Optimizing price with predictive choice modeling

June 2, 2011


Case Study

This case study shows how a transportation operator uses price optimization techniques to improve revenue. The context is the following:

  • Prices are negotiated up-front (once a year) and promotions are then defined to grab additional traffic
  • Enterprise can charge a premium over competition due to its better service (shorter transport time, more frequencies, reliability…)
  • Some competitors are adding capacity and trying to increase market share with aggressive price plans


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