Yana’s profit optimization module (which we call “YieldBoost”) drives incremental profit by:
A critical objective of Volantio’s machine learning platform is to understand the key drivers of customer flexibility. What motivates a passenger to accept an offer? How can this be done in the most cost efficient manner?
Data from Volantio’s Yana platform (Figure 1) shows that a clear, and obvious, relationship exists between compensation amounts and acceptance rates - as compensation increases so too does the rate of acceptance.
The Yana platform dynamically re-accomodates passengers from targeted flights (flights that may be oversold, selling ahead of the booking curve, or subject to IROPs, schedule changes, or downgauge) to alternative flights. Yana sends offers with multiple options via mobile communication channels (e.g. SMS). Customers who accept receive a benefit in the form of a voucher for future travel, upgrades, etc.
By understanding the relationship between advance purchase and acceptance rates, airlines may be able to better target offers, reducing passengers contacted
Volantio has been leveraging machine learning techniques to better understand the primary drivers of passengers’ willingness to change their travel plans. In our April update, we discussed how monetary compensation is NOT always the primary driver. You can read more on that story here.
Alaska Airlines is leveraging Volantio’s Yana platform to streamline the process of managing voluntary denied boardings, leading to strong positive feedback from guests and front-line staff.
Monetary compensation is NOT always the primary driver of passengers' willingness to change their travel plans
Since Volantio launched its Yana™ platform in 2017, we have been leveraging machine learning to better understand the primary drivers of passengers’ willingness to change their travel plans, and use these insights to help our partners better guide how they approach passenger reaccommodation for incremental revenue, IROPs, and denied boarding purposes.
Volaris, Mexico's second largest carrier, has leveraged Volantio's Yana platform to improve customer experience and reduce costs during flight delays.
Innovation \ ˌi-nə-ˈvā-shən \ noun : the introduction of something new (e.g. an idea, method, or device).
Over the last 30 years, the airline industry has adapted through consolidation and the popularity of low-cost carriers (LCCs). Simultaneously, the growth of technology in day-to-day society has led to countless new innovations disrupting the status quo around the world. However, despite the changes to the Airline industry and according to an Accenture report from 2016, "Most airlines believe the airline industry lags other industries when it comes to digital innovation".
Imagine if a grocer ran the following advertisement “1 liter cartons of milk on sale, prices starting from $0.15”, with the disclaimer reading "Sale cartons hidden throughout our store. Customer responsible to find them. Cartons may or may not be available. Sale price can change at any time. Prices are not guaranteed until cartons are found and purchased." Customers would revolt, and it’s hard to believe such a grocer would survive for long.
Over the past 10 years airlines have generally focused on giving customers more choice regarding what services they pay for and what services are "extra." In reality, this has meant that things that were once free - e.g. bags, meals, etc... - have now been "unbundled" from the fare. The upside for customers is that fares have remained relatively constant in real terms, while airlines have been able to increase their revenues. The downside is that customers sometimes feel as though they are being nickel and dimed.