PROS ORIGIN & DESTINATION REVENUE MANAGEMENT III

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1 PROS ORIGIN & DESTINATION REVENUE MANAGEMENT III The most advanced network revenue management solution in the world. Unlock Your Data Unleash Your Sales

2 As you expand your network, the pressure to maximize revenue grows. New routes, new aircraft, new seat configurations, and increased competition require the smartest full origin & destination (O&D) revenue management system. 2

3 MAXIMIZE REVENUE ON EVERY FLIGHT. PROS O&D III is in a class of its own. It s the only solution of its kind, proven to deliver significant incremental revenue benefits over leg/segment solutions and non-pnr-based systems through ground-breaking, PNR-data-driven forecasting and network optimization. It seamlessly integrates with other PROS and non-pros systems, allowing for real-time availability and decision making. And it enables you to determine the right price that maximizes revenue by differentiating availability for passengers based on true value. It all adds up to an O&D revenue management solution that transforms your business to the way customers want to fly. TAKE YOUR PERFORMANCE HIGHER. PROS O&D III is perfect for airlines that operate in: O&D-driven markets where passengers can be segmented on true value and their contribution to the network. Multiple markets where competition is fierce, particularly LCCs that attempt to undercut prices to maximize load factors without any fare restrictions. Markets where there is significant price-sensitive demand, for example leisure passengers who buy down to the lowest available fare class. Markets where there is price-insensitive demand, for example business travelers who will purchase a ticket, regardless of the price. 3

4 SOLVING YOUR BIGGEST HEADACHES. Rely on the most advanced forecast methodology: Smarter forecasting science enables you to capture current market trends and behaviors, such as seasonal demand patterns so you can more accurately predict passenger demand, close the gap on revenue leaks, and identify hidden opportunities to grow margins. PROS O&D III forecasting helps manage holidays, special events, seasonal peaks and lows, schedule changes, and competitor entrances and exists. Move from a leg-based to O&D solution: If your airline has grown to include large O&D traffic and you re relying on a leg-based software system, then you could be leaving money on the table. PROS O&D III optimizes the full network to determine revenue-maximizing controls for connecting and pointof-sale traffic, day in and day out. Manage flights proactively: Are your analysts spending too much time trying to get answers from your software? PROS O&D III s user-defined strategies, alerts, and analytical views enable them to be more efficient and respond to changes faster. They ll be able to maximize revenue by implementing the rules as they see fit in response to market shifts. Eliminate fragmented processes: PROS O&D III integrates forecasting, passenger valuation, optimization and availability processing, data analysis, and management into a single, integrated solution that helps your entire organization work smarter. Synchronize revenue management and sales: Centralize sales and pricing data and align departments across the organization from revenue management to network planning to pricing and sales. Recommend optimal traffic mix by O&D and point-ofsale so your availability is in line with network revenue optimization goals. Ensure real-time availability: The only thing worse than no data is stale data. PROS O&D III provides seamless integration with other products for real- time availability and group revenue management, as well as other systems and processes within your airline, allowing for greater efficiency and data accuracy. 4

5 KNOW MORE. DO MORE. Model unique demand patterns: Quickly and accurately capture emerging trends by region, market, flight, date range, and more, so you know where and when to make pricing changes. Understand your overall network revenue: You ll always know the optimal fare mix between local and connecting demand. Manage every possible situation: PROS data science enables you to overcome challenges, such as overbooking, upgrade/downgrade potential, convertible seats, flexible cabin, and more. Provide sales with availability guidelines: Armed with data, revenue management and sales people can work together to provide optimal availability. Gain quick insights Review network flows and perform detailed flight analysis to improve revenue streams. Make smarter decisions: Manage availability with ease: Enable analysts to influence availability, determining fare values accurately and quickly to reflect changing market conditions. O&D optimization increases revenue lift approximately 2-3% from legbased systems, and O&D forecasting and hybrid optimization adds at least another 1-2%. Proven and tested across all geographic regions of the world by the most successful airlines against virtually every business model. More than 50 airlines have licensed PROS O&D solutions. Other leg/segment solutions and non-pnr-based systems simply don t provide the forecasting and network optimization power that can determine the right price that maximizes revenue for every flight. Get vital feedback, such as which products sell more than others and what that means for the overall yields in any given market. 5

6 SMARTER IN EVERY WAY. What you get: PNR-Based O&D Demand Forecasting Hybrid Forecasting (Optional Add-On) Advanced Network and Capacity Optimization Hybrid Optimization (Optional Add-On) Fare Valuation Intuitive Data Analysis User Rules and Stategies Integration with Other Data Sources and Products including Real-Time Availability Competitive Displays and Rules Alerting Demand Forecasting: Protect revenue by providing distinct forecasts for bookings and cancellations at various levels of passenger itinerary down to the passenger type. PNRbased itinerary level forecasts automatically update to reflect real-time changes in passenger buying behavior. Hybrid Forecasting: Maximize revenue and minimize revenue dilution when operating a low-fare business model or competing with other low-fare arlines in markets characterized by restriction-free pricing. Predict passenger demand price sensitivity and willingness-to-pay at the O&D market level by yieldable demand or priceable demand. Optimization: Maximize the true network value of each potential passenger. Optimize the traffic mix, such as local versus connecting, point-of-sale, and more. Hybrid Optimization: Access the optimal inventory controls (i.e., bid prices and AUs) that maximize revenue. Maximize revenue in markets that exhibit low-fare demand behavior to counteract buy-down behavior and revenue spiral down. 6

7 Fare Valuation: Provide vital feedback to your pricing analysts so they know which fare products sell more than others and what that means for the overall yields in any given market. Enable closer integration of pricing and yield management functions, point-of-sale differentiation, seasonal differences in fares, and interline and codeshare adjustments. Capacity Optimization: Increase revenue performance by recommending optimal solutions for capacity management, such as overbooking, decrement, and convertible cabins. Easy-to-Use Tools: Implement user influences, strategies, and rules to ensure availability controls that reflect the most recent passenger behaviors and market characteristics, and use alerts to identify markets that need review and action. Data Analysis: Gain faster insights using standard or custom analytic views, workflows, graphics, alerts, and more. Competitive Analysis: Load and analyze competitive data and be alerted of changes. 7

8 About PROS PROS Holdings, Inc. (NYSE: PRO) is a big data software company that helps customers outperform in their markets by using big data to sell more effectively. We apply years of data science experience to unlock buying patterns and preferences within transaction data to reveal which opportunities are most likely to close, which offers are most likely to sell and which prices are most likely to win. PROS offers cloud solutions to optimize sales, pricing, quoting, rebates and revenue management across more than 40 industries. PROS has completed over 800 implementations of its solutions in more than 55 countries. The PROS team comprises approximately 1,000 professionals around the world. To learn more, visit pros.com. PROS.com Copyright 2015, PROS Inc. All rights reserved. This document is provided for information purposes only and the contents hereof are subject to change without notice. This document Copyright is not 2014, warranted PROS to Inc. be All error rights -free, reserved. nor subject This to document any other is warranties provided for information conditions, whether purposes expressed only and the orally contents or implied hereof in law, are subject including to implied change warranties without notice. and This conditions document of merchantability is not warranted or to fitness be error for -free, a particular nor subject purpose. to any We other specifically warranties disclaim or conditions, any liability whether with respect expressed to this orally document or implied and in no law, contractual including obligations implied warranties are formed and either conditions directly of or merchantability indirectly by this or document. fitness for This a particular document purpose. may not We be specifically reproduced disclaim or transmitted any liability in any with form respect or by to any this means, document electronic and no or contractual mechanical, obligations for any purpose, are formed without either our directly prior or written indirectly permission. by this document. This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without our prior written permission.

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