23. 10. 2009 - Czech Airlines Puts Its New Ticket Offering Management System into Full Operation Today

Prague, 23 October 2009

After exactly one month of test operation, and one week ahead of plan, Czech Airlines is today launching the full operation of its new system for managing its ticket offering, called Origin & Destination. The system newly sets the prices of tickets involving a transfer in Prague not separately for each segment, but by assessing the entire trip as a whole, taking into account increases or decreases in demand throughout the Czech Airlines network.


Since 23rd September, we have been migrating thousands of updated entries concerning market developments and bookings and testing its functionality on one hundred Czech Airlines connections involving a transfer in Prague. The results are encouraging.  It became evident that had Czech Airlines used the Origin & Destination system since the start of last year, it would have got tens of thousands of new customers on the one hundred tested connections alone.  For example, on twenty Origin & Destination connections from the Near East or Balkans to Northern Europe, Czech Airlines could have, with this system, got nearly five thousand new clients last year and this year.  And in the 2009/2010 winter flight schedule, there are over 3,600 such connections,” explains Tomáš Holan, Director of the Czech Airlines Revenue Management Section.

According to calculations, the potential of the so-called sixth freedom, i.e., transit passengers transferring in Prague, amounts to approximately USD 3.12 bn per year.  “Even before the full launch of the Origin & Destination system, Czech Airlines already holds a nearly 12% share of the market.  And the results of the test operation, using updated actual data, confirm that Czech Airlines could get up to 200,000 new clients annually, of course provided that some unexpected turn does not take place in the aviation business,” adds Petr Pištělák, the outgoing Vice-President of Czech Airlines for Marketing and Sales.

The Origin & Destination system takes advantage of the geographic situation of Prague and the principle of network flying, when Czech Airlines aircraft arrive and depart from Ruzyně Airport in connected waves. Thanks to the arrangement of Prague Airport, in most cases, passengers can transfer from one flight to another within an hour. The system efficiently sets ticket prices only on the basis of the places where the trip starts and ends, with a view to the Czech Airlines network, which makes it possible to offer competitive conditions to passengers who are willing to travel through Europe with a maximum of one transfer in Prague, as compared to taking a direct flight.  The new Origin & Destination system works with the price more plastically, to maximise the likelihood of the sale of free seats in the Czech Airlines network and to maximise the overall revenue.  “The existing system only assessed demand on the basis of point-to-point connections. For example, it assessed separately the connections Prague-Madrid and Yekaterinburg-Prague. It was not able to efficiently assess as a whole the Yekaterinburg-Madrid route with a transfer in Prague, and the demand for such a connection at a more advantageous fare, while gaining further passengers for both segments of the trip. In effect, this led to us filling the Yekaterinburg-Prague segment, but not the Prague-Madrid segment. With Origin & Destination, we could fill both of those segments “, concludes Tomáš Holan, in describing the principle on which the new system operates.

 

Hana Hejsková
Communications Director
Czech Airlines Press Spokesperson