PROS Holdings, Inc. (ticker: PRO, exchange: New York Stock Exchange (.N))
News Release -
PROS Announces Low Fare Strategy
Houston, Texas - June 11, 2003 — PROS Revenue Management, a world leader in pricing and revenue optimization science and software, and the pioneer and dominant provider of revenue optimization to the airline industry, is leading the revenue management community in scientific research on the low fare environment. Forecasting and optimization for dynamic price-based product in a low fare environment is proving to be a key to business success.
Low fares have always presented a risk of revenue dilution to airlines. To more effectively manage this concern, PROS encourages airlines to consider two distinct revenue management products for their market segments; the traditional product with rules and restrictions, and a dynamic pricing product based solely on customers' willingness-to-pay.
Benson Yuen, president of the travel and transportation group at PROS, "With complex networks and diverse sources of commercial revenue opportunities, airlines need to correctly categorize low fare consumer behavior." "PROS Revenue Management," Yuen continued, "has forecasting solutions that will enable carriers to distinguish between distinct products for two distinct market segments."
PROS Revenue Management has been working over the past three years to develop the pricing, forecast, and optimization sciences that can successfully support low fare optimization strategies. Much of the science being proven for the low fare pricing optimization is transferred from successful revenue management science applied in other industries such as automotive and energy.
Knowledge of competitive pricing is integral in a low fare pricing optimization strategy. PROS' solution helps the airlines capture, store, and analyze competitive fare data for the analyst who is making decisions about the number of low fare seats to make available.
PROS believes the trend of inventory availability and pricing evaluations have to be dynamic and real-time for the constantly changing market environment. PROS has designed and built a Dynamic Pricing Engine. The architecture provides high flexibility in implementing complex decision models and is highly scalable. That means the system can be scaled up to accommodate your growth in terms of data volume and high performance processing.
PROS Chairman and CEO, Bert Winemiller, asserts, "All levels of the airline organization need to understand how low fare pricing optimization impacts markets. Optimization can be successfully implemented in low fare markets. PROS Revenue Management has been developing and proving our pricing science for over three years and we look forward to providing the airlines with a complete solution to compete in a continuously changing environment of low fares without revenue dilution."