Ancillaries are increasingly essential to the financial health and resilience of airlines. Sabre’s new Upgrade IQ product uses artificial intelligence (AI) and machine learning (ML) to optimize airlines’ premium cabin inventory and unlock incremental revenue.
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With ancillaries increasingly contributing to the bottom line of today’s airlines, Sabre recently announced the creation of Sabre Upgrade IQ, a new AI-powered retailing solution that is PSS agnostic, meaning it can work alongside an airline’s existing passenger service system.
The new product leverages advanced AI/ML technology through Sabre Travel AI to give travelers the opportunity to bid for an upgrade to a higher cabin class — at any pre-travel stage of the journey.
Why It Matters
- Many full-service carriers now generate more revenue from ancillaries and mileage programs than from ticket sales.
- As airlines look to diversify revenue streams, there’s an increasing need to leverage AI/ML to generate smarter ancillary revenue opportunities and deliver more tailored customer experiences.
- Upgrade IQ enables airlines to better manage seat upgrades and generate incremental revenue by filling unsold seats in premium cabins.
- By delivering the right upgrade offer to the right customer, airlines can drive a significant uplift in incremental revenue.
How It Works
- The Upgrade IQ product, which is part of Sabre’s Retail Intelligence suite, utilizes Sabre Travel AI technology developed as a result of the company’s strategic partnership with Google.
- The platform collects contextual airline data and applies Sabre’s AI/ML models to generate extensive real-time analytics — generating optimal upgrade prices at the starting, minimum, and maximum proposed bid values.
- This results in personalized upgrade offers across multiple touchpoints — whether in-app, on the website, via email, or at check-in.
- In addition, Sabre partnered with HTS (Hopper Technology Solutions) to incorporate its best-in-class bidding platform and reduce friction in the customer experience.
What Sabre Is Saying
- “Sabre’s latest AI solution is a testament to the power of strategic partnerships in driving innovation and speed-to-market. By collaborating with Google and HTS on some of the core technical capabilities, we have delivered a modern retailing solution to help airlines better manage seat upgrades and create differentiated customer experiences. We are thrilled with the positive response from airline customers.” — Garry Wiseman, chief product and technology officer, Sabre
Learn more about Sabre Upgrade IQ.
This content was created collaboratively by Sabre and Skift’s branded content studio, SkiftX.