WO2002086671B1 - System and method for travel carrier contract management and optimization - Google Patents

System and method for travel carrier contract management and optimization

Info

Publication number
WO2002086671B1
WO2002086671B1 PCT/US2002/012551 US0212551W WO02086671B1 WO 2002086671 B1 WO2002086671 B1 WO 2002086671B1 US 0212551 W US0212551 W US 0212551W WO 02086671 B1 WO02086671 B1 WO 02086671B1
Authority
WO
WIPO (PCT)
Prior art keywords
data
price
carrier
spend
client
Prior art date
Application number
PCT/US2002/012551
Other languages
French (fr)
Other versions
WO2002086671A3 (en
WO2002086671A2 (en
Inventor
Olivier B Sauser
Florio Dionino D Di
Original Assignee
American Express Travel Relate
Priority date (The priority date is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the date listed.)
Filing date
Publication date
Application filed by American Express Travel Relate filed Critical American Express Travel Relate
Priority to AU2002258901A priority Critical patent/AU2002258901B2/en
Priority to EP02728879A priority patent/EP1386237A4/en
Priority to CA002443959A priority patent/CA2443959A1/en
Publication of WO2002086671A2 publication Critical patent/WO2002086671A2/en
Publication of WO2002086671A3 publication Critical patent/WO2002086671A3/en
Publication of WO2002086671B1 publication Critical patent/WO2002086671B1/en

Links

Classifications

    • GPHYSICS
    • G06COMPUTING; CALCULATING OR COUNTING
    • G06QINFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q10/00Administration; Management
    • G06Q10/04Forecasting or optimisation specially adapted for administrative or management purposes, e.g. linear programming or "cutting stock problem"
    • GPHYSICS
    • G06COMPUTING; CALCULATING OR COUNTING
    • G06QINFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q10/00Administration; Management
    • G06Q10/02Reservations, e.g. for tickets, services or events
    • GPHYSICS
    • G06COMPUTING; CALCULATING OR COUNTING
    • G06QINFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q10/00Administration; Management
    • G06Q10/02Reservations, e.g. for tickets, services or events
    • G06Q10/025Coordination of plural reservations, e.g. plural trip segments, transportation combined with accommodation
    • GPHYSICS
    • G06COMPUTING; CALCULATING OR COUNTING
    • G06QINFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q10/00Administration; Management
    • G06Q10/06Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling
    • G06Q10/063Operations research, analysis or management
    • G06Q10/0637Strategic management or analysis, e.g. setting a goal or target of an organisation; Planning actions based on goals; Analysis or evaluation of effectiveness of goals
    • G06Q10/06375Prediction of business process outcome or impact based on a proposed change
    • GPHYSICS
    • G06COMPUTING; CALCULATING OR COUNTING
    • G06QINFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q10/00Administration; Management
    • G06Q10/10Office automation; Time management
    • GPHYSICS
    • G06COMPUTING; CALCULATING OR COUNTING
    • G06QINFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q30/00Commerce
    • G06Q30/02Marketing; Price estimation or determination; Fundraising
    • G06Q30/0283Price estimation or determination

Abstract

A method and system for air carrier contract management and optimization is disclosed. In particular, the present invention receives and tracks client travel data (105) and air carrier contract data (100), analyzes this data (110) and configures the data structure to be used in a goal programming algorithm to determine an optimum travel carrier solution (115).

Claims

30AMENDED CLAIMS[received by the International Bureau on 20 February 2003 (20.02.03); Original claims 1-26 replaced by new claims 1-26 (5 pages)]
1. A travel carrier contract management and optimization method, comprising the steps of: providing a host system for facilitating a travel optimization model; receiving contract data relating to at least one travel carrier contract; receiving client data associated with a client; associating said contract data with said client data to facilitate a spend share shift analysis; generating program constraints from said client data and said contract data; and performing the spend share shift analysis on said constraints to optimize travel carrier contracting in order to optimize client spend, wherein said spend share shift analysis includes determining a desired ticket price, wherein said ticket price comprises at least one of a calculated potential price and a base price.
2. The method of claim 1 , wherein said performing step further comprises configuring an analytical solutions software program to facilitate said spend share shift analysis.
3. The method of claim 2, wherein said analytical solutions software is selected from a group of software solutions consisting of SAS, SPSS, STATA, MINITAB, atlab, and Mathematica.
4. The method of claim 1 , further comprising the step of creating an objective function to evaluate the constraints, wherein said objective function is configured to facilitate the optimization of client spend.
5. The method of claim 1 , further comprising the step of generating a penalty function, wherein said penalty function is configured to evaluate at least one of the carrier seat capacity, flight frequency, or direct/indirect flight routes.
6. The method of claim 1 , further comprising the step of configuring one or more price weighting factors. 31
7. The method of claim 1 , wherein the base price comprises a discounted price.
8. The method of claim 1 , further comprising the step of evaluating the average sector price by at least one of: travel carrier, class of service, route, country of ticketing, or airline contract conditions.
9. The method of claim 1 , wherein said constraints comprise one or more of the following: segment data, class of service data, airport pair data, sector data, travel carrier, client spend, market share, and any key value indicator derived from client spend and sectors.
10. The method of claim 9, wherein said sector data constraint comprises travel carrier data, airport pair data, ticket origin data and class of service data.
11. The method of claim 10, further comprising the step of configuring a constraint by adding a series of sectors.
12. The method of claim 1 , further comprising the step of fixing a ticket price.
13. The method of claim 1 , wherein said potential price comprises the ticket price as a function of the number of tickets assigned to a specific travel carrier.
14. The method of claim 1 , further comprising the step of configuring a penalty function constraint; wherein said penalty function constraint limits air carrier value according to travel factors.
15. The method of claim 14, wherein said travel factors includes one or more of the following: maximum potential capacity per sector, quality of service, and availability of direct connections.
16. The method of claim 1 , further comprising the step of benchmarking said optimal solution with original solution to compute incremental savings.
17. The method of claim 1 , wherein said client data is received from a travel agency system.
18. The method of claim 1 , wherein said contract data is received from a travel carrier system.
19. A method for facilitating travel carrier optimization comprising the steps of: receiving data from a set of input parameters; facilitating data quality control processing on said data; preparing said data by subtracting rebates from spend to compute a base net-sector price; defining constraint cells by at least one of airport pairs, class of service or ticket currency of origin; calculating global monetary rebate on said cells; computing global base spend; building constraints from at least a portion of said data; wherein upper or lower limits are added to establish the spend or sector for each carrier; deriving a maximum potential number of sectors; excluding the lowest value cells from a ticket data set; calculating a maximum potential limit correction for each travel carrier and cell; facilitating data quality controls, wherein low ticket prices are removed or the average sector price is adjusted to a mean value; adding a sector filters data set; adding a spend filters data set; and executing a goal programming processor to determine an optimal solution. 33
20. The method of claim 19, further comprising the steps of: adding original data from the client data set to said optimal solution to facilitate a report; assigning a potential ticket price to the appropriate travel carrier, wherein said potential ticket price is computed considering the potential rebate due to a strong share shift of the current travel carrier; assigning an actual base ticket price to the appropriate travel carrier for each cell where a goal programming algorithm is minimized; adding previously excluded sectors with low spend to said optimal solution; and preparing said report.
21. The method of claim 20, further comprising the steps of: facilitating a benchmark for the optimization, wherein an optimal solution benchmark is created; computing an air carrier flights distribution; and estimating the percentage of segments excluded from optimization.
22. A system for facilitating travel carrier contract management, comprising: a data acquisition component for facilitating the acquisition of contract data and client data; a data quality engine configured to facilitate the quality and integrity of said contract data and said client data; a processing component for facilitating an analysis of said contract data and said client data to achieve an optimized result; a reporting component for facilitating reporting said optimized result; and result data tables configured to store data for the results of said analysis of said contract data and said client data. 34
23. The system of claim 22, further comprising a data storage component to facilitate hosting a client data directory, a contracts directory, a relational data directory, and an aggregated data set directory.
24. The system of claim 22, further comprising a sector constraint, wherein said sector constraint is a four-dimensional constraint comprising an air carrier, an airport pair, a ticket origin, and a class of service.
25. The system of claim 22, wherein said result data tables comprise a benchmark summary table, an air carrier summary table, a benchmark table and a solutions table.
26. The system of claim 25, wherein said benchmark summary table includes a data set that represents the optimized result.
PCT/US2002/012551 2001-04-20 2002-04-22 System and method for travel carrier contract management and optimization WO2002086671A2 (en)

Priority Applications (3)

Application Number Priority Date Filing Date Title
AU2002258901A AU2002258901B2 (en) 2001-04-20 2002-04-22 System and method for travel carrier contract management and optimization
EP02728879A EP1386237A4 (en) 2001-04-20 2002-04-22 System and method for travel carrier contract management and optimization
CA002443959A CA2443959A1 (en) 2001-04-20 2002-04-22 System and method for travel carrier contract management and optimization

Applications Claiming Priority (2)

Application Number Priority Date Filing Date Title
US28552901P 2001-04-20 2001-04-20
US60/285,529 2001-04-20

Publications (3)

Publication Number Publication Date
WO2002086671A2 WO2002086671A2 (en) 2002-10-31
WO2002086671A3 WO2002086671A3 (en) 2003-03-27
WO2002086671B1 true WO2002086671B1 (en) 2004-04-08

Family

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US (2) US7286998B2 (en)
EP (1) EP1386237A4 (en)
AU (1) AU2002258901B2 (en)
CA (1) CA2443959A1 (en)
WO (1) WO2002086671A2 (en)

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US7286998B2 (en) 2007-10-23
US20060212320A1 (en) 2006-09-21
AU2002258901B2 (en) 2007-03-29
US7313548B2 (en) 2007-12-25
CA2443959A1 (en) 2002-10-31
EP1386237A4 (en) 2007-10-17
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US20020194038A1 (en) 2002-12-19

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