AI-Powered Pricing Delivers 1–3% Revenue Uplift and More Bookings for Leading Airline
Smarter Fares, Higher Yield:
Aeroméxico
1-3%
Total revenue uplift from AI-driven continuous pricing and dynamic offers
PrimeAI helped Aeroméxico replace rigid fare buckets with AI-driven demand and price elasticity models, enabling continuous pricing and personalized bundles that captured 1–3% more revenue with higher booking conversion.
By treating demand as a function of price, PrimeAI’s solution delivered faster, data-backed pricing decisions, more relevant offers across channels, and a scalable foundation for future dynamic offer innovation.
The Challenge
Legacy revenue management treated each fare class as if demand would be the same, regardless of price, ignoring real customer sensitivity and competitive dynamics. Aéromexico struggled to react quickly to demand surges, competitor promotions, and seasonality, leaving money on the table or discounting too deeply.
Static price points forced “take it or leave it” jumps between fare classes, causing mid-willingness-to-pay customers to defect or not book at all. Further, teams lacked clear elasticity insights by route, cabin, and channel, making it difficult to defend pricing decisions with data in executive discussions.
PrimeAI’s Solution
PrimeAI implemented AI/ML models that jointly forecast demand and estimate price elasticity, treating demand as a function of price instead of a fixed assumption. Continuous pricing algorithms identified optimal fares between existing price points, smoothing sharp jumps and capturing revenue.
Dynamic bundling engines assembled personalized packages—seats, bags, ancillaries—priced to each customer segment’s willingness to pay and trip purpose.
PrimeAI delivered a production-ready, real-time pricing service within 3–6 months, integrating with existing revenue management and e-commerce channels with minimal disruption.
Revenue teams gained route-level elasticity and performance insights, enabling faster experimentation and more confident pricing decisions in weekly yield meetings. By modernizing pricing with AI/ML, Aéromexico built a scalable foundation for future dynamic offer innovations, strengthening competitiveness and customer satisfaction.
Aeroméxico achieved a 1–3% increase in total revenue, driven by smarter fares and higher conversion at profitable price points.
Booking conversion improved on targeted routes, as customers saw more relevant price options and personalized bundles instead of rigid fare ladders.
The Results
Customer Success Stories