Price attribute - the new enhancement of NetLine/Plan
Lufthansa Systems is the first and only provider to introduce a so-called price attribute to support strategic network planning. This innovative concept takes account of how ticket prices affect passenger decisions for or against particular routes. By incorporating this information in their long-term network planning, airlines can optimize their overall pricing policy while ensuring the profitability of their flight plan.
The newly introduced price attribute reveals how important the ticket price is to passengers compared to the quality of the flight plan. Are passengers willing to pay a higher price to reach their destination more quickly and conveniently? Or does the desire to save money mean that they will fly only if they can get a good price, even if the flight plan is comparatively unattractive?
The price attribute of NetLine/Plan responds to these questions vital for strategic network planning. It analyzes passenger preferences on the basis of historic data and estimates customer behavior. In doing so, this innovative tool, which was developed in cooperation with the University of Augsburg, resorts to state-of-the-art mathematical methods.
With the integration of the price attribute, the overhaul of the proven network planning solution NetLine/Plan has been completed. Milestones representing the major product development include a new user interface as well as the integration of affordable data sources making real network planning possible for airlines of all sizes.
