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Travelocity Becomes a Travel Retailer

Author

Listed:
  • Barry C. Smith

    (Sabre Holdings, 3150 Sabre Drive, Southlake, Texas 76092)

  • Ross Darrow

    (Sabre Holdings, 3150 Sabre Drive, Southlake, Texas 76092)

  • John Elieson

    (Sabre Holdings, 3150 Sabre Drive, Southlake, Texas 76092)

  • Dirk Guenther

    (Sabre Holdings, 3150 Sabre Drive, Southlake, Texas 76092)

  • B. Venkateshwara Rao

    (Sabre Holdings, 3150 Sabre Drive, Southlake, Texas 76092)

  • Faker Zouaoui

    (Sabre Holdings, 3 Campus Circle-Westlake, Suite 100-500, Westlake, Texas 76262)

Abstract

In 2002, Travelocity lost revenue and market share to competition as the business environment changed. Travelocity and Sabre collaborated to develop the enterprise network model (ENM). The ENM combines discrete choice customer modeling with simulation and large-scale optimization to improve Travelocity’s management supplier agreements, customer marketing, and product pricing. The ENM has helped Travelocity become a more effective retailer and has contributed over $54 million to Travelocity earnings, at a current rate of $43 million per year.

Suggested Citation

  • Barry C. Smith & Ross Darrow & John Elieson & Dirk Guenther & B. Venkateshwara Rao & Faker Zouaoui, 2007. "Travelocity Becomes a Travel Retailer," Interfaces, INFORMS, vol. 37(1), pages 68-81, February.
    • Handle: RePEc:inm:orinte:v:37:y:2007:i:1:p:68-81
    DOI: 10.1287/inte.1060.0273
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    References listed on IDEAS

    as
    1. Barry C. Smith & Dirk P. Günther & B. Venkateshwara Rao & Richard M. Ratlife, 2001. "E-Commerce and Operations Research in Airline Planning, Marketing, and Distribution," Interfaces, INFORMS, vol. 31(2), pages 37-55, April.
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    Cited by:

    1. Andrew Kumiega & Ben Van Vliet, 2008. "Optimal Trading of ETFs: Spreadsheet Prototypes and Applications to Client-Server Applications," Interfaces, INFORMS, vol. 38(4), pages 289-299, August.
    2. Thomas Fiig & Oriana Goyons & Robin Adelving & Barry Smith, 2016. "Dynamic pricing – The next revolution in RM?," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 15(5), pages 360-379, October.
    3. Mao, Zhaofang & Liu, Wei & Feng, Bo, 2019. "Opaque distribution channels for service providers with asymmetric capacities: Posted-price mechanisms," International Journal of Production Economics, Elsevier, vol. 215(C), pages 112-120.
    4. Collins, Andrew T. & Hess, Stephane & Rose, John M., 2013. "Choice modelling with search and sort data from an interactive choice experiment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 56(C), pages 36-45.
    5. Andrew Collins & John Rose & Stephane Hess, 2012. "Interactive stated choice surveys: a study of air travel behaviour," Transportation, Springer, vol. 39(1), pages 55-79, January.
    6. Stacey Mumbower & Laurie A. Garrow, 2014. "Data Set —Online Pricing Data for Multiple U.S. Carriers," Manufacturing & Service Operations Management, INFORMS, vol. 16(2), pages 198-203, May.
    7. Kinshuk Jerath & Serguei Netessine & Senthil K. Veeraraghavan, 2010. "Revenue Management with Strategic Customers: Last-Minute Selling and Opaque Selling," Management Science, INFORMS, vol. 56(3), pages 430-448, March.
    8. Thomas Fiig & Remy Guen & Mathilde Gauchet, 2018. "Dynamic pricing of airline offers," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(6), pages 381-393, December.
    9. Adam Bockelie & Peter Belobaba, 2017. "Incorporating ancillary services in airline passenger choice models," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 16(6), pages 553-568, December.
    10. Ben Vinod, 2016. "Evolution of yield management in travel," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 15(3), pages 203-211, July.
    11. Hotle, Susan L. & Castillo, Marco & Garrow, Laurie A. & Higgins, Matthew J., 2015. "The impact of advance purchase deadlines on airline consumers’ search and purchase behaviors," Transportation Research Part A: Policy and Practice, Elsevier, vol. 82(C), pages 1-16.

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