REVENUE DRIVEN SPLITTING OF GROUP TRAVEL REQUESTS INTO MULTIPLE SUBGROUPS

• US 20140067435A1
• Filed: 08/30/2012
• Published: 03/06/2014
• Est. Priority Date: 08/30/2012
• Status: Abandoned Application

• Current Assignee: Amadeus (Amadeus Global Travel Distribution S.A.)
• Original Assignee: Amadeus (Amadeus Global Travel Distribution S.A.)
• Inventors: Singer, Joel, Hasnas, Sergiu, De La Crouee, Rmi, Bareges, Matthieu, Cany, Benjamin
• Application Number:
  US13/598,809
• Publication Number:
  US 20140067435A1
• Time in Patent Office: Days
• US Class Current: 705/5
• CPC Class Codes: G06Q 10/02 Reservations, e.g. for tickets, services or events
• CPC Class Codes: G06Q 50/14 Travel agencies

Abstract

A method, apparatus and program product utilize a revenue driven approach to split a group travel request into multiple subgroups. By doing so, group travel requests that might otherwise be rejected due to lack of availability for a certain quantity of travelers, or that might otherwise present a significant risk of lost revenue due to last minute cancellations that preclude reallocation to individual bookings, may be split into multiple subgroups in a manner that optimizes expected revenue for a travel provider. In addition, a method, apparatus and program product integrate a group quote component or module into an inventory system to facilitate the generation of group quotes based at least in part on a displacement cost for a reference travel provider that is reflective of the displacement of a group quantity from individual bookings.

Claims

1. A computer-implemented method for processing a group travel request for air travel by a group between an origin and a destination, the method comprising:

receiving the group travel request from an originator, wherein the group travel request identifies the origin, the destination, a date criterion and a quantity for the group;

determining whether to perform a group split operation based upon the group travel request and a group split acceptance rule;

in response to determining to perform a group split operation, accessing at least one of a schedule system and an inventory system for the airline to identify a set of travel solutions matching the group travel request and having a group availability matching a minimum subgroup quantity criterion, including ranking each travel solution in the set of travel solutions based upon at least one of a group proportion selection rule associated with a proportion of an inventory of such travel solution allocated to groups, a materialization rate rule associated with a materialization rate of the originator of the group travel request, and an expected load factor rule associated with an expected load factor of such travel solution;

splitting the group travel request among a plurality of travel solutions in the set of travel solutions to allocate a subgroup quantity to each travel solution in the set of travel solutions, including;

accessing revenue data from a revenue system for the airline;

determining from the revenue data a unitary displacement cost for at least a portion of the inventory of each travel solution in the set of travel solutions, wherein the unitary displacement cost is associated with an opportunity cost for allocating an inventory item for a travel solution to the group travel request instead of allocating the inventory item to an individual booking;

adjusting the unitary displacement cost for the portion of the inventory of each travel solution using an adjustment factor based upon at least one adjustment rule to generate an adjusted displacement cost for the portion of the inventory of each travel solution; and

determining the subgroup quantity for each of the plurality of travel solutions based upon the adjusted displacement cost for the portion of the inventory of each travel solution to optimize an aggregated displacement cost among the plurality of travel solutions; and

responding to the group travel request by returning the subgroup quantity for each of the plurality of travel solutions;

wherein accessing the schedule system, the inventory system and the revenue management system minimizes database transactions.

2. A computer-implemented method for processing a group travel request for travel with a travel provider, comprising:

determining a set of travel solutions that match a group travel criterion for the group travel request and a travel provider criterion for the travel provider, wherein the group travel criterion includes a group quantity for the group travel request; and

splitting the group quantity into a plurality of subgroup quantities respectively allocated to travel solutions from the set of travel solutions to optimize expected revenue of the travel provider resulting from displacement of the group quantity from individual bookings.

3. The method of claim 2, wherein splitting the group quantity includes retrieving revenue data from a revenue management system and determining from the revenue data a displacement cost for at least a portion of the inventory of each travel solution in the set of travel solutions, wherein the displacement cost is associated with an opportunity cost for allocating an inventory item for a travel solution to the group travel request instead of allocating the inventory item to an individual booking.

4. The method of claim 3, wherein the revenue data includes yield data for each travel solution in the set of travel solutions, and wherein determining the displacement cost includes determining the displacement cost for at least one booking class in each travel solution in the set of travel solutions based upon the yield data.

5. The method of claim 4, wherein splitting the group quantity further includes allocating the group quantity to booking classes in the set of travel solutions in order of increasing displacement costs and based on group availability for the booking classes in the set of travel solutions, wherein the group availability is associated with a quantity of inventory items in a booking class that is available for group allocation.

6. The method of claim 4, wherein determining the displacement cost further includes:

determining from the yield data a unitary displacement cost for the at least one booking class in each travel solution in the set of travel solutions, wherein the unitary displacement cost is associated with an expected revenue for a sale of an inventory item in an associated booking class to an individual passenger; and

adjusting the unitary displacement cost for the at least one booking class in each travel solution using an adjustment factor to generate an adjusted displacement cost for the at least one booking class in each travel solution, wherein the adjustment factor is based on at least one factor selected from the group consisting of departure market, arrival market, start date, end date, expected load factor for a cabin associated with such travel solution, materialization rate of an originator of the group travel request, and a point of sale of the originator.

7. The method of claim 3, wherein the revenue data includes bid price data for a plurality of inventory items in each travel solution in the set of travel solutions, and wherein determining the displacement cost includes determining the displacement cost for each of the plurality of inventory items in each travel solution in the set of travel solutions based upon the bid price data.

8. The method of claim 7, wherein splitting the group quantity further includes allocating the group quantity to the subgroup quantities allocated to the travel solutions in the set of travel solutions in order of increasing displacement costs and based on group availability for each travel solution in the set of travel solutions, wherein the group availability is associated with a quantity of inventory items in a travel solution that is available for group allocation.

9. The method of claim 8, further comprising, in response to a subgroup quantity for a first travel solution in the set of travel solutions being less than a minimum subgroup quantity:

determining a first distribution cost for redistributing of the subgroup quantity for the first travel solution to other travel solutions in the set of travel solutions;

determining a second distribution cost for distributing additional group available inventory items from other travel solutions in the set of travel solutions to the first travel solution;

redistributing the subgroup quantity for the first travel solution to at least one other travel solution in the set of travel solutions if the first distribution cost is lower than the second distribution cost; and

distributing additional group available inventory items from at least one other travel solution in the set of travel solutions to the first travel solution if the second distribution cost is lower than the first distribution cost.

10. The method of claim 7, wherein determining the displacement cost further includes:

determining from the bid price data a unitary displacement cost for each of the plurality of inventory items in each travel solution in the set of travel solutions, wherein the unitary displacement cost is associated with a expected revenue for a sale of an associated inventory item to an individual passenger; and

adjusting the unitary displacement cost for each of the plurality of inventory items in each travel solution using an adjustment factor to generate an adjusted displacement cost for each of the plurality of inventory items in each travel solution, wherein the adjustment factor is based on at least one factor selected from the group consisting of departure market, arrival market, start date, end date, expected load factor for a cabin associated with such travel solution, materialization rate of an originator of the group travel request, and a point of sale of the originator.

11. The method of claim 2, wherein determining the set of travel solutions includes:

determining a plurality of travel solutions that match the group travel criterion; and

determining the set of travel solutions from the plurality of travel solutions based upon the travel provider criterion.

12. The method of claim 11, wherein the group travel criterion includes at least one group travel parameter selected from the group consisting of origin, destination, a date parameter, a schedule flexibility parameter, a route flexibility parameter, a minimum subgroup quantity and the group quantity.

13. The method of claim 11, wherein determining the set of travel solutions further includes discarding a travel solution having a group availability that is less than a minimum subgroup quantity associated with the group travel request.

14. The method of claim 11, wherein determining the set of travel solutions from the plurality of travel solutions includes:

accessing inventory data from an inventory system; and

applying at least one of a group proportion criterion, a materialization rate criterion, an expected load factor criterion and an acceptance criterion to discard at least one travel solution from the plurality of travel solutions.

15. The method of claim 14, wherein applying the at least one of the group proportion criterion, the materialization rate criterion, the expected load factor criterion and the acceptance criterion includes generating a composite ranking for each travel solution in the plurality of travel solutions based upon the group proportion criterion, the materialization rate criterion, the expected load factor criterion and the acceptance criterion.

16. The method of claim 2, further comprising determining whether to perform a group split operation for the group travel request based upon a group split acceptance criterion, wherein the group split acceptance criterion is based on at least one of a group travel parameter and a travel provider parameter.

17. The method of claim 16, manually intervening in response to a determination to not perform the group split operation in response to input received from a representative of the travel provider.

18. The method of claim 2, further comprising:

receiving the group travel request from an originator through a user interface; and

returning to the originator through the user interface a response comprising information data representative of the travel solutions to be used to accommodate the request, the subgroup quantity to be assigned to each such travel solution, and a quote amount for accommodating the request.

19. The method of claim 2, wherein determining the set of travel solutions and splitting the group quantity into the plurality of subgroup quantities are performed using a set of business rules defined by the travel provider.

20. An apparatus, comprising:

at least one processor; and

program code configured upon execution by the at least one processor to process a group travel request for travel with a travel provider by determining a set of travel solutions that match a group travel criterion for the group travel request and a travel provider criterion for the travel provider, wherein the group travel criterion includes a group quantity for the group travel request, and splitting the group quantity into a plurality of subgroup quantities respectively allocated to travel solutions from the set of travel solutions to optimize expected revenue of the travel provider resulting from displacement of the group quantity from individual bookings.

21. The apparatus of claim 20, wherein the program code is resident in a group split component, the apparatus further comprising:

an inventory system configured to provide real-time inventory data to the group split component;

a business rules system configured to manage a plurality of business rules, wherein the group split component is configured to determine the set of travel solutions and split the group quantity based upon at least one business rule managed by the business rules system;

a revenue management system configured to provide revenue data to the group split component;

a schedule system configured to provide candidate travel solutions to the group split component; and

a user interface configured to receive the group travel request from an originator and output the plurality of subgroup quantities to the originator.

22. The apparatus of claim 21, wherein the group split component is configured to minimize database transactions when accessing the schedule system, the inventory system and the revenue management system.

23. A program product, comprising:

a computer readable medium; and

program code stored on the computer readable medium and configured upon execution by at least one processor to process a group travel request for travel with a travel provider by determining a set of travel solutions that match a group travel criterion for the group travel request and a travel provider criterion for the travel provider, wherein the group travel criterion includes a group quantity for the group travel request, and splitting the group quantity into a plurality of subgroup quantities respectively allocated to travel solutions from the set of travel solutions to optimize expected revenue of the travel provider resulting from displacement of the group quantity from individual bookings.

24. A computer-implemented method for processing a group travel request for a reference travel provider, the method comprising:

receiving a group travel request that identifies a group quantity and at least one segment; and

using program code resident in an inventory system for the reference travel provider, determining a group quote for the group travel request based upon a displacement cost, wherein the displacement cost is based upon displacement of the group quantity from individual bookings.

25. The method of claim 24, wherein determining the group quote includes:

determining a group segment quote for each of a plurality of segments identified by the group travel request; and

determining the group quote by summing the group segment quotes.

26. The method of claim 25, wherein a first segment among the plurality of segments is a reference travel provider segment, and wherein determining the group segment quote for the first segment includes:

accessing current inventory data and revenue data associated with the first segment; and

determining a displacement cost for the first segment using the current inventory data and revenue data.

27. The method of claim 26, wherein determining the group segment quote for the first segment further includes adjusting the displacement cost by an adjustment factor.

28. The method of claim 27, wherein adjusting the displacement cost by the adjustment factor includes accessing a business rule.

29. The method of claim 27, wherein the adjustment factor is based upon at least one of market origin of the first segment, market destination of the first segment, departure date of the first segment, day of the week of the first segment'"'"'s departure date, operating airline of the first segment, flight number, requested cabin, expected final load factor of the first segment, expected final load factor of a cabin of the first segment, the group quantity, point of sale of a requestor of the group travel request, historical and forecast materialization rate of the requestor, type of trip, origin and destination of a full trip, and at least one other segment among the plurality of segments.

30. The method of claim 29, wherein the adjustment factor is selected from the group consisting of an absolute modifier, a proportional modifier, and a minimum quote.

31. The method of claim 25, wherein determining the group segment quote for a first segment among the plurality of segments is based upon an interline agreement between the reference travel provider and another travel provider.

32. The method of claim 31, wherein determining the group segment quote for the first segment includes accessing at least one business rule to map a cabin for the other travel provider to a cabin for the reference travel provider, wherein the business rule is based upon at least one of a connecting airline code, a market origin, a market destination, a flight number and a date.

33. The method of claim 31, wherein determining the group segment quote for the first segment includes accessing at least one business rule to define a fare agreed between the reference travel provider and the other travel provider, wherein the business rule is based upon at least one of a connecting airline, a market origin, a market destination, a flight number and a date.

34. The method of claim 25, wherein the plurality of segments includes a first, reference travel provider segment and a second segment associated with another travel provider, wherein determining the group segment quote for the first segment includes determining a displacement cost for the first segment based upon current inventory data and revenue data for the reference travel provider, and wherein determining the group segment quote for the second segment is based on an interline agreement between the reference travel provider and the other travel provider.

35. The method of claim 34, wherein determining the group segment quotes for the first and second segments are performed using a set of business rules defined by the travel provider.

36. The method of claim 25, further comprising performing an availability check for each reference travel provider segment among the plurality of segments based upon current inventory data in the inventory system.

37. The method of claim 24, wherein determining the group quote for the group travel request includes determining the displacement cost based upon current inventory data stored in the inventory system and upon revenue data maintained in the inventory system and retrieved by the inventory system from a revenue system.

38. An apparatus, comprising:

at least one processor; and

program code configured upon execution by the at least one processor to process a group travel request for a reference travel provider, wherein the program code is resident in an inventory system and is configured to determine a group quote for a group travel request based upon a displacement cost, wherein the group travel request identifies a group quantity and at least one segment, and wherein the displacement cost is based upon displacement of the group quantity from individual bookings.

39. The apparatus of claim 38, wherein the program code is configured to determine the group quote by determining a group segment quote for each of a plurality of segments identified by the group travel request, and determining the group quote by summing the group segment quotes.

40. The apparatus of claim 39, wherein a first segment among the plurality of segments is a reference travel provider segment, and wherein the program code is configured to determine the group segment quote for the first segment by accessing current inventory data and revenue data associated with the first segment and determining a displacement cost for the first segment using the current inventory data and revenue data.

41. The apparatus of claim 40, wherein the program code is configured to determine the group segment quote for the first segment further by adjusting the displacement cost by an adjustment factor, wherein the adjustment factor is based upon at least one of market origin of the first segment, market destination of the first segment, departure date of the first segment, day of the week of the first segment'"'"'s departure date, operating airline of the first segment, flight number, requested cabin, expected final load factor of the first segment, expected final load factor of a cabin of the first segment, the group quantity, point of sale of a requestor of the group travel request, historical and forecast materialization rate of the requestor, type of trip, origin and destination of a full trip, and at least one other segment among the plurality of segments, and wherein the adjustment factor is selected from the group consisting of an absolute modifier, a proportional modifier, and a minimum quote.

42. The apparatus of claim 39, wherein the program code is configured to determine the group segment quote for a first segment among the plurality of segments based upon an interline agreement between the reference travel provider and another travel provider.

43. A program product, comprising:

a computer readable medium; and

program code stored on the computer readable medium and configured upon execution by at least one processor to process a group travel request for a reference travel provider, wherein the program code is resident in an inventory system and is configured to determine a group quote for a group travel request based upon a displacement cost, wherein the group travel request identifies a group quantity and at least one segment, and wherein the displacement cost is based upon displacement of the group quantity from individual bookings.