Dimitris Hiotis, Partner & Damien Robert, Simon Kucher & Partners, talk about Revenue management with a customer perspective
Automatically Generated Transcript (may not be 100% accurate)
We're gonna talk today about. Morning from operational revenue management customer centric revenue management. And I think that the session we have before actually up very good that prelate an introduction to this topic. Very briefly what we're going to top the Barclays is how. You know there's a lot of far consultation going to revenue management got booking cabs have got optimisation Hargreaves. Lovely excel as the bill that will solve or something. But the reality is that we often forget that. Then result of that is a price that customers see somewhere and maybe compared with someone else and based on price mix of important decision whether to buy something not. And and what we're gonna talk about is actually. Forget obvious sophistication of our revenue management meaning fits well but many durable probably quite extra target but let's look at it from a customer perspective hadn't actually. You know how how well confused or not they are with what we're doing with price and how do you make it's a bit better another would probably preclude them talk about. Before a bill that for the very brief introduction. Wealth Meehan at that never consult with but we've actually been an industry for a long period of time so. Before my talent sample juror I was we're looking forward to a trouble in the the UK in the lab Billiton. Essentially building a yield management solutions. Other conditions makes sense. We're also running a bit has been I think accent as a common theme in this. In this conference which shows. How I divest this group is so my acting as a big blockbuster buys Asian between their. My father is American. I was born in Greece then I live in the UK so no one actually what's up exactly. One Macs in these. You can make your own conclusions. And they're obviously when you talk about our sense you cannot not Harbour front peston as well with the French accents are less than an introduced himself as well. They attribute this very nice introduction we started this morning with that you name words. While speaking French living in France the only a nickel and then get the work situation. Yeah the French in junior. Maybe it'll mean anything do you but it means that when you're a French new engine year you can you can stop learning English let's call. Ewing seven year notes that you have to learn Jen. Thought if you want used an old us of deutschemark and who better. But that saw. Again apologise from my medicine with English but still a hair and remain ensure after five years or it keep you either left its key. The joint evening. But did well the good place to learn English. So I've been head up studied again promotional pricing up the net from two southern factor to southern it sells leading pricing. Regarding what hot L parks. But also here to say a ten yen merchandise were people aren't really view regularly usually unhappy with. And day one Beckham is due in 2008 and I work for a L alliance now I work for has delicately US and you may have for a thing human bill. And working also for current on the company's embarked on in your appearance. Mother mean friends but a slowing or other geographies in Munis. And the rest of Europe. Italy yen ending yearly basis and there really hasn't run first. Foreign dignitaries for the Forrester I would say twenty minutes sort of pick apart publisher time. Lesson right. And that little problem. Excellent. Match. To disturb even better for we are so we are we error man confronted backed specialising pricing and marketing. And in Q some chords above us and actually this is and might make things for army admittedly from Germany but you know. This is on the cover directly featured when number one in marketing itself we wanted to Narnia and came out but what that means that. What actually means we are 4% now are forty's pricing. And marketing with on average an anything out and that's why. That's why we're here. You've got up a lot of details about as one unearned men want to barber there's there's a visible upside we've with some leaflets in terms of areas we. We work on the mean Bosnian -- and run the travel transportation Tories. Specialist. And we work with airlines train operator scorch operators. Tore operators. We work with hospitality. Car rental. Be tooby services. Well sell all the way down into a theme parks movie theatres. And some people like parking airport parking for example multiple programs and in trouble right solutions right trouble port. What we're gonna talk about is we think this is your customer. So. As actually and I it's it's it's a grisly image that basically made is when we do all the sophisticated revenue management. How much do we actually think about the customer and how that the customer actually see. The result will is that for the fourth goal implement self but it. So they could question which yet to ask is how much does your customer a budget company actually. Take into account come the customer when designing things like the price architecture when agreeing with the price levels should be. Well talk on marketing them so you mention about communication in the pre recession a lot of what Intel communication. There's actually a lot of our external communications hub yet communicate. Your price and new product. And that bolt to the most important because price is part of the factors that Q valid product. And the right price is the one that actually reflect the value of our product. So going to briefly talk about that and we're not look at three different areas under applicable the first one and then the names can take the other two. The first thing is just give a bit of context of how revenue management has actually in the customer behaviour how the things you've been doing. Have actually. Reflected back the customer. What is actually happening. And there are a lot of factors are actually happening in the Mormon and this is all or part of the sophisticated revenue management has happened over the years. So first we have our complex the product range and conditions so. You know take their airline industry just be very simple just have one feed then there was a meal in the with a package now. You know turnout I think that actually three different products. One is without baggage down one is the baggage but with some flexibility members' business blast. So you know. Just even taking the airline which has one see above have become a bit more complex in. Let's not built the hotel because apart from their wrong type you now have the terms and conditions weather breakfast is included a mark etc. You know how guys like this like alligators. So like chi open skies comes as well which. Have made it very very is in very very simple for me to compare all of you very very quickly. And find who has the best price. What is their average review of the people get so I can really get abatements Byron. Picture of the market. Anyhow block possible likely coming have change the customer references what we mean by that these. Customers have a very different perception of what that would price because of them than before because they've come and acting in in especially in the airline industry they dropped the price relatively doubt. But the same time you got a lot of volatility. I've got you know I obviously because my back. I'm troubled risk allotment. You know sometimes I I pay for a ticket or appear and twenty pounds. And active I wanna buy now and Christmas time the BBA prices 800 pounds for the same see coming up at a massive buying to think about eight times the difference. And that's that's but that's a lot fall for this asset. But also there's a lot of things we do actually get a bill by argument by media Sweeney to be a bit more careful. Original example is and maybe you know Barbie Israeli airline that went on in July where. A sort of American carriers actually stopped selling rods to add Israel. The Fed because I'm 50% mark up sure that the as a clever revenue Manchester behind the pick up interesting demand. But got a very very bad media. M sometimes we need to taken that into currently control about yeah obviously from a profit perspective the short and properties massive bad. You're actually. Doing a lot of dumped you know media another example is you know remember when wooden chest and died. Within within eight hours that the that the price of albums I'd hiking fifty rocketed. And that's again because of their enormous demand poultry because of that event. So. Would be a bit careful in the business this is that this is probably what example where. You know clever systems done actually appreciate what's going on around them. And automatically do things that actually could hurt your business on the long term and the goodwill but you up your customers. Then we have this lovely thing which scored promotions inventory Ural keen proportions but. Promotions confuse customers. Either confused or more actually. Get them to just wait for a promotion to happened many times we would find that people run promotions because they run them this time last year and they need to look at the gain position and you know what to achieve the same position I'm probably have to answer promotion. And get a point where customers may call the handset went up from Washington around because I'm waiting for that book in me get into that. Funny cycle. Big oil to programs which. Which can be very good but basically they need to actually sell the valiant and they need to be there that entice the customer state. And also on top of that we had we just had a big financial crisis which has changed the customer behaviour are actually people. People behave and act to borrow fighters which actually need to up some big by confused. And Ottawa got some people were really really changing the market you've got looking Bob yeah you're booking dot com which away wanna top of them. But you know. No one of the most powerful troubled side Godfrey bloom bookings in in in development twelfth Utah Governor Palin delivered top you know why I regularly gobs more financing Greece. And even though the loughlane Ben teller hates there by actually it has given them channel the brunt of the market and actually get there people. And this people are becoming very important and very powerful. But also that the customer. Now is actually starting to understand revenue management and start to get taught some statistics. But it's actually telling them what can happen. So you get into a position where he built kinda limits tell you what to do tells you to buy something and he has my confidence. Where they should buy because. Paper started analysing what airlines do so it could tell what the price could be. A you have things like buy now Hari you know on the two seats left or you know. I'm aware that six people looking at base and for bookings made in the last second. All those things. Which are essentially formation upbeat how the system that actually drive prices. I've actually gone up. What's gonna happen and that the purpose of that is. To educate the customer. So that actually they can make more informed decision when a better prices by Carlos on men but it's more acceptable. Probably for the price to be more volatile and change. Now we're we're looking back from Washington how they impact of those promotions for people that run practically have affect the customer perception and how. By running promotions. You could create a situation where actually done actually want. Be that this is research we do for a in in France I think was with 1000 funds. Citizens from a panel. And that the double its work cupboard was obviously on the holiday area so. What other habits for summer vacations. Type of stay the lead time M a for the effect promotions. Well we found is probably something that about the tour operator of the company we're actually bond me like a lot. That when we asked people how likely booking compared four years ago at 2% actually booking later. For the shift is relatable king which is probably the biggest night forever and manage all right because. You have more and more uncertainty whether you're gonna sell something. And apparently sticking and that's people book later you panic more and probably from more more. And the reason for it. Whether essentially. This the hard French market. Has has behaved as many people. Had realised active promotions and more attractive as it booked later. Sales of the panic Lauder brand manager rob let's discount everything because time is running out. And actually really quite up with people and it's blocked if I wake later I'll get about a promotion. And essentially by doing what we're doing with our pricing revenue management we're creating something which Madonna 51 to create. Now other steps taken so is that if they don't probably an idea that I'm probably more perception among I didn't because. My alarm by knowing that promotions would be better later plant probably can have Moffett built in my back in the what can do with it. And when you look at going to be more detail off essentially. When you look at all benefited from the promotion. And what was effect in terms of booking later than before. You can see that place Michael tell. What the ones were actually. Had the biggest effect from Washington benefited the most. And as a result there's a clear correlation with people walking later. TC hotels have bigger proportion of customers benefit from a motion as a result a bigger increase than people actually. M. And buying later. What as a result level that. The reality is that OK in some expect if some aspect people actually liked up from more from sell when we're asked them what would you like to have. More promotions or would you actually have to up less promotions and know what's what's gonna happen. OK big proportion was saying coming off Morton's monitor not get confused. But as a significant about a third of people. It actually I would prefer to have less promotions. I want to be clearer. I want to know what's gonna happen that's element and that's. That's where whatever the baht is dead and we saw their Van Nuys video before I think that's built up after an example just tell customers what can happen be clear and transparent. And then actually that will work in your benefit. And that links for the second point that when you ask people what were they like to do. 52% say no want to book to benefit from the best price and 40% and demand one argument not one to book the benefit from the best price. That sold the confusion that exists people don't actually know more when the best prices and that's mainly driven by hot touts. Would see another recent should be needed in the next slide which shows how much different the perception that that point. Is on the airlines and for Robson hotel and the train trouble actually that the that the differences barking. Another point is the last point is you've actually got into a situation where will this promotions but people do not bought it there's not morph. Because that's the only way for them to actually find that a good deal and get about 42% think that. And 58 think what this to a slight majority that actually does not influence how they buy. This is something we actually in the UK in itself sells what I was saying before when you look at airline found been very clear that educating customers. When a good price will happen. Is is an example I think I'm Alex Bennett as well so what people ask. What giving up the prices will prosper depart just 7% of people will now I think it's gonna go up. And that we correct right wasteful or from nineteen you know digital drops. And actually it's on other place by late morning on the down and that's that's the result of lady yields you know this is an industry where. Traditionally pay everyone used together late deal either regulate market it's probably still the case. And this is a business what a lot of them a lot of the pain we we have worked Chileans probably still be cases hardly get people to walk out here. Because a trend is what later and later. Trains. A big like airlines you know they're quite the white relevant you know the later you will the more you pay. And I'll tell heart soar well not so bad to Astoria -- operators. Actually I warring. Again it's not very clear and there really is because it's not consistent thing strategy. And a lot of times of the last being promotions or you're actually deep in the late bid price of the very real rate constant to to a rival. Which actually create a confusion. So. This is to me probably at the best picture I can act think prop up how. In certain industries fed locations serving management of people white educated and know what's gonna happen and based on that make a decision adding some others as a lot of confusion. And that is not necessarily the best thing to do. So with that I will pass on to dump them. What should you know by durer customer view on. Whether as a big problem means it's from. The big problems is thrown. Is that we are very very analytical people. So when we look at the clients. We all think that the client. Things for a Mary whizzes are less image here is very rational all is involved who can compute all the information. He knows everything about. But as you on our for the brain of the customer business so one bark of the reign of the customer. Customer is also a irrational. You react these creativity. A member of the same value us throwing yet occurred. Is feeling operates image. Yes sensitivity. Is non rational. And one of the big challenges is to take that into consideration. In your pricing practices and your revenue management practices. We should the customer journey in three phases. For a complete. People consider their responsibility asked price errors is probably here. The conversion time at the price assessment case. But you are ready murderers and price Europe's. Are responsible for far driving price interest. Driving traffic to your website was all right freight image. And you are also responsible for the price storage rates once he had been to your destination to your tell you that you your are corrupt loser. So what as the price image said he's keeping in his mind when teen when he comes back home through funder of French mutual game. So through phases. Firstly its price interest rates. Very effectively we hear about. For a topic which is price sensitivity. But is it not already first about phrase is it really did. If you look at it be yes that is digs. In 75%. Of the cases. He balls does not bad for a speech. Doctor Dunn degree you responsible that's priceless to make sure that's your Alltel is also very well positioned up on in dumped off. Being at the right price index in percentage. But just what is that. Visibility index offshore rates under website. You need also to have a good price image a good idea of common perception. And what is interesting is that the customary nuts correctional. Whether you're bullish or want to bridges looks. Hammers them. Why do you go to Hamas. Because it's convenient it's always very good value for money and cheap cheapest prices. If you look at where they have done so prices is it right. No. If you get that up twenty books. That's through. Up by 6% cheaper. Than jobless if you look at that 24 hours after the fifty. That 12% more expensive and the cheapest. And 10-Q for the 52 had two from fifty to a hundred. Saw no need to understand also why are the ones that are important to grow your operator image by doctor price sponsor references. Because you can also be pursued other affordable. Way nobody always must the cheapest. This is what drives for example so different operates image. So to reset that we had made between Toronto and Ryanair in Germany. And where we compare our on one side. On the left. What's the reality young on many cases should take a portal price for a customer look bonds worth more or less expensive than Reagan. If 30% of the cases Lufthansa was cheaper. Issues as the question of the customer. Keyboard say in average that it can be drawn into percent of the cases. So as a price image is very important and has not only driven. By. To break certain picture but a recent example. I went to a Santa less. Is anybody from elephant in the room. OK let's make it. Ate a button to just under this. And add to play a grenade and what directions not merely wants to always. That business to get worse in 2000. Europe's. If but when euros for return ticket. I took his wife on anywhere from need to be in the meetings before and after. Had to explain to make customer YL watts bring to charge him eight further Europe's. That's clearly a that's artery and then talking to you today about this situation off if I'd be Europe's. Hole with one price and afraid has been fall but is reflect the type of situations were. They want a foreign comes off price is that yes they're optimise surprise of just right. From a revenue perspective. But from a customer satisfaction. En net promoter score. And clearly the detractors were discussing tomorrow and his this discuss union contemplating today so. In in the same way Disney. Father Lion King short in Europe's. Did exactly the same as that would you place a dynamic pricing. Did you put in place a limit. So even if they knew that they could charge more than 400 dolls off reverend doctor Don members for full. The deciding not to do it just to keep with what might. And vote your common perception that under long term. The performance of the assures that only lets not only last one year or two years three years off for Europe's. So who need to consider is that you into your revenue management and press this efficient. Once you the customer either good image review only goes to your what that. Poor is responsible for checking surprise image. Pop commercial imaging displays I don't want got from our with anybody but they could take any website of tall operator. For example ended various regularly match this picture too many messages. Is really frightening because it'll what do you one from so somebody gets to be really responsible. To. The date of promotions. Prices liberators that not presented on the web beach. Good issue do that jury confusing the customer. And is not feeling comfortable to back. You also need to train guarantees. Why. Because today keyboard I'm never sure when they're going to shop you will also has a website that image is whether this craving for disease parade tanked approaches. So you need to press guaranteed to make customer confident that it is all right time frame to book. Let's broaden our enterprise assessment fees. To ease into your website and is looking at a different products. The customer. Doing that reacts with absolute prices. But due primarily as as the price. Wondering did really give to the other one illustration. If you go from somewhere. Or not you our. Along tonight. Let's say you're due a wait. For Europe. And that you've got to have a market. And you want bridge of the ballpoint. Which one would you select. You really. People would take the ten Europe's. Eads the same day. You got us bond markets. Elusive free bubbles. Select few good for you to select a twenty euros is much much much later. Top people needs to be secured a sort of having a set of trades which does not have to be too complex. But can be either way to make and price assessment. Was you heart disease price compared to another product. And this is one of the promised a forecast bundles may get a job only one product bull. If the met want to make your press can present knowledge of the would deal slated to go to another website anyway. Tools and more you have products. Talked with three products in your on the range. We give a make realise that at the perception that the meeting would deal. Another example. Friendly economists. There had two options. One wise. Web only. Web only. And the price worth 59 dollar not. The soap unwise to bring them when. At under 25 dollars. We exist. This as a mix that they were achieving. 68% of the people were taking on the web. And 32% of word taking whether. Plus points. There's ends introduced a new option. And this new option. Wise I and Britain 25 dollar us. Adding as a print only. Look at the mix of sales. Just by introducing this. Product at and red 25 dollar us. Which is what record decline option. But try not to be purchased. The print anywhere suddenly looks very very appealing and ID 4% of the people. Pictures. People customer are not rational. And even need to be environment a proper excels on that as rational as you can think. Price storage feeds. You as the last example I had he owns a slate which is none directly literate resentment trust petition. But which is directly linked who. FMC into his case. Look at under three. Different excise. Top detergent. And we made a research. Or digs it of the shop. We're not quite well as a percentage of your board. Said it remember as the price. Nowhere has it all to remember. Hundreds eight. And if you look at the figures. 79%. Of the keyboard we averages of one leader backside but remember the prices. And percentage off onerous commission opted bought thinking that they've paid more tender price is only 2%. And on the other side of the spectrum for that kind of shifting looters. 37%. Of the people remember it came they remembered and 49%. Overestimated. What is the reason behind. Why. Delineated. Not. Prices did is higher under. On the small package. Fernando. Yep. Out. Now that the ones is very close to work for a number say. You very busy keys or wonder back if you repurchase laser head of the Femi. That the father of the more of them which looks very carefully at the top dollar budget and not very well I'm just costing every element. Wasn't more exercise is pressures they usually. Give a but are still singles. More Mendes and woman. Concluded. Because video as a matter anytime under pressure only when the need. So that's typical example for the price remember this is important because under lets you gently price increases well on the right side you need to be very careful. And then an example. Something we did India hospitality. We has so what we're really expensive price. For two different products. We adequate wasn't so expensive price possible breakfasts. And for the room a great. And what did we see. We see on the left. The father breakfasts. Customers at the very QU lady off what is a reasonable. Price for breakfast. You should go higher. We an animated. Then twenty to 25 euros. He bought. And they don't also expected breakfast yet by Europe's. Those are very narrow price range and people either very Q ID off what is that an affordable price for wrecked. To do the very simple and is as a new product. So why does it mean it means people fields in need to broke took these plays using you him raw. In the famous Ned from what a score that were describing earlier. But this is a new product work Apollo very key ID off pointed to costs. If you look at a right and a price point of the run a great. Very different. Ideas about what should be the price of rom upgrade. And secondly. It is another new product but something that people can decide to they coroner to take. When I was in Disney. Trade at two major corporate on the left side is a can be. You have to read when you're in Disney so you need to be very careful wells break points won the right side you'd imagine they've won. And when you can decide to pressures video of the media and not depending them. White wanted to admit you feel it's your own decision for the very important that prop all offshore businesses. You understand which price of the huge impact and the perception. And words the other day with bigger items. And bigger and so is charging for an MS MS. One Euro. Just to inform you on the flights. So that's a typical example I've read uterus. The should be removed and are clearly not accepted any impact in Europe customer perception. Neither your your pride Trenton prices it's also very important to optimise your web self don't look. Optimise your web cells that are which means away you present your product to your customer. Because his ads and huge impact buoyed by your conversion. And your average basket. You can have the best product range in prices if he's not well presented to your customer. You will honestly are for the benefit. You can have you have different dimensions joked you made yourself so. Should you haven't won a multiple sellers they know. Same for everybody on betting on Euro royalty review of the different cells Damon. As sales Baylor sequentially. Baywatch based Darden we're kind of additional elements they prop wasn't fun. Product selection process for the troubles all made products will entice promotions agreed. To everybody are selected. Cross sell or sell the price transparency topic is also very important. And the products corridor. So if you just stalls and name of the product that don't know the description the benefit of the customer you will never achieve. The or so much want to achieve. Yeah different iPod sales there are some foreign need these soared issue very complex product Europe is what's American Express the sometime it's also about insurance is you want west questions about. Why not. About the blustering self and based on those elements we make specific recommendation. Forehead to refrigerant for example instead of asking as a destination. Delaying source A you could add about. Do you want to go for sound you under before ridge what kind of time bridge for a swap whole father who want to go. To sit on importing name mentioned is product discovering. We see today in many online website and ineos fidelity played a website the work is now Don I think when you hear. Explaining why aren't you frank value. Characteristics of the rate assuring for a as a venue before the prized for its. Also headings all right featuring crude Jerry Yang. Helping as a customer finds the right product underwrite tracing. This is under let an example from fashion retailer where you can select your clauses paid time off delivery by type of material or by. Call by many things but underwriter the example of club med. For you where you can select your take a village based Deborah effectively do you Q global bond markets clever and so on and so on. So do because you remember that the customer and do not go to the second page. So how things that's featuring coverage area to ensure that relevant prices and product is also critical. Price transparency is the most. We did the project for Disney. In nineteen. It in now on average people where doing nineteen. Price surges. Before the Verdi date. The hotel and ebitda state. And they were losing a lot of customers along these nineteen crisis. Why because people wanted to check if there was not and not hot old which was cheaper and not the date and finance onto it's very important that you have to wait keep rated. Price transparency. On the coast underweight sectors that people feel comfortable to convert into book. You should also integrate recommendations. Disease the example of an everyone. Does it make recommendations on the home page. With the recommendation for you to make recommendations. But what you have been nearly Eugene before. This is a recent stories make your recommendations. About the purchase letter on making and probably get additive product or sell and cross sell and that even make your recommendations. After you went to the website. One off so Jefferson in escapee went to Amazon didn't pressure as a torrent you went back as the website. Six month major A we have going to website I think you've an easy email address you received any airport was seen as a bad farthest for a five year. Kicking Europe rough. Picking a flight. For these stores hub would be can be even at three commending were mentioning this morning. The where mention bay at India and yes hard you can do smart recommendations that typical example where. Today we received two million promotions and have things under messages that shop wasn't as a customer I hope to hit the pyramid. Now. Disease good theory. Hard to put that in practice. How to put that in practice different thing you should do. Is to get customer insight is not because you have a lot of big day down. That you should know capture information from your customer. And especially. I'm Europe sales funnel funds. Does any of you in the room nods its charter and I've already built his chart. This chart is. Armenians Europe customers. Not duet. How many of your customers for the last for a tryst as considerate to your Brent. They're really looked at your prices. So when do your website. How many of your customers. Actually. In this case rented. Your current. Operatives with you. And have you discussed emirates would recommend. This car rental company. To sum up your friends. Do your friends or families. Both in your you have this chart. Hybrids to lead Warren. Aren't. You don't. Yeah below that excel. We talked about that the you don't have is chart. This chart that enables you. To know why you're performing well on the ad and whether you overpricing problem. And Yang this slide and its charter is which wasn't that hard is designed is chart. We made a research. Among the panel. Of people that rented a car. And we has two people. Pocket which of those brands you know just what prompted soul into it gave you see that that. Replay euros were relatively draws one to the other. If you look at the consular Brent. Brown number three. What's much Laura. Brown number three ways on the continent both digital plus another pupil sought out for the people that claim when you find them do you know these giant. A rental car companies said yes I do considers them last time all know. Why. Two reasons one is spontaneous or one S. Disease wages car rental company went into the top the fence when you know they don't. And the loyalty scheme which quite an attractive level. Source of problems there are you wasn't like before oneness and the like loyalty scheme which words. Having an impact of the level of consideration. Because if you looked marked a certain consideration to rent a ratio is a pretty good so as a converting good but the reason why they're. As compared to brand as they were much Laurie dance avoidance was a problem for your it is keen. We're talking about that earlier today and the Barbie brand one S. With the conversion underpriced positioning was good and even potential for increased because we're a much higher in terms of conversion. But the difference try and bad breaks image and why we had why people where. Not recommended for growing from fifteen to 11% error saw nearly. 25% of people we're willing to re commend them. In these games is right about the price of eye injuries. That were recommended that had been oh attributes. Tighter each step you can understand how you're performing. And bonds and that would argue about what ask questions were other reasons young age of Vista so you need to understand yourself fell. Then you can optimise your product French. And to optimise your product in Europe wide set of options. You can go from Isis is always a key questions should they go fop fall package. On the left. Or should they go for full alike are not as on the right. There's no ore bodies and they. Name was no mention here in the middle. It depends on your product range it depends under for a country of purchase is not a single. And so do need to tests. And you're on your way to test the begins to draw. Difference is to do before we've. Customer research but very specific customer research that allows you to know in your execution what would deliver more revenue. One person you're the we did a project forum. And airline. Worse suffering from Don sold. Under medium haul. Activities. And a business travel looks pupil where Don selling. Soul. Moving from business. Tool. Economy plus a to economy products. And they were also losing some of their customers. And asked as. To support them in a redesigning czar product French. So they wanted to know whether this was a bit notable for a package or and I cut more than. They wanted to know hard to build the best packages have the best content in each of them. And also have the optimal price positioning. Because their where. Active on many different groups in Europe from. Competition against straying into competition. Against. Log costs legacy carriers. Are further distance. And they wanted to know not only about. That treasurers. Because you need to understand from people. In this process. Not on visa travellers but that travel manager. Did Trevor manager which has also a big impact. Under travel policy. And what our customer camper urges sorry for the robbery doses to for a manager going to be off the scope. But that's very very important to understand why as a decision makers and to interview since people. Very quickly we went into free phases. First step was to design. All the possible scenarios possible package scenarios possible and I cut scenarios on mixed scenarios. The second critical step where as is customary inside gathering fees. Again we as more customers and prospects. You gonna do Z a wee wee Europe customer database except insurance have been actively keyword. Mini keyboard. Are what your customers and the customers of competition. Travellers and travel managers. So we interviewed in this custom research it up and keep eight father and travellers from the different source market and 300 travel managers. Iron ore type off all these so Shoemaker big change like if it was a case you want to change your product architecturally need to. Tests that is is working on a table fruits. Local any connecting because this airline had wolf local customers and connecting customers saw people grew on me from one city to your they're all connecting to a long. For example. And to do we wanted to desire to optimise its product range. And the prices. Hong Huron is familiar with contract analyses. Contact analyses. Is a way to measure as a venue after defined offer complements. But contact analyse you analyses is not away. To a merger. Customer. You've Europe with by guests. Because in contrite and rises usual ten different screens we'd evolving product for its good to have any of the venue average components. But. Whole would because overreact tool. Three deadly sin -- your way you have three different level off comp pot. To a level on one level like the bottle of wines. You Jen obscenely debt on new ways very. Standup methods like content units specific mine added destined to does that. Until we defined a different scenario than we tested them Oakmont three different samples. Anacin and number two room where braving 2% more average ticket. And 4% additional traffic so additional people with the look for a trend willing to travel with this Alan. We tested in a see me now waking. In the sector on step. A model which was fully back. What we call here branded fares. A mother always. Stand up fares for Europe. A course of reflex. Because Ford Flex and then everything is on top what you select every single item but you need. To make people in the real life situation whether you asked them to work and take what they want or whether don't want. To evaluate their re your performance. And the brand insurance. In these gears was much more profound. For the business travellers. We doctor about that. With the Indonesian deep trouble for condition is much better. To a branded curious why because it's all inclusive. That travel manager us as a perception that again better to Europe is expenses. Is growing more easy view through as a different distribution channels. And all saw it has a preference. As a customer. And contrite analyses for the one of you we're not that is just they're. To add towards a that the content of its of the packages when you have decided whether you 13211. Package. And also why. Isn't there to sell as options on packages who doers screens to embedded value of every single components. To know exactly what really helps me to a certain segment of the third Beckett. And all this goes into. Simulation model. Which enable us to afterwards optimise. Price points and price position in five different type of lead time. Beat out beak situations. It's a long UK. Steady. But the message here until now is that you have methods. Which every customer research combine with zarrella management practices that enables you to test to be far. Any change do you backed off. Product tensions. And last but not least. White has been a re your. What made a big change versus watches sued today. You know our alliance. Instead and other alliance. Is usually half hours those packages defined. Usually he bought. Going to a room. Yep mark team yourselves. Revenue management and I sense self. If we hope to put three packages would quickly put to differentiate them. So if you take bigger as example. To decide if proper entry baggage your fifteen kilos of Saddam twenty fuels the third 125 Gilles. A flood gauge. Enter why don't at least and put as many possible. Elements as. Either thought into packages then ended that we is it a ten elements which where another venue basic customer. Is it really making so different for you as a business traveller to a 1520 or 25 you know when you go for a medium or short haul flight. Clearly not. So what we define hero is packages which more than just had been. Specific content and value we get consistent product offering units were for each of your packages. Appear customer prom rights. And here. You know there's standout economy tickets which has the most affordable way to travel. You under your as a side of the spectrum that business can outages that trouble with the best service level. But the loo products. Which is being launched is the most efficient way to travel. This new product includes the fourth flexibility. But also clear benefits. In done tough efficiency. Entering that France is your aircraft. Growing quickly through security. And lasts jays third the is hot a nice hot optimise myself better. And if you want to deny yourself there alleges is an example for the car rental industry. And G a seller. What did we do. In this case. We froze did analyses. Pocket we yet we had excels and not problem. As job and we did analyses. On where people were falling when you when selecting a car category at GM. Which all other car category or whose fault. You. Where have you been on the website which won on so that's you know for each of the category. Which attractive category. I've been investigated by the customer. Which one is relevant. Ads and had done at. You could disclose that and say on the website. Is set up to get America do want to see Jamar not. Instead of us yellow badly want and this year now by hosted Yamaha AW and aren't. You could does that. You could even put a picture of the of the current but Windsor customer really understand what is a benefit of selecting eases a tentative car category. What we did is far each. Other car category. At each. Couple. Got my nation. It identifies what words he added shop floor venue that were bringing with this specific car. Whether it moss beans whether it more. A fan why diesel model driving pleasure. And so as is given metrics are off which. What you did the first week amended and Diana did and why should be as a slug attached to that we're should be as a model and the curtains and marketing message attached to set. And so on and fun for each of them. In this way. It's time people where selecting. A car category. We prop what them. The right chart a talented guy. And you bric counties that we're here it's weakened outlets. For more space. Yeah now there's a little more sense it stands was clearly funds for into marketing messages. Point number one all right I'll plummeted with the right message. Third. The right right metric. Fits your report they. Do now communicate on the talk a model that it represents but with the that the right level which has the most objective. And last point do that under the same beach. The same page of the one that is making his first choice. Why because if Yassin default screen. Yeah visited a lot is clicking. Indeed clicks on next and then only. Your body you know is a collective. It's much less efficient than if you do that directly in the sunscreen why because it yet that for reception but then. If you do that in two steps. You've made already is decision annoyed you're trying to changes choice. As much as you tender on the same page. The most efficiently due to drive that up. With all there's major us. A sell indeed is I think triple. Higher than what did what before. So. I elect for wasn't the right product and is all right communication message at the right time with the right pricing metrics it's an example of small change. Which ads get have a huge impact so. It's really something that can be Chinese consulate one optimise website but. What are the conclusions. Through its conclusion. Look at your revenue management practices we see is a cure customs. Customer come on man edged a certain degree of complexity and yes perception best. So again. I don't is tripled their analyses. Big did brings huge venue but do not replaced at various customer insight. To feed your pricing strategies or is Bruton know exactly hockey blackbeard in different situation. But if you want to really more strictly structurally changed things you need to work almost into the brain as a customer. To really understand why is year view in one way or the other. Third points. Somebody. Somebody to redefine the bent under organisation. Mostly responsible to checked that pricing strategy is where an executive in self interfaces and monitor its performance. That is free again G lacking in your organisation. So when you bought some time are only looking at a good and the M conversion rates. The donor really always understand. What you're in mean at which your pricing Arctic true. As a very important that somebody India and innovation is responsible for that interject a pricing execution. Thank you.