In this video from Skift Global Forum East 2022, we hear from Jens Munch, co-founder and CEO of Pace Revenue, on why it’s so hard for travel companies to make the right dynamic pricing decisions and how artificial intelligence can eliminate those problems.
In this video:
- Seizing a $1 trillion opportunity: According to research from Pace Revenue — which was recently acquired by FLYR Labs, a technology company driving commercial optimization for airlines — there is 10 to 20 percent revenue leakage across the entire travel industry due to pricing decisions made with insufficient data. Addressing that leakage adds up to approximately $1 trillion.
- Navigating the complex maze of decisions: How many seats have already been sold, what should the remaining seats cost, how expensive are the distribution channels, and which channels are currently on versus off and more? The factors that impact revenue management are no less challenging than trading on Wall Street. Predicting the future amidst highly dynamic demand requires technology that can optimize decision-making around the clock.
- The need for bold leadership: Remember the old model of Netflix? Mailing physical DVDs was successful for a long time, but the company decided to invest heavily in a streaming future at a time when streaming was an unproven concept. True hospitality innovators will need to make similarly bold decisions, shifting dollars away from legacy systems toward a new model. True digital transformation requires a leadership team committed to the change.
Every business leader talks about artificial intelligence and machine learning, but very few travel companies are actually doing anything to harness the power of these technologies. In fact, a recent Accenture study shows that just 13 percent of travel companies have the maturity today to unlock the full potential of artificial intelligence. As hotels and airlines look for opportunities to jump ahead of the competition, the winners will be the pioneers who leverage a scalable, repeatable, and measurable decision-making engine.
In this video from Skift Global Forum East 2022, we hear from Jens Munch, co-founder and CEO of Pace Revenue, in conversation with Dan Marcec, research editor at SkiftX, on the need for travel companies to take a more sophisticated approach to managing data that can help them make better, faster, and more profitable decisions.