More and more airlines are now experimenting with seat upgrade auctions, where passengers with an economy class ticket bid against each other for a seat in business or first class. These auctions are a potential revenue gold mine as by this allocation method airlines can not only increase the number of business and first class customers but also the flight occupancy rate.
Auctiometrix can help airlines to design the optimal seat upgrade auction! At Auctiometrix state-of-the-art auction knowledge is available to design and implement an auction that will increase total revenues. If an airline already has an auction in place, we can review and fine-tune the current auction design based on bid data and feedback from customers.
Most airlines use similar auctions. It is however important to realize that the optimal seat upgrade auction is airline specific: it is not very likely that the auction design for one airline is also optimal for another airline.
There are many auction types to choose from: first-price vs. second-price auctions, open vs. sealed-bid auctions, simultaneous vs. sequential auctions, etc. Not only the auction type is important, but also the details of the auction. Decisions should be made on issues like the amount of information to be revealed during the auction; whether or not to set minimum and/or maximum bid amounts; which passengers should be eligible to take part in the auction; whether, and if so, how to favour frequent flyers; the timing of the auction, etc. These details may have a significant impact on the auction revenue.
Auctiometrix is able to provide tailor-made auction software. The unique feature of our software is that it can handle all kind of auctions. Airlines who want to start with seat upgrade auctions or want to have their seat upgrade auction optimized can contact us via the Contact form.
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