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PROS Announces Completion of
O&D Revenue Management System
Part Four of Five - Spotlighting PROS O&D Network Optimizer August 13, 2003 Houston, Texas – August 13, 2003 — PROS Revenue Management, a world leader in pricing and revenue optimization science and software, and the pioneer and dominant provider of revenue optimization to the travel and transportation industry, today announced the successful completion of its state-of-the-art PROS O&D Revenue Management System. All five distinct components, including PROS Real-Time Dynamic Pricing ("RTDP"), are feature-complete, in production, and integrate into a holistic network solution for major airline customers. To learn more about the PROS O&D Revenue Management System, the new standard of revenue management systems in the industry, register now for the webcast on August 21, 2003, at www.prosrm.com. "The combination of PNR-based forecasting with network optimization generate optimal bid-price controls that provide an incremental revenue lift of 2% or more." stated Amit Khandelwal, Director of Airline Product Management at PROS. "The use of PROS O&D Real-Time Dynamic Pricing Engine positions airlines to adapt their inventory controls to the very dynamic market conditions including influx of low-fare competition, alternate pricing models, and distribution channel differences. It allows integrated controls for selling over e-commerce channels along with traditional distribution channels and provides the infrastructure for customer-centric revenue optimization." The PROS Real-Time Dynamic Pricing Engine is a request optimization engine that provides O&D fare values interactively to the RES System to support seamless availability requests and interactive booking requests. This module stores the O&D fare values as well as the network bid prices to determine O&D-based availability. It provides airlines an alternative to having to build these modules within their RES System to support the O&D based availability and booking process. Additionally it positions the airline to compete in a low-fare dynamic pricing environment more effectively. The significant revenue benefit is derived from accounting for interline, codeshare, distribution channel, and agency distortions in individual availability and booking requests through the Fare Evaluator component within the RTDP. For the first time, airlines have a true PNR-based system that matches
the critical business functions of an airline. PNRs represent the
O&Ds that passengers travel and that airlines price and schedule.
PROS' customers estimate annual incremental revenue of 2% over leg-based
and non-PNR-based systems. The new proprietary scientific innovations
enable large airlines to carry out real-time management of seat inventory
to maximize revenue across their entire network. The system employs
Bayesian forecasting techniques, high-performance and highly scalable
n-tier architecture, an XML web-based thin-customer platform, and seamless
integration with network planning, pricing, and scheduling systems. ### Corporate Communications |
