Farelogix Offers Customized Fare Bundles

Airlines can create dynamic service bundles using a new solution embedded in Farelogix’ FLX Merchandise, according to company CEO Jim Davidson.

Each airline can determine the types of bundles it offers and the conditions under which they’re offered.

“They can be based on who I work for, where I’m going, kids or no kids,” Davidson said.

For example, a corporation can negotiate with an airline for its own branded “convenience” bundle that might include a fast-lane screening, priority boarding and inflight wi-fi.

A “comfort” bundle could include noise-cancelling headphones, pillow, blanket and a premium comfort seat.

Tailored pricing
Bundle prices can be adjusted according to the passenger’s status with the airline.

The possibilities are not limited to the business travel market, Davidson said.
 
An airline could offer a “party” bundle for events such as New Year’s Eve or the Super Bowl. A family traveling with children might appreciate a bundle that includes free checked bags, advance seat selection that ensures they can sit together and the airline’s version of a “happy meal.”

The airline can also manage the inventory, Davidson said. For example, if a bundle normally includes extra legroom seats but those seats are sold out, another perk could be substituted.

Build your own
While bundles themselves are not new to travelers, Davidson said a “build your own bundle” option is probably unique in the industry.

“The airline can allow the customer to pick any three out of five services at a bundled price,” he said.

The bundles can also be used in customer recovery situations such as missed connections. An offer of lounge access and an upgrade on the next flight could be pushed to the passenger’s mobile device.
 
Showcasing airline creativity
The flexibility of the solution enables airlines to show off their merchandising creativity and test-market the types of bundles most attractive to various customer segments, from football fans to spa aficionados, Davidson said.

 “We went from change fees to bag fees to seat fees. Now we’re getting to services,” he said.

The new functionality is available to any license holder of the FLX Merchandise product (FMS2). Davidson said it’s already being used by one of the largest global airlines on its website.

It can be used underneath any channel, including a GDS, he added.

The airline would expose it as an API to the GDS, which would need a platform on which to display and sell it.

The bundling feature complies with the New Distribution Capability (NDC), the technical standard being developed by IATA.

That’s hardly surprising, given that the basic set of XML messages with which IATA is working originated with Farelogix.

Davidson said the feature also is in line with the “vision” for NDC.