– Enhancing Ancillary Revenue: Sabre Unveils AI-Driven Airline Retail Solution

Ancillaries play an increasingly vital role in ensuring the financial stability and resilience of airlines. Sabre has introduced a new product called Upgrade IQ, which harnesses the capabilities of artificial intelligence (AI) and machine learning (ML) to optimize premium cabin inventory for airlines, leading to additional revenue opportunities.

In collaboration with a Skift partner, Sabre has developed Upgrade IQ, an AI-powered retailing solution that is PSS agnostic, allowing seamless integration with any airline’s existing passenger service system. This innovative product leverages advanced AI/ML technology provided by Sabre Travel AI, enabling passengers to bid for upgrades to higher cabin classes at any stage before their journey.

Significance of Upgrade IQ

• Ancillaries and mileage programs now contribute significantly more to the revenue of full-service carriers than traditional ticket sales.
• Airlines are seeking to diversify revenue sources by utilizing AI/ML to identify smarter ancillary revenue streams and enhance personalized customer experiences.
• Upgrade IQ empowers airlines to efficiently manage seat upgrades, thereby maximizing revenue through the sale of unsold premium cabin seats.
• By tailoring upgrade offers to individual customers, airlines can experience a substantial increase in incremental revenue.

Operational Mechanism

• Upgrade IQ, a component of Sabre’s Retail Intelligence suite, incorporates Sabre Travel AI technology developed in partnership with Google.
• By analyzing real-time contextual airline data, the platform employs Sabre’s AI/ML models to produce comprehensive analytics, determining optimal upgrade prices ranging from initial bids to minimum and maximum values.
• This results in personalized upgrade proposals delivered across various touchpoints such as in-app notifications, website prompts, email communications, and during check-in processes.
• Furthermore, Sabre has collaborated with HTS (Hopper Technology Solutions) to integrate their top-tier bidding platform, streamlining the customer experience and minimizing friction.

Insights from Sabre

• Garry Wiseman, Sabre’s chief product and technology officer, highlights the significance of strategic partnerships in driving innovation and rapid product development. Through collaborations with Google and HTS, Sabre has successfully introduced a cutting-edge retailing solution to assist airlines in optimizing seat upgrades and enhancing customer interactions. The positive feedback from airline clients underscores the value of this collaborative approach.