Cyprus Airways this week inked a contract with FLYR to implement the California-based technology firm’s artificial intelligence (AI)-driven airline revenue management platform.
“Using FLYR’s AI-based solution, which feeds all available historical, competitive and ongoing data into deep learning algorithms to determine the optimal pricing strategy, Cyprus Airways will be able to dynamically optimize revenue 24/7,” Matt Brown, FLYR’s VP for growth, wrote in a post on the company’s website.
The system will allow the airline to “optimize revenue strategies across all flights and products, from fares to ancillary offerings,” according to a FLYR statement.
Cyprus Airways operates flights to Europe and the Middle East from its base at Larnaca International Airport.
Last year, the carrier said it would move to a “hybrid business model” that will see unbundled fares and ancillary revenue playing a central role going forward. “The airline has embarked on a digital transformation exercise to maximize its ancillary revenue,” FLYR noted.
The FLYR platform to be used by Cyprus Airways will also provide ancillary revenue management “to offer services such as seat selection and luggage purchases to customers based on their willingness to pay, in addition to fare family pricing that makes purchasing a bundle attractive to travelers,” FLYR said
In a video presentation on the revenue management solution, FLYR CEO Alex Mans noted the company is “already managing billions of dollars of revenue at major airlines across the globe.” He said data is often “an under-appreciated afterthought” for airlines setting flight ticket price points.
FLYR’s revenue management system examines “dozens of internal and external commercial data” sources, including historical data, to provide “ultra-confident forecasts” to an airline’s management, Mans added.
Jon Ham, head of analysis for FLYR, said the company’s revenue platform is designed to “fill gaps in legacy systems … FLYR’s deep-learning solution is more data efficient,” leading to “more impactful, strategic revenue decisions.”
Brown said that airlines using the platform are reporting a 7% revenue uptick and a 4 percentage point lift in passenger load factor within six months of implementation. It takes 12 weeks to implement FLYR’s revenue management system at an airline.
The platform will enable Cyprus Airways to “better predict customer demand and behaviors, allowing the airline to dynamically optimize revenue and maintain the most competitive position in the market,” FLYR stated.
Cyprus Airways plans to operate a fleet of four Airbus A320ceo aircraft this year, with the aim of growing the fleet to up to 11 aircraft by 2026.
The value of the Cyprus Airways-FLYR contract has not been disclosed.
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