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Perfect Price and ATPCO—Dynamic Pricing for Ancillaries

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Maximizing revenue from ancillaries is a hot topic across the airline industry. As ticket prices become increasingly competitive and margins thin, airlines are looking for ways to bolster revenue but remain competitive. 

Perfect Price has joined up with ATPCO’s Bridge Labs program to innovate the way ancillaries are priced. As a leader in AI-based dynamic pricing, we at Perfect Price are using our technology to understand the elasticity for individual ancillary products and bundles, and to predict unique demand curves for each segment. This means better availability and more revenue for airlines. 

Recognizing ATPCO’s leadership in prices, we’re working on collecting and normalizing ancillary pricing data, in order to deliver on the promise of accurate and effective ancillary pricing. Ultimately the goal is to add value to airlines, using specific flight info to create microsegments, and predicting the optimal price point for various ancillaries (bags, seats, etc.). 

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The complexity in dynamically pricing ancillaries lies in pinpointing a specific product, let’s say a bag, through a specific set of fare classes, across multiple legs, with several bag types. Every airline has slightly different baggage policies, and customers behave differently on every segment—and even within the same segment by season or day of the week. Using our patented AI-engine, which lies at the core of Perfect Price’s technology, our software sifts through the multitude of data combinations and makes real-time decisions using the most updated data from ATPCO.  

This product could be used to do real-time dynamic pricing for ancillaries, incorporating an airline's own transactional history with ATPCO data to build the most robust model possible. We abstract the data for dynamic pricing purposes. Leveraging this core understanding of demand, the AI can further suggest prices for bundling, driving higher attach rates and increased convenience for travelers. 

Through our new relationship with Bridge Labs and ATPCO, we’re excited to bring our ancillary pricing to airlines across the globe. As part of our participation in this year's Elevate 2019, I will be presenting in the Innovation Showcase, where we’ll be highlighting how our unique platform can drive results for your airline.


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Alexander Shartsis

About Alexander Shartsis

Mr. Shartsis is cofounder and CEO of Perfect Price, an artificial intelligence (AI) company empowering companies to make better decisions about pricing.

He is an entrepreneur and executive with background in business development, sales, product and engineering. Three companies at which he held key early leadership roles were acquired or went public, creating over USD 1 billion in value.