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AWS Solutions Library

Guidance for Dynamic Pricing for Airlines on AWS

Generate near real-time pricing offers for individual or packaged airline content

Overview

This Guidance demonstrates how airline companies can use data analysis and new artificial intelligence and machine learning (AI/ML) capabilities to dynamically adjust pricing and personalize product offerings for their customers. In the travel and hospitality industry specifically, organizations want to optimize their pricing strategies. And with a business climate that’s constantly shifting, dynamic pricing is uniquely valuable to help companies increase personalization, adjust pricing, and offer products with new AI/ML capabilities. With dynamic pricing, airlines can increase sales and profit margins while maintaining customer satisfaction. The AI/ML services in this Guidance can also be trained to generate incremental revenue and prevent revenue dilution.

How it works

These technical details feature an architecture diagram to illustrate how to effectively use this solution. The architecture diagram shows the key components and their interactions, providing an overview of the architecture's structure and functionality step-by-step.

Download the architecture diagram

Well-Architected Pillars

The architecture diagram above is an example of a Solution created with Well-Architected best practices in mind. To be fully Well-Architected, you should follow as many Well-Architected best practices as possible.

This Guidance can be scripted using an AWS CloudFormation template. You can then add CloudFormation templates to your own development pipeline and deploy them in your cloud environment. Using Amazon CloudWatch, you can get observability with level metrics and personalize dashboards and logs. 

Read the Operational Excellence whitepaper

All data is fully encrypted in transit and in storage, with least privilege AWS Identity and Access Management (IAM) roles in place for all service interactions on the environment state and pricing agent environments. Exposed APIs are only exposed to authorized users and integrate into existing on-premises or cloud-hosted solutions by clearly defined network paths with no public internet exposure.

Read the Security whitepaper

The use of serverless throughout the solution ensures high availability across the deployed AWS Region. All components scale automatically and the account limits should be clearly defined for the supported product range. 

Read the Reliability whitepaper

Serverless architectures help to provision the exact resources that the workload needs. Strategies are in place for storage lifecycle management and ensuring auto capacity scaling is used for ingestion and read and write access patterns.

Read the Performance Efficiency whitepaper

This Guidance is designed to be fully optimized for cost, only using resources where necessary and only accessing data using the services appropriate for the business need. All costs should align with the defined goals for pricing and clearly defined KPIs for managing batch compared with real time requirements to ensure the optimum value benefits.

Read the Cost Optimization whitepaper

By extensively using managed services and dynamic scaling, we minimize the environmental impact of the backend services. This should be monitored to ensure that assets such as data are stored in the optimum solution based on the read and write access patterns, with close attention to scaling of compute resources closely aligned to the booking demand.

Read the Sustainability whitepaper

Disclaimer

The sample code; software libraries; command line tools; proofs of concept; templates; or other related technology (including any of the foregoing that are provided by our personnel) is provided to you as AWS Content under the AWS Customer Agreement, or the relevant written agreement between you and AWS (whichever applies). You should not use this AWS Content in your production accounts, or on production or other critical data. You are responsible for testing, securing, and optimizing the AWS Content, such as sample code, as appropriate for production grade use based on your specific quality control practices and standards. Deploying AWS Content may incur AWS charges for creating or using AWS chargeable resources, such as running Amazon EC2 instances or using Amazon S3 storage.