In a deal that could mean a significant shift in airline pricing behavior, Israeli AI-technology based start-up Fetcherr, the developer of a real-time demand predictor and actions optimizer, has announced a partnership with ATPCO, the world’s largest fare data source for the airline industry.
Whereas current pricing methods are primarily based on human analysis of past pricing performance, the company’s solution uses deep learning technology to gather and analyze enormous amounts of data points from supply pricing, demand curves, competitor price analysis, political events, the weather, and more.
Fetcherr’s demand prediction and continuous pricing system for the airline industry is based on reinforcement learning methodologies and machine learning. It analyzes big data from diverse and variable sources on various network platforms, enabling the algorithm to draw accurate demand curves and granular pricing.
By using this approach, Fetcherr aims to transition legacy airline infrastructure to a new retailing cloud-based environment. “In the same way that DeepMind and Tesla changed how we see AI, we use reinforcement learning methodologies to overcome traditional legacy barriers,” said Roy Cohen, Fetcherr’s CEO.
Through Fetcherr’s ALPHA tool, airlines can access continuous pricing and workflow optimization opportunities to improve their revenue performance in real time. This enables airlines to optimize profits, grow their market share, and create a competitive advantage while reducing costs.
As part of the partnership agreement, Fetcherr’s AI platform will utilize ATPCO’s extensive fare content database, which includes both historical and current data. “ATPCO is the industry’s best data partner for this endeavor, connecting the airline industry to real-time data,” noted Cohen.
ATPCO, which sits at the center of airline distribution, powers global flight shopping through the more than 300 million fares in its database for over 400 airlines. “We continue to see exponential growth in the breadth of content the industry needs for improved customer segmentation and modern retailing,” said Ailsa Brown, ATPCO’s head of sales & partner success, EMEA.
“We’re collaborating on enhanced data analytics and airline retailing capabilities that airlines, consumers, and the entire distribution ecosystem benefit from when we need it most,” she added.
The air travel industry has been severely impacted by the coronavirus pandemic, which is now entering its third year. Israel, which has a thriving tourism industry, has particularly sustained significant damage, as the Health Ministry has struggled to regulate the amount of incoming visitors to the country.
The government had been operating on a “traffic light” travel policy, which dictated airlines’ abilities to allow travel to and from certain countries based on their risk of contagion, according to the number of active covid-19 cases among their populations.
The impact that this move had on the tourism industry is palpable. Said Terry Kessel, managing director of the tour company Diesenhaus Ramat Hasharon: “If you want to summarize it in one word, it’s a disaster. If you want to summarize it in two words, it’s a f***ing disaster.”