Aviation Business News

Virgin Australia deploys AI tech to improve revenue management

Virgin Australia
photo_camera Credit: pict-japan/Adobe Stock

Virgin Australia is to modernise its revenue management practices with Sabre’s AI-driven Retail Intelligence suite.

Sabre Air Price IQ and Sabre Ancillary IQ are intelligent solutions designed to help airlines increase traveller satisfaction and improve revenue management optimisation.

Powered by Sabre Travel AI, the software and technology provider says Virgin Australia will be able to use flight and market insights combined with advanced machine-learning models to move from static pricing rules to intelligent real-time airfare and ancillary offers.

Sabre Travel AI is powered by state-of-the-art AI technology and advanced machine-learning capabilities from Google.

Sabre says it is integrating this proprietary technology into existing and new solutions to help customers to deliver highly relevant and personalised content more quickly and create expanded revenue and growth opportunities.

Roshan Mendis, chief commercial officer at Sabre, said: “We’ve had a strong and highly successful relationship with Virgin Australia for many years, so we’re delighted to build on that foundation with this augmented agreement.

“Adding this suite of solutions will enable Virgin Australia to step into the future of modern airline retailing and demonstrates that Sabre technology is the choice of ambitious, future-focused airlines.”

As part of this partnership, Virgin Australia and Sabre have also renewed their multi-year distribution agreement.

This will ensure Sabre-connected travel agencies can continue to shop, book, and service Virgin Australia’s air and ancillary offers with speed and scalability.

Dave Emerson, chief commercial officer at Virgin Australia, said: “Virgin Australia guests sit at the heart of our business and it’s essential that our technology partners, like Sabre, can support us in delivering value and choice to customers.

“Our deeper alliance with Sabre will enable us to create better offers for customers, and then have the mechanism to ensure the right travel buyers and travellers can access them.”

Virgin Australia has already been using an extensive portfolio of Sabre solutions, including Sabre’s Passenger Service Solution (PSS), Fares Manager, E-commerce platform and Network Planning tools, as well as Sabre’s Revenue Optimizer and Dynamic Availability solutions.

Garry Wiseman, chief product officer at Sabre, said: “We’re very excited to bring our new Retail Intelligence suite to Virgin Australia through this new deal. Our innovation partnership with Google is enabling us to deliver unique value to airlines and, in turn, to their passengers.

“Adding these new solutions reflects Virgin Australia’s ambitions to move towards a continuous pricing model; delivering truly personalised experiences, while enhancing their marketplace position.”

Virgin Australia was relaunched in 2020 and has since reset its strategy by positioning itself as a value carrier in the marketplace.

The airline has made significant investments in its people, fleet, and technology, and is currently flying to 42 domestic and seven international destinations.

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