Online charter marketplace Avinode is adding new features intended to help operators better manage their profit margins. The company today is introducing system upgrades to ensure that flight prices as always accurately listed and that dynamic pricing stimulates a more productive balance between supply and demand.
The new features announced this week at NBAA-BACE 2019 include seasonal pricing profiles that enable operators to upload fluctuating monthly or quarterly charter rates in advance. Avinode’s algorithms also now include price accuracy percentages that measure the difference between a listed and a quoted price for a flight. Before the end of 2019, the Swedish company intends to develop cost profiles that operators can use to upload all the costs associated with each flight to measure both the profit achieved, as well as the revenue.
“As the business air charter industry turns towards digital transformation, we have more data at our fingertips to help us learn how this market behaves, what customers want, and, above all, how to price flights to generate maximum profit,” said Avinode senior commercial analyst Harry Clarke. “Many of these lessons derive from commercial aviation, such as dynamic pricing, using our knowledge of seasonal peaks and troughs to raise or lower prices in line with demand.”
On Tuesday at 3 p.m., Clarke will give a presentation on charter profit optimization at the Avinode booth (C9624). “Better price accuracy from the outset builds trust, leading to higher customer retention,” he commented. “Plus, our tools help you to be confident your prices reflect market conditions, so you’re not over- or under-pricing flights.”
According to Per Marthinsson, founder and executive vice president of the Avinode group, the improved Cloud-based system can replace operators’ internal quoting tools. “We have a lot of data about the industry and we can see trends ahead of time,” he told AIN. “We have a forward-looking view that doesn’t exist anywhere elsewhere, and this allows operators to be more sophisticated in their pricing.”
Marthinsson, who is based in Avinode’s U.S. office in Miami, said the current outlook for the aircraft charter market is far from ideal. “There is nervousness in the U.S. about where the economy is going and charter operators have struggled when compared with what’s been happening in the fractional ownership sector,” he said. “Overall charter has been flat, although Europe has a surprisingly good summer that meant that some operators postponed maintenance work [to have enough capacity].”
Reflecting on the imminent Jan. 1, 2020, deadline for the installation of ADS-B equipment on aircraft operating within the U.S., a recent survey by Avinode found that around 80 percent of aircraft were equipped at the start of August. The company believes that most of the remaining aircraft have since been fitted with ADS-B capability or at least are on track to complete the process on time.