Lufthansa Systems’ NetLine/Plan analyzes buying behavior and helps airlines optimize their flight schedule
When choosing a flight, customers often have to weigh up the benefits of a cheap ticket against those of a convenient flight schedule. Different ticket prices influence customers' choice of routes and thus affect long-term network planning. Airlines can use this information to optimize their pricing policies while simultaneously ensuring the profitability of their flight schedule.
The price attribute in Lufthansa Systems’ NetLine/Plan network planning solution reveals how important the ticket price is to passengers compared to the quality of the flight schedule. An airline that is able to analyze the price sensitivity of its customers can devise better strategies to deal with competitors who offer lower prices or better flight connections. The new methodology combines historic price information with passenger travel data to analyze passenger preferences and predict customer behavior.
Lufthansa Systems collaborated on an academic project with the Department of Business Mathematics at the University of Augsburg to develop the price attribute. The project benefited from an ideal combination of academic knowledge and practical experience. Therefore it provided the ideal conditions to model this complex network planning and pricing problem in an efficient and practical way.
