INDUSTRY BRIEF: O&D CARGO REVENUE MANAGEMENT SOLUTION

Track demand trends over time for any origin, destination, product, or large customer.

As an air cargo carrier, you’re faced with revenue-critical challenges on a daily basis, from rising fuel costs to intense competition from cheaper means of transportation. Amid the uncertainty, one thing is certain: defending your business and protecting profi ts is priority one.

PROS O&D Cargo Revenue Management Solution offers a scalable, high-performance, real-time solution for air cargo that helps you fi ght back. As the leading network cargo revenue optimization tool in the world, PROS O&D Cargo Revenue Management enables you to determine the optimal mix for every departure that balances costs, rates, capacity and demand. With PROS, you can make the best use of assets to satisfy customers while maximizing profi tability.

OPTIMIZE SHIPMENTS IN REAL-TIMEBuilt on our highly regarded forecasting and optimization algorithms, PROS O&D Cargo Revenue Management automatically maximizes belly capacity

while minimizing revenue spoilage for bookings andindividual allotments. The system considers every booking and cancellation as they occur throughout the day to provide optimal hurdle rates for shipments in real-time.

LEADING CARGO NETWORK CONTRIBUTION OPTIMIZATION

Use station and Sales requests for allocation capacity decision making or the demand forecast to drive the selection of optimal allocations.

PROS O&D Cargo Revenue Management Solutions manage global cargo business, freighter and air carrier belly capacity, containerized and bulk cargo, trucking networks, as well as alliance partners and blocked-space agreements.

OUTPERFORM WITH PROS • Shift your focus from fi lling empty space to maximizing contribution. • Identify the profi t-maximizing split between allotments with uncertain utilization and free-sale. • Find the optimal overbooking risk to reduce capacity spoilage and offl oads. • Forecast capacity, customer demand and customer tendering rates, and maximize the value of each kg and m3 as the value of that capacity changes with each booking.

WORK MORE EFFICIENTLYPROS O&D Revenue Managment helps you work with greater effi ciency, in better managing day-to-day allotment capacity and in setting the right hurdle rates for competing free-sale shipments.

ANALYZE WITH INSIGHTOur powerful analytics enable you to generate business insights out of the massive amounts of data in your

organization. These include confi gurable dashboards with key performance indicators that help direct you to high-value opportunities and what-if modeling so you can answer longer term questions, such as freighter scheduling and the cost of meeting customer demand for allotments.

CHOOSE THE SOLUTION THAT’S RIGHT FOR YOU: EITHER PROS O&D CARGO SHORT TERM (ST) OR MEDIUM TERM (MT) SOLUTIONSThe ST Solution is all about controlling access to the non-allocated free-sale capacity. Every economic optimization has a supply and demand side. With a click or two, you can see both past and current allotment utilization, in weight, volume, and revenue terms. This forms the foundation for overbooking unused allotment capacity. The allotment overbooking combined with the forecasted free-sale capacity gives the supply side. The MT Solution forecasts demand for both allotment and free-sale capacity using either past AWB activity or requests for allotment capacity submitted by Sales, stations, and/or customers. You can set rules to govern the maximum capacity available for allotments for a fl ight and minimum/maximum allotments for stations and customers.

PROFIT-CENTERED PRICING GUIDANCEPROFIT-CENTERED PRICING GUIDANCE

LEADING CARGO NETWORK CONTRIBUTION OPTIMIZATIONLEADING CARGO NETWORK CONTRIBUTION OPTIMIZATION

Bid prices automatically adjust the hurdle ratesfor free-sale bookings based on remainingcapacity to control for unexpected largebookings and cancellations during the day.

Given those rules, you can fi nd the profi t-maximizing allotments in weight and positions. The demand side is the daily updated free-sale demand forecast with forecasted rates and surcharges. The optimization generates the hurdle rates for every fl ight departure in the booking window. But it is more than that. The optimization has uncertainty built in – hurdle rates (or bid prices) for all free-sale capacities are automatically generated. So, if more bookings than expected or more cancellations are noticed, the system automatically adjusts the hurdle rates to meet those unexpected outcomes.

HOW CAN PROS CARGO HELP YOU?Use your data: Organize, analyze, and use your shipment, booking, fl ight, and customer data to achieve load factor and profi tability goals

Find profi t-maximizing cargo mix and allotments: Use a single system to coordinate allotment data and demand, set rules to fulfi ll obligations and preferences, integrate station and customer capacity requests to fi nd the profi t-maximizing mix of free-sale and individual allotments

Overbook with insight: Now you can see both free-sale tendering rates and allotment utilization in one place. Choose the risks you want to take.

Manage access to free-sale capacity with dynamic hurdle rates: Use our solutions to control access to free-sale capacity for each departure, allowing for signifi cant uncertainty.

Find out more about PROS O&D Cargo RevenueManagement Solution– the leading network revenue optimization tool used by more airlines worldwide.

PROS O&D Cargo RevenueManagement Solutions are proven

in production to generate revenue lift at world-leading carriers.

PROFIT-CENTERED PRICING GUIDANCEPROFIT-CENTERED PRICING GUIDANCE

PROS Corporate Headquarters3100 Main Street, Suite 900, Houston, TX 77002

Phone: +1 713-335-5151 | Sales: +1 855-846-0641 | Fax: +1 713-335-8144

ABOUT PROS

PROS Holdings, Inc. (NYSE: PRO) is a big data software company that helps customers outperform in their markets by using big data to sell more effectively. We apply 27 years of data science experience to unlock buying patterns and preferences within transaction data to reveal which opportunities are most likely to close, which offers are most likely to sell and which prices are most likely to win. PROS offers big data solutions to optimize sales, pricing, quoting, rebates and revenue management across more than 30 industries. PROS has implemented more than 500 solutions in more than 55 countries. The PROS team comprises more than 650 professionals around the world.

To learn more, visit www.pros.com.