Chile-based Airnguru wants to enter PH market

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AFTER a congressional move to review the franchises of two major airlines due to poor services and high fares, Chile-based pricing intelligence company Airnguru is keen on entering the Philippine market to address issues hounding the aviation industry.

“We are drawn to the Philippine airline market because of its increasing dynamics and the Philippines’ increasing importance as a business hub,” Airnguru Co-founder and Chief Executive Officer Sergio Mendoza told The Manila Times in an e-mail interview.

“Airlines throughout Southeast Asia are facing significant competitive pressure, and we believe that Airnguru’s pricing intelligence tools can help them compete and price their product more effectively,” he said.

Last month, House Majority Leader Rodolfo C. Fariñas said the franchises of Cebu Pacific and Philippine Airlines should be reviewed in the face of high fares and long-delayed flights.


“Tell your corporate bosses that I will review your franchise. We can amend your franchise anytime. You make a killing, and we are at your mercy. You are taking advantage of the riding public,” Fariñas told representatives of the companies.

Pricing errors can really be expensive, and may cost millions of dollars a year in market share and revenue dilution, Mendoza noted.

“Accurate pricing is a challenge for airlines all over the world. Price too high, you lose customers and market share. Price too low, and you’ll eventually go out of business,” he said.

“To establish an optimal fare structure, an airline needs massive amounts of information about competitor pricing actions, market conditions, competitors’ product offers, customers’ price, and so on. But getting the right amount of timely, accurate data is virtually impossible without the right technology,” Mendoza said.

Airnguru’s pricing solution rests on a Cloud-based, software-as-a-service platform. They visit their clients on-site to install advisory services and provide ongoing technical and advisory support via the internet.

“We plan to expand among airlines in every region, with the Philippines and the larger Asian market particularly compelling because of the growing number of travelers and airline needs for operational efficiency and revenues,” Mendoza said.

The International Air Transport Association earlier said global economic development is getting a significant boost from air transport and expects the value of international trade shipped by air to reach $5.9 trillion this year.

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