Optimizing price with predictive choice modeling
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