SunExpress introduces dynamic pricing for seat reservations

6. August 2020 - 11:00

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Added dynamism thanks to artificial intelligence: The airline SunExpress, a joint venture of Lufthansa and Turkish Airlines, is taking the sale of ancillary services to a new level. While in the past the prices for seat reservations were static and the same for all flights, they are now constantly adapting to individual demand for each flight. To do this, SunExpress uses automated algorithms based on Artificial Intelligence (AI), which permanently monitor and evaluate factors relevant to demand and, if necessary, initiate price changes. The data is also analyzed and taken into account for further optimization of the models. These factors can be, for example, the current occupancy rate of the flight and seat categories, incoming bookings or flight duration. Personal data is of course not used in the calculations in accordance with legal requirements.

SunExpress is now offering its guests a wider choice of five price categories on each flight instead of the previous two when reserving seats. Previously, when reserving a preferred seat in advance, there was only one fixed price for all so-called XLEG seats with significantly more legroom and for all other regular seats. In future, customers will be able to choose between two price zones for XLEG offers and three price zones for regular seats. Due to the highly developed, demand-oriented pricing algorithms, passengers will in many cases benefit from noticeably lower fares. At the same time, SunExpress caps the maximum prices for a seat reservation so that a certain tariff is not exceeded.

“By making our prices for seat reservations more dynamic, we are making the tariff structure much more flexible,” comments Roland Hans, Revenue Manager at SunExpress. “Our guests have more choice and will save a lot of money – at the same time we are taking a big step forward in the use of future-oriented technologies in the sale of so-called ancillaries. This once again underlines our position as an innovative airline”.