Israeli startup using artificial intelligence to alter airline prices

“I divide the world into two categories: traditional markets and sophisticated markets,” said Fetcherr CTO and co-founder Shimi Avizmil. “Traditional markets are governed by human decisions. Sophisticated markets are those in which all the micro-decisions related to marketing, e-commerce, competitive analysis and e-commerce are no longer made by humans, but by algorithms. Our product enables for any business to become a sophisticated business that uses data to update prices in real time in response to various market factors. ”

Fetcherr was founded in 2018 by four friends of Netanya who were looking to revolutionize the markets using artificial intelligence and deep learning technologies that are becoming more common in the financial world. Algo traders use a set of defined rules and instructions to automatically trade securities, performing calculations using a broad set of inputs that can include trade volume, spreads between markets, arbitrage data, and other complex data.

“Most traditional markets, like the hotel, banking and insurance industries, want to be more sophisticated, but they are built on existing legacy systems, and you can’t change the way things work without ‘breaking the tiles’ and rebuild from it, “Avizmil said. “We came together to develop a model that would allow companies in all industries to update their prices 24 hours a day without interfering with their existing infrastructures.”

The team began by testing their product with Amazon prices, which can change many times a day in response to changing consumer demand and other factors. In its attempt to mimic Amazon’s pricing engine for more than a million different products, the company achieved about 90% accuracy, Avizmil said.

When starting commercialization, the company decided to start with the travel industry. “This was the sector that most needed something like this because, during the pandemic, their entire revenue management system became obsolete because it uses data from previous years. Airlines cannot react to price changes in real time, because they cannot it’s built into their DNA, and all the layers they built on top of it weren’t helping. “

Fetcherr uses a wide set of inputs to predict prices. (credit: courtesy)

Fetcherr began by validating our system with a leading Asian airline. “Airlines are used to such trial deployments being very long and expensive, and when we were able to configure them with minimal requirements, they just gave us access to upload certain data, they were shocked,” said Robby Nissan, the company’s CSO. “We have now incorporated our first client, Azul, a leading Brazilian low-cost airline, and we are working to add another two clients. We have been receiving a lot of interest from other companies in recent months, and we are looking to start working with the main industry distributors to offer this solution to all. “

The company expects to see its first revenue in the first quarter of 2022, Avizmil said.

Fetcherr can collaborate with data from a variety of sources, including competitor offers on multiple travel websites, sales volume levels, weather, political developments, and more to predict demand and update prices as often as desired. provider, even per minute. Avizmil said.

“We are continually pricing each seat up to a year in advance,” Avizmil said. “Our platform could handle minute-by-minute updates, but the airline industry is not ready for that.”

Fetcherr may even use tactical pricing strategies to outwit its competitors, Avizmil said. “Imagine that you and I are competing for the same customers for a certain flight route, and I know how you will react to my price changes. If I know that the demand is going to increase in two weeks, I could increase my prices now, so what Travelers will fill their planes at the lowest price first, and then when prices go up, he will be full and everyone will have to come to me. Those one-way companies can use forecasting models. “

To help airline executives build trust in their system, Fetcherr went to great lengths to provide explanations of their pricing decisions in language that data analysts can understand, “added Avizmil.

The platform is market independent, which means that it can be adapted to any type of service.

“After traveling, we will focus on the hotel and cargo industries,” Avizmil said. “There is no limit to what we can do.”



Reference-www.jpost.com

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