LATAM Airlines Group is to use Sabre Air Price IQ technology to enable it to generate offers better tailored to market dynamics and insights.

The solution is part of the technology giant’s Retail Intelligence suite of products that makes us of artificial intelligence to optimise revenue management in real time.

Sabre says Air Price IQ enables airlines to turn data into insights based on their own pricing models and business rules and strategies, to set boundaries for airfare pricing.

For customers it can optimise air prices to drive higher conversion rates and improved returns by delivering more relevant offers across different channels.

Rosario Phillips, vice president of customer and commercial solutions at LATAM Airlines Group, said: “In today’s competitive marketplace, it is crucial to offer travellers a more relevant travel experience.

“Our partnership with Sabre can help us bring the right offers to the right travellers at the right time by using intelligent systems like Air Price IQ.

“The flexibility and scalability of Sabre’s solution allows us to test and learn different pricing strategies, including using our own models, enabling us to move from static pricing to dynamic price, adapting quickly to fast-changing market conditions. It’s an important step towards the future we envision for dynamic offers.”

Air Price IQ has been developed to be cloud-native and scalable, capable of handling seasonal and time-of-day increases and decreases in shopping requests, allowing airlines to adjust their prices based on capacity, competition and traveller context.

Analysis of marketplace, pricing and revenue management strategies, as well as booking velocity, allows airlines to be more precise with their pricing decisions.

Darren Rickey, Sabre Travel Solutions senior vice president, global airline sales said: “LATAM has been a highly engaged partner that has collaborated in designing and providing feedback to our solution.

“We are excited to see the fruits and benefits of this partnership materializing with their adoption of Air Price IQ, as we share a commitment to innovation.

“The airline industry is constantly evolving, and airlines require intelligent systems to manage increased complexity and channel fragmentation to deliver a seamless, personalized experience to travellers while improving profitability.

“Enabling airlines to dynamically price their airfares and offers based on the travellers’ propensity to purchase, customer profile or current market conditions is key, and requires intelligent systems that analyse large volumes of data at scale to deliver actionable insights.”