Southwest is partnering with a tech company whose platform offers customers incentives to switch off of high-demand and overbooked flights.
The airline said this week that it is deploying Volantio’s artificial intelligence-powered “Re-Commerce Platform” to help fill more seats on existing flights. The technology is expected to deliver increased revenue in the post-booking period, improving the carrier’s overall profitability.
“Volantio’s innovative platform creates new ways to recognize and reward travelers, while also strengthening our revenue performance in the post-booking window,” Matt Louis, Southwest’s vice president of revenue management, said in a news release. “It’s a true win-win for both Southwest and our customers.”
The Re-Commerce Platform identifies peak flights up to seven days before departure and offers customers the chance to move to alternative confirmed flights in exchange for rewards. The service is free to use for all Southwest customers.
Volantio’s platform is already used by a number of airlines, including Alaska Airlines, Air Canada, and Qantas. Alaska’s chief financial officer has said the tool drives “well over $20 million in impact per year.”
“Post-booking revenue management represents an exciting source of incremental value for airlines, and what makes it unique is that everyone wins,” Azim Barodawala, Volantio’s CEO and co-founder, said in a statement. “Travelers gain more choice and rewards, while airlines unlock greater efficiency and effectiveness.”
