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SAS completes move of tech staff to Amadeus

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Move designed to help airline counter “buy-down effect”
SAS has completed the migration of its revenue management personnel to Amadeus Altéa Revenue Management Suite, in a strategic agreement between the two companies established in 2013.
Amadeus says that the move of what it calls “SAS’ highly experienced revenue management experts” to the GDS tech firm “lays the foundation for the most accurate and intelligent pricing of airline packages and offers”.
As the airline industry looks to new merchandising methods to boost revenues, such as dynamic pricing, fare families and ancillary sales, it is necessary for them to have suitable revenue management processes in place, the GDS argues.
Revenue management solutions ensure that recommendations are provided on the best price and packaging of airline offers. This means that what Amadeus calls “next-generation revenue management techniques” are critical for airlines seeking competitive advantage from merchandising.
As a response to competition from low-cost carriers and more transparent price-comparison tools, full-service airlines have increasingly adopted flexible fare structures. As customers grow increasingly used to adding services to a basic fare when they book, the older legacy revenue management systems are challenged.
Amadeus says that its Altéa Revenue Management Suite is “specifically designed to overcome this phenomenon, known as the ‘buy-down effect’, which is the single biggest lost revenue opportunity for network airlines today, and to help airlines adequately respond to increased competitive pressure”.
The migration follows a long-term strategic partnership between Amadeus and SAS, signed in 2013, under which a Centre of Competence was established. The agreement saw more than 20 SAS employees, many of them experts in revenue management, join Amadeus “to pave the way for future innovation that can benefit the entire Altéa community”, Amadeus said.
TTG Nordic

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