Alaska Airlines is changing the way it prices tickets. The carrier’s transition to ATPCO’s Architect pricing tool allows it to take a more holistic view of pricing strategy rather than focusing on individual fares.
We are taking advantage of the efficiencies Architect offers to unlock the full revenue potential of our network and pricing strategy.– Kirsten Amrine, Managing Director of Revenue Management at Alaska Airlines
Launched in late 2020 with LATAM and Icelandair as the first customers, the Architect platform aims to change the way airlines think about pricing strategy. At the core it changes some of the automation around fare filing processes. But the data considerations extend far beyond that.
“Pricing automation capabilities that ensure the right product is distributed to the right channel at the right price can bring about significant cost savings and revenue gains,” explains Will Linderman, Director of Global Sales at ATPCO. “It is as much art as it is science, and for airlines to make the best strategic decisions they need a solution like Architect. Automation is only effective if the tool is easy to use and has the most up-to-date and complete data.”
At Architect’s launch, then-Chief Commercial Officer Jonathan Savitch explained, “We have the most timely and comprehensive data. With Architect, we now also provide a modern tool to help airlines automate the minutiae and focus on their pricing strategies.” That goal extends to capabilities such as dynamic pricing and retailing, well beyond traditional fare filing.
Ultimately this should mean better yields for the airlines (i.e. higher fares) without pushing too many customers away.
As an airline-owned technology company ATPCO’s product development is heavily influenced by its members. For Architect that means optimizing revenue potential based on the various data inputs its airlines can deliver. The companies note that a recent customer meeting allowed Alaska Airlines and other Architect customers to help plan the product roadmap.
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