Manugistics (Nasdaq: MANU), the leading provider of Enterprise Profit Optimisation (EPO) solutions - the market’s first solutions to simultaneously optimise a company’s supply- and demand-side business processes - has announced that Thomson Holidays, a division of TUI UK, has selected a suite of Manugistics pricing and revenue optimisation (PRO) solutions to increase its ability to maximise capacity and revenue across its product range.
Thomson Holidays, part of the newly created tour operating and distribution business TUI UK, is the UK’s largest air-inclusive tour operator. Central to their future business success is the requirement to accurately forecast demand for flights, accommodation, packaged holidays and ancillary products, such as car hire or excursions. Manugistics PRO solutions are designed to produce rapid, measurable contributions in this area, enhancing the bottom-line profitability for Thomson.
The Manugistics solution is a multi-dimensional yield system that utilises statistical inference and complex algorithms to compare, trade-off and then optimise the expected contribution resulting from various components of individual holiday packages offered by Thomson. For example, where capacity is limited on Thomson’s aircraft, the Manugistics PRO solution conducts advanced analysis of both pricing structures and seat availability to prioritise the sale of the accommodation that makes the highest revenue contribution.
“Extensive research and evaluation of alternative pricing and revenue optimisation products resulted in our selection of a Manugistics PRO solution,” said TUI UK managing director Chris Mottershead. “Manugistics’ deep understanding of the evolving dynamics of our market and their proven experience in implementing optimisation solutions for different sectors of the travel industry were key factors in our decision. In addition, what really clinched the deal for Manugistics was the rapid roll-out and return on investment that they have been able to deliver with their PRO solutions.”
“I am delighted that we can now include the UK’s largest tour operator amongst our customers,” commented Terry Austin, Manugistics president of European operations. He added: “In the fiercely competitive Travel, Transport and Hospitality sector, to grow revenues and expand margins a company needs to proactively and strategically manage pricing to make the most of every transaction, every time. Thomson Holidays are the latest forward-thinking company to acknowledge that Manugistics PRO solutions allow them to realise these benefits.”