season, time of day, current events, global markets, and competitor airline activity. Generative AI-powered market models are emerging as a means of handling these complex tasks in real-time by analyzing high-resolution numerical data and simulating different market environments to make dynamic commercial decisions such as pricing, inventory, or revenue management.
Dominic Kennedy, senior vice president of revenue management, sales, and e-commerce at Virgin Atlantic, states that the market model his team is using helps them make better, faster, more granular commercial decisions by considering a plethora of inputs in real-time, including demand, capacity, booking information, competitor positioning, and market conditions. This AI-driven approach allows for sophisticated decision-making based on various factors influencing demand manifestation.