LONDON – With ongoing concerns of a global recession, businesses are seeking ways to increase efficiency while remaining nimble. Unlike other economic downturns, companies can now use Artificial Intelligence (AI) to help navigate these challenges.
The scope of potential applications for AI in the aviation industry is vast. AI technologies can potentially value add to operations and flight planning, security check-in processes and passenger screening and biometrics.
These unique applications build on the potential of AI to value-add to more universal business functions such as financial and administration functions.
In this article, Dr. Uri Yerushalmi, Co-Founder and Chief AI of Fetcherr discusses the operating environment unique to the airline industry, and analyses the benefits and applications of artificial intelligence (AI) in the airline sector.
Fetcherr, an AI-powered demand prediction and algo pricing company, is revolutionizing the airline industry by helping them optimize pricing strategies, predict demand, and ultimately improve their bottom line.
The complex airlines environment
The reality in which airlines reside is very complex. There are many factors that affect that environment, from fuel prices to weather conditions, from competitor aggressiveness to customer demand elasticity.
Every such factor has its own way to influence the airline’s environment while interacting with the other factors. State of the art new AI models can understand this complex landscape of factors and guide the airline to make the right decisions.
This might include things like high-frequency pricing decisions, while knowing in advance the outcomes of such decisions and their anticipated trajectory of events results in reaching maximal profitability for the airline.
Real-time high-frequency pricing benefits airlines by automating price adjustments based on real-time demand.
This in turn leads to increased revenue, improved efficiency, better customer experience, enhanced competitiveness, and data-driven decisions taking place 24/7 for the whole network.
The use of real-time data and a proactive approach that is used today in the e-commerce and capital markets can enable airlines to make informed pricing decisions, respond quickly to market changes and stay ahead of the competition.
Improving work processes with AI
Artificial Intelligence has the potential to bring about significant improvements to the workflow processes in the aviation industry.
The automation of routine tasks via AI technologies enables the redirection of employees to focus on higher-value actions and decision-making while increasing their productivity.
Furthermore, using AI to analyze vast amounts of data provides actionable insights to the pricing team while improving demand predictions, reducing operational costs, raising the RASK factors, and eventually making the service more appealing to customers.
Fetcherr is an Israeli Algo Trading-based startup that developed a proprietary AI-powered pricing system, using proven reinforcement AI models to increase airline revenue by enabling High Frequency Pricing.
Founded in 2019 by experts in deep learning, Algo-trading, e-commerce and digitization of legacy architecture, Fetcherr aims to disrupt traditional, rule-based (legacy) revenue systems through deep learning methodologies, beginning with the airline industry.