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Gianni Cataldo, Head of R&D, ATPCO#ATPCOelevate

ned price points with dynamic availabilityPrice Points availableper ItineraryNumber of Prices FiledFrequencyContinuousPricingPre-defined price points withdynamic price adjustmentsFully dynamic price determinationStatic PricingDual RBDQuantumPricingDPE PredefinedPricingDPE GeneratedPricingMin/MaxPricingBid PricingAirlinespre-distribute allprices usingstandard toolsets.Capability toincrease pricepoints by requiringinventory in 2different RBDMore frequentupdates based onautomated pricedetermination andupload APIsDPE determinesoptimal price froma set of defined(pre-distributed)pricesDPE determinesoptimal priceand adjustspre-distributedpriceAirlines distributea min/max range,eliminatingthe need topre- distributeindividual pricesAirlines link theirRevenueManagementsystems directlyto pricedetermination2618226 Millions ––N/A On DemandOn DemandOn Demand#ATPCOelevate

Where we are goingDefineProductAirlineDirect& PEAirline ProfileDynamicOffersBookingRequestALL OFFERS#ATPCOelevate

Gianni CataldoATPCOMarcial LappAmerican Airlines#ATPCOelevateSebastien TouraineIATA

Sebastien TouraineHead of Dynamic Offers, IATA#ATPCOelevate

Dynamic OffersBeyond FaresSebastien TouraineIATA FDS TransformationHead - Dynamic Offers ProjectATPCO Elevate – WashingtonOctober 2019

Airline Retailing Vision towards Offers & OrdersTravelerAirline own atorOffers & OrdersAirline SystemsDynamicOffersOffer ManagementPricing &MerchandisingFlightInventoryFaresAncillaryNDC APIOrder sRevenue ManagementOffersDeliveryFulfilmentAccountingONE OrderStandard

Dynamic Offers: a common Industry definition is criticalPRODUCT of pre-definedbundlesStatic bundles(e.g. fares families orbranded fares)ApStatic flightsand ancillariesicplat ioAbnyilitPre-defined price pointswith dynamic availabilityohfstopopncotringdolncois ttr ibtexeut&ddaotcasffeicenersDynamic Offercreation underIATA AIR visionTransitionalModelsTypical airline'soffers creationPre-defined pricepoints with dynamicprice adjustmentsPRICE determinationFully dynamic pricedetermination

The next chapter in Revenue Management ?1980YieldManagement Capacity control Leg based Fare rulessegmentation2000O&DRevenueManagement Networkoptimization BidPrice DynamicAvailability2020Merchandising Ancillaries Fare familiesDynamicOffers ContinuousPricing Dynamic bundles Total OfferManagement

Marcial Lapp, Managing Director,Revenue Management DevelopmentAmerican Airlines#ATPCOelevate

Revenue Management – Pricing a Single ProductWashington, D.C. à Los Angeles 180 200ORDPHLWashington, D.C. 200 120Los AngelesCLT 120 160PHXDFW 160MIA11

Scale of the Pricing ProblemWe already dynamically price in the airline business.50,000 City Pairs10 Itineraries331 Days180M Price Points12

Airlines increase product segmentationBasic EconomyEconomyMain Cabin ExtraPremiumEconomyDomestic FirstBusinessFlagship FirstAirline Perspective – Allows us to compete with a myriad of carrier-business-models.Customer Perspective – Provides the customer with the attributes they value in our service.

Scale of the Pricing Problem ctd.We include additional products for each of the seats on our aircraft50,000 City Pairs7 Products10 Itineraries100 seats331 Days115b Priced SeatsUse of Optimization, Fare Automation, APIs for Product Fulfilment14

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Yield Management Dynamic Offers Network optimization BidPrice Dynamic Availability Ancillaries . segmentation 1980 2000 2020. #ATPCOelevate Marcial Lapp, Managing Director, Revenue Management Development American Airlines. Revenue Management - Pricing a Single Product 11 Washington, D.C. à Los Angeles Los Angeles Washington, D .