SAS is one of Longtail’s first client airlines and we’re marking the first anniversary of our partnership with an interview with Casper Søndergaard, Head of Pricing for SAS. Simon Talling-Smith, Longtail’s CRO, talks to Casper about the motivation to deploy the Longtail solution, the benefits and upsides that the airline has seen over the last year and his expectations for further growth.
Simon: Hi Casper, thanks for speaking with us today. It’s hard to believe that we’re already at the first anniversary of working together – so much has happened over that time. Thinking back a year, what challenges were SAS facing and so what was it about Longtail that excited SAS?
Casper: Hi Simon, great to be here with you today. When I think of the years before Longtail, we were finding that we were spending nearly all of our energy pricing the top O&Ds for SAS. We wanted to release the potential of the vast number of O&Ds that were priced by very static methods like add-ons, constructed, or even not priced at all. We saw that Longtail could make a real difference with this opportunity.
Simon: Yes, that’s a familiar story and one that has been echoed by all of our airline clients since then. I remember being impressed by the way that SAS moved through their internal decision process for the Longtail platform quite quickly – how did you do that?
Casper: It was all about getting the focus from the top management. The whole process was overseen by our Chief Strategy Officer and myself and we both stayed closely involved all the way through to implementation. I also recall that our CEO had worked with Longtail previously – and that made things roll a bit faster as well!
Simon: Was there a particular breakthrough moment that you recall after the Longtail platform was implemented? What surprised you the most?
Casper: Well shortly after implementation we saw some of the previously unmanaged O&Ds perform really well. What surprised me was that we hadn’t seen these ourselves. I was also surprised by how much revenue they quickly generated per month, and which O&Ds are still performing today.
Simon: SAS are expanding the scope of their Longtail usage, can you tell us about that? How do you see the partnership evolving?
Casper: Yes, that’s right – the previously unpriced O&Ds have been so productive on the Longtail platform that we are now moving to use the Longtail intelligent algorithms for O&Ds that we had previously priced ourselves. In a way we’re moving gradually up the long tail of O&Ds!
Simon: How do you find working with the Longtail team? What do you like about them? What are the challenges?
Casper: From the very beginning it was clear that the Longtail team has deep experience in airline pricing. For me that was the most important aspect, as we do not have to “educate” a technology partner about pricing. I also like that we have a very open and honest dialogue, and I feel that they are a part of my team. The challenge lies in the fact that the team does not yet have full insights into the SAS business via its internal data, and the complexity of our pricing setup.
Simon: What would you say to pricing managers at other airlines about Longtail?
Casper: Longtail is a great way to get some help on pricing those “bad conscience” O&Ds. The ones you never look at, or even have looked at. Of course, There is a little time that needs to be spent in the startup, but after that, the daily routine is simple. You can then choose to move onward with business development with the Longtail team, or simply just keep it at the level of cooperation that you want.
Simon: Thanks Casper, I love that description of “bad conscience” O&Ds – it really encapsulates that feeling that all pricing managers know! Its been great chatting to you today – did we miss anything?
Casper: Thanks Simon. I think we’ve covered everything. The most important thing for me to say is how I really see the Longtail team as part of our pricing team – they’re great people to work with.
**About Longtail Technologies**
Longtail Technologies, headquartered in Palo Alto, California, is an innovative force in the airline industry. It offers an intelligent, autonomous pricing platform that adapts to daily industry changes, such as price updates and schedule modifications, without the need for day-to-day human intervention. The platform leverages vast amounts of data to build a comprehensive journey database, ensuring airlines are always competitively priced and visible for customer searches. The Longtail platform is actively used by major airlines such as Aeromexico, SAS, Avianca and TAP Portugal.
For more information about Longtail Technologies visit https://www.longtail.ai/ or contact simon@longtail.ai
