On April 25th, we hosted our second webinar of the year titled ‘BrainPROS: The Future of Smart Pricing’, led by Camilla Brugali, Product Manager of BrainPROS, our Revenue Management system.
We continue with our webinar series. In this second edition, we focused on the Brazilian market, aiming to share with bus companies in that country what we have achieved, guiding companies to optimize their revenue management through technology.
In the webinar—headed by Camilla Brugali, Product Manager of BrainPROS, and María Fernanda Brito, Head of Marketing at Reservamos SaaS—the following topics were addressed:
Price Law #1.
The critical points companies face in terms of pricing strategies.
BrainPROS, Revenue Management system.
Price is about leveraging context!
The best time to implement a Revenue Management system.
Price Law #1: Price is Never Ready
The main law and premise that Camilla shared during the webinar is that the pricing strategy is never ready, never definitive, and never the only possible one.
Just as a product requires constant innovation, updates, and new features according to user needs, pricing strategies also require constant adjustments. In Camilla’s words: The market and a customer’s willingness to pay a price are becoming increasingly dynamic, a moving target. There are increasingly more sales channels, competitors, and sources of interaction between an end consumer and a brand. This requires that the pricing strategy be equally dynamic and constantly reviewed and changed, considering various factors to stay up-to-date and competitive.
When we talk about pricing strategies, we refer to all aspects to consider when assigning a price to a product or service. In sectors like buses, there are challenges to establish mass, automated, and intelligent pricing strategies. When speaking of smart pricing, we refer to considering different areas of opportunity. What are these challenges that we have identified working hand in hand with the sector:
Data standardization.
Identifying segments to capture pricing opportunities.
Updating prices across different channels.
Without having a single source of information, it becomes difficult for companies to detect opportunities in an automated and massive way to set the right price.
The price is about leveraging the context
There are countless aspects that a bus company can consider when creating a pricing strategy for each route and schedule. From segmenting their travelers, the most popular and least crowded routes, the days of the week traveled, the time of day, the type of seat, weather conditions, events or current situations, the distance of the journey, ancillaries such as pets, luggage, food, and even the anticipation with which the traveler purchases their ticket.
All these aspects play a role in creating a pricing strategy, so the price of a journey goes beyond the cost for the company; it involves the entire purchasing flow for a traveler, their interests, needs, preferences, etc.
Several models help us anticipate demand. One of them is the traffic to a bus company’s website over time, per user; it’s a way to predict demand. However, there are many ways to think about customizing the pricing strategy according to each traveler and thus achieve the goal of maximizing revenue.
Camilla Brugali, Product Manager, BrainPROS.
Errors commonly made when creating a pricing strategy
One of the major challenges identified by the BrainPROS development team and Reservamos SaaS Revenue Management strategies team are the fears and scenarios often faced by bus companies when creating a pricing strategy.
For many companies, creating a pricing strategy involves misconceptions and issues such as:
Assuming that if the price is too low or discounted, the company will lose revenue.
Believing that if the price is too high, the company will be rejecting potential sales.
Fear of losing sales and therefore profitability on each journey.
However, these are misconceptions that can lead a company to lose money. In Camilla’s words: When a company today takes responsibility for creating intelligent pricing strategies, it means that it is also willing to understand that user or traveler throughout their purchasing journey. Understanding that over time, that user will have different behaviors and needs. So, we shouldn’t start from the premise of only lowering the price or always raising the price, but rather think dynamically, interpreting that end user more comprehensively and finding ways to retain them and increase their loyalty.
Whenever we think about Revenue Management strategies at Reservamos SaaS, we know that it is necessary, on the one hand, to constantly monitor the different variables in the market, in consumers, in the behavior of the company itself, and on the other hand, to interpret that information and data to propose an intelligent price that pleases the traveler and truly maximizes revenue for the company.
Hence the value that BrainPROS brings, as it is a Revenue Management system that does not require integration, and companies can try it out to increase their insight into the variables that influence the creation of an optimal and effective pricing strategy.
3 reasons to implement a Revenue Management system:
Data and cloud infrastructure are becoming more cost-effective and better every day.
Large language models (LLMs) and artificial intelligence make data collection, organization, and analysis scalable and powerful.
Customer expectations regarding personalization make dynamic pricing an indispensable strategy for any bus company.
Having technology specialized in the bus sector today is not impossible to achieve. A solution that is capable of concentrating a large source of data is synonymous with cost optimization, and operational processes, and therefore is a cost-effective solution due to its immediate benefits.
In addition, one of the major trends today among brands is personalization. For that, data is required, information that allows a company to adapt uniquely to what each user or consumer requires, not only in terms of the user experience within an eCommerce but also in the pricing strategy, according to their behavior.
The best time to implement a Revenue Management system is now
Through BrainPROS, bus companies have two paths to delve into Revenue Management and smart pricing.
Competitor Monitor
It is a machine learning-driven module, integrated into BrainPROS, developed to monitor and analyze market behavior to create a differentiated strategy.
The Competitor Monitor facilitates the analysis of public market data. It is used by price analysts, data analysts, operations managers, and sales and marketing managers, among other members of bus companies, to have up-to-date and automatic market information at their fingertips, such as routes, schedules, occupancy, capacity, and prices; and through this comprehensive visualization, make better decisions in their pricing strategies and inventory optimization.
BrainPROS
A Revenue Management system, based on data science, that concentrates all the data a company needs to make revenue-increasing decisions.
BrainPROS provides precise and agile answers to the questions companies have about their markets, helping to strengthen their performance and automate processes and operations.
In addition to the Competitor Monitor module, this system consists of 4 more modules that provide: smart alerts about market supply variations; indicators to measure the performance of their strategies; and smart pricing recommendations to optimize revenue.
Every company has its way of working, its policies, and its objectives. Therefore, our dynamic pricing system is also customized for each company. We provide advice, follow-up, and guidance to help companies bring their pricing strategies to their direct online sales channels.
Camilla Brugali, Product Manager, BrainPROS.
In addition to our BrainPROS system, at Reservamos SaaS, we have internal Revenue Management consultants who support and guide our partners in the creation of their pricing strategies. This way, we ensure that operational teams feel confident about the strategies they are creating, dispelling any doubts or fears about their effectiveness, and showing the potential of BrainPROS, providing them with the necessary training to achieve autonomy in the use of the solution, and thus guaranteeing a maximization of their revenue.
We have several success stories in the use of the Competitor Monitor and BrainPROS. In Brazil, wemobi, a 100% digital company, uses the Competitor Monitor. This module helped the company achieve significant revenue growth, reach a record occupancy rate, and sustain a substantial growth margin. All the data sources from the Competitor Monitor helped this digital company make better decisions about dynamic pricing.
Camilla Brugali, Product Manager, BrainPROS.
Another 100% digital brand located in Mexico is Roll&Bits, which uses the complete BrainPROS system and is an important success case in the use of Revenue Management strategies. In Camilla’s words: The Roll&Bits case is one of great pride for me. Through the use of BrainPROS, the company achieved a 37.8% revenue growth per trip; this means that the implemented strategies allowed Roll&Bits to maximize revenue for each trip taken. And that revenue growth per trip led the company to achieve a 41% growth in total revenue.
Today is the best time for any company to adopt smart pricing strategies. Faced with an increasingly modernized world, demanding more automated processes, more personalized experiences, and a more agile capacity to analyze data, it becomes imperative to have technology that solves all that, helps optimize processes, reduces operational times, and focuses energies on detecting growth opportunities. BrainPROS is the answer that companies seek to achieve those business objectives and increase revenue efficiently.
At Reservamos SaaS, we take pride in the specialized talent we’ve cultivated over time to drive the bus sector across the LatAm region.
That’s why we’ve prepared a summary of the most notable achievements of 2023. Each innovation and success reflects the diligent effort we’ve devoted to developing technology that accelerates the evolution of companies in this vital sector.
Through our Product, Technology, and Payments teams, we’ve maintained a steady pace of innovation to ensure the creation and enhancement of specialized tools that assist each bus company in achieving digital success.
As technological allies of the sector, we’re constantly striving to adapt swiftly to the environment, catering to the needs of travelers, and ensuring greater operational efficiency and optimization that helps boost the revenue and profitability of each company.
At Reservamos SaaS, we lead the technological evolution in the land transport industry.
Learn about the process of integrating the Doters loyalty program into Primera Plus’s eCommerce.
At Reservamos SaaS, we work day in and day out with our partners to ensure that their eCommerce platforms provide the best digital shopping experience for their travelers. Our technology and product team services bus companies to carry out integrations linked to marketing strategies, aiming to enhance competitiveness and increase sales. One of these projects involves integrating loyalty programs into the eCommerce platforms of bus companies, as it proves to be an excellent option for fostering greater traveler retention.
One of our partners, the Mexican bus line Primera Plus, sought to integrate the Doters loyalty program into its eCommerce platform. The technology and product team at Reservamos SaaS collaborated with both brands to make this possible.
Doters is a loyalty program developed by the Mexican airline Viva, focused on rewarding frequent travelers. Its partners include the airline, as well as ground transportation and financial services. The program has three levels (green, silver, and gold) with different benefits for users.
What is the advantage of having a specialized technology partner in your industry for such integrations? Each integration presents challenges and complexities to consider. In the case of a loyalty program, one of the most crucial factors is adhering to business rules and ensuring that every possible scenario for the traveler is seamlessly fulfilled within the eCommerce platform, without any friction. Reservamos SaaS provided the necessary support and guidance to make this business strategy successful, thus continuing to drive sales and traveler loyalty.
Having a loyalty program within your company’s eCommerce platform offers significant benefits, one of the most important being the ability to encourage more travelers to make their purchases online through your bus company’s direct channels.
For the integration of Doters into Primera Plus’s eCommerce platform, the technology and product team at Reservamos SaaS worked in stages to ensure the success of this integration. This process also involved the app to achieve consistency in service between the web version and the app, ensuring traveler satisfaction regardless of where the purchase is made.
What can travelers do when making a transaction with Doters?
Pay with points.
Accumulate and pay with points.
Pay with points and a credit card.
Pay with a credit card and accumulate points.
An important point is that ancillaries do not accumulate points, and points cannot be used to pay for any of those additional services.
How can travelers use the loyalty program? Travelers need to log in to use and accumulate their points. Here, the Reservamos SaaS team worked to create informative banners at each stage of the purchase funnel, encouraging login and providing greater clarity to the traveler on how to use points during the transaction. At the end of the purchase, the traveler receives detailed information about their purchase via email, along with information about Doters. Additionally, the digital ticket displays payment information, Doters member number, points used, amount in pesos, and additional Doters information.
Customizing and adapting your eCommerce platform is possible with the right guidance. With the help of our technology, your company has the flexibility to implement strategies that boost sales and strengthen connections with your travelers. Through our development and product team, we provide ongoing support for your initiatives to ensure the digital success of your company.
With the help of BrainPROS, you can gain a deeper understanding of your competitors and your market.
At Reservamos SaaS, we understand that identifying opportunities to grow your sales can be overwhelming. There are various factors to consider, such as price variations in the market, or the occupancy percentage for both your competitors and your routes. The speed at which you react to these changes can be the difference between gaining or losing competitiveness. That’s why we have developed technology to streamline every operational process and help you effectively boost your company’s growth.
BrainPROS is a Revenue Management system capable of answering your market-related questions. Through one of its modules called Smart Alerts and Recommendations, you can schedule notifications to stay updated on real-time price offerings in your market and receive information on rate fluctuations and occupancy on each route, both for your company and your competitors.
An essential feature within this module is the ability to download data from configured alerts in bulk, compiled in an Excel sheet. We have also integrated the option to generate a report so that you can track price changes over time for a specific route and a specific competitor. This way, your company can closely monitor price elasticity and gain a detailed understanding of the impact of price on occupancy.
Through our technology, at Reservamos SaaS, we have specialized in understanding each of your company’s needs and opportunities to grow. That’s why BrainPROS has become a crucial tool for facilitating and streamlining real-time market monitoring and providing you with the necessary information to anticipate and create more effective Revenue Management strategies.
With BrainPROS, your company gains a deeper insight into your competition and the market as a whole, enabling you to make informed decisions to stay ahead.
At Reservamos SaaS, we spoke with Humberto Candelaria, Commercial and Marketing Coordinator at Roll&Bits, about the significance of revenue management in the bus industry to enhance its profitability and success.
Roll&Bits is a 100% digital ground transportation company that, since 2019, has introduced an innovative and efficient business model, successfully winning over digital travelers by streamlining operational processes to create more appealing travel experiences. Without terminals and with boarding points strategically located in the cities where it operates, Roll&Bits’ digital sales channels provide an opportunity for direct communication with its users.
In Humberto’s words, Roll&Bits, a Reservamos SaaS partner, is described as a tourism tool focused on strengthening people’s mobility between cities by providing a comfortable and secure way to travel. According to Humberto, within the financial sector, the bus industry is one of the most important due to its positioning, driven by digital evolution and its remarkable growth in recent years. This digitization has allowed companies to gain a deeper understanding of travelers’ behavior to tailor their offerings to their needs.
Understanding the digital traveler is crucial today for the success of a bus company. Since the pandemic, we have witnessed how the sector’s evolution, which might have taken five or six years, was accelerated within months. This has led people to seek digital alternatives. Travelers accustomed to visiting a physical office to buy their tickets now make their purchases online. At Roll&Bits, we have created a 100% digital purchasing experience for travelers. Despite opening physical sales points, the majority of people continued to make digital purchases. In our case, 97% of our sales are digital, with only 3% occurring at physical sales points. The benefit of digitization is that it enables us to keep operations running smoothly, positioning us among travelers and adapting to their needs and the current circumstances.
Humberto Candelaria, Commercial and Marketing Coordinator at Roll&Bits.
Effective revenue management strategies with the help of specialized technology
Humberto has specialized in creating pricing and revenue management strategies for the transportation company Roll&Bits. With the assistance of BrainPROS, our Revenue Management system, Humberto monitors purchase anticipation and brand behavior. This allows him to gain a detailed understanding of the occupancy of their units, identify opportunities to offer additional services, monitor the market, and manage the profitability of each journey.
What I like most about my job is that Roll&Bits allows you to be free. With partners who provide tools like BrainPROS, I have the freedom to develop strategies I know will work best for the business. I can experiment and improve every day; if I make a mistake, I learn from it and move forward. With BrainPROS, I can solidify my strategies with greater confidence, reducing the margin of error, and I can delve deeper and visualize various key aspects. This makes my work enjoyable, challenging, and continuously growing.
Humberto Candelaria, Commercial and Marketing Coordinator at Roll&Bits.
Pioneers in dynamic pricing implementation
When asked about effective Revenue Management strategies in the industry based on seasons or demand, Humberto emphasized the importance of monitoring the market and seizing opportunities such as peak seasons, events, or activities that can benefit or impact operations. He also highlighted the significance of analyzing the performance achieved and preparing in advance to avoid any pitfalls to maximize the company’s reach.
As one of the first low-cost ground transportation companies, implementing dynamic pricing helped us boost purchase anticipation, and BrainPROS technology enabled us to monitor traveler interest. This way, we can increase the profitability of low-occupancy schedules and assign higher demand value to better-positioned schedules. Today, our travelers plan and anticipate their trips to gain more benefits, giving us an advantage because we can see high occupancy in our units for peak days and hours from the early days of the week. We make people seek us out more. This allows us to closely control the operation and profitability of each journey.
Humberto Candelaria, Commercial and Marketing Coordinator at Roll&Bits.
Among the allies of Reservamos SaaS, Roll&Bits has been a pioneer in using BrainPROS, our Revenue Management system. This solution has marked a turning point in revenue management and an evolution in the company’s internal operations. Reservamos taught us how to use BrainPROS to have greater control over our pricing strategies. In this process, I have received constant follow-up and guidance from the Reservamos team to make the most of BrainPROS.
The use of BrainPROS has allowed Roll&Bits to optimize and automate internal processes, streamline operations, and perform actions like loading pricing strategies massively and in less time. According to Humberto, before BrainPROS, the pricing load took up to 3 days. Now, with the help of BrainPROS functionalities, it takes only 2 hours, allowing more time for monitoring demand and market behavior. In Humberto’s words: Processes that used to be lengthy and took days to analyze whether they had worked can now be adjusted, and key decisions can be made instantly. With BrainPROS, we can pleasantly surprise travelers and achieve positive internal results. The more information I have at my disposal, the greater my insight and ability to respond quickly and exceed sales targets.
Some of the benefits that BrainPROS has brought to the company’s operations include
The ability to load pricing strategies massively, reducing error margins and operational times.
Access to daily and specific period revenues.
Constant monitoring to assess key metrics performance, such as digital sales, occupancy, and average price tickets.
Opportunities to enhance operations, make agile corrections, and increase the average ticket.
Daily comparisons and historical data from the last 13 months to evaluate short- medium- and long-term strategies.
Setting higher revenue goals and controlling growth to ensure additional income.
The ability to create internal income statements with the help of the Dash Center module integrated into BrainPROS.
In just 11 months, Roll&Bits achieved a +77% growth in its average ticket. Since implementing BrainPROS, the company confidently implemented pricing strategies and can experiment without risks, thanks to its monitoring and adjustment features. For Humberto, BrainPROS has been a continuous learning experience. Every day, they surprise me with new functionalities or tools that make my job easier.
Will dynamic pricing be a trend in the bus sector?
Regarding the current challenges in revenue management in the bus industry, Humberto believes that dynamic pricing strategies are the way to maintain a competitive advantage. In addition, digital sales channels allow them to put themselves in the traveler’s shoes, establish direct communication, and make a difference. Roll&Bits is committed to innovation and continuous improvement with the help of technology: We are a young team that understands the needs of travelers. Every day, we research and delve into the needs of travelers to ensure better service.
Effective revenue management allows a company like Roll&Bits to maintain both maximum and minimum prices without affecting the profitability of each journey or the traveler’s wallet. It enables them to analyze their competition and the market, offer attractive dynamic prices to travelers, and ensure a competitive edge. For Humberto, the future of Roll&Bits lies in the company’s ability to take travelers to the very heart of cities at a very low cost. We see great potential in taking travelers where they want to be. For example, we are working to take travelers to their favorite events, from their hometown to the venue, non-stop, pick them up, and return them home, easily, efficiently, and safely.
Future outlook on revenue management in the bus industry
Regarding the future of Revenue Management for bus companies, Humberto recommends that companies adapt to new technologies and changes. Today, travelers seek the best deals and opportunities, and companies need to be prepared to meet that need. The only way to do this is by daring to innovate. Tools like BrainPROS help us grow our businesses, broaden our vision, and provide significant opportunities against the competition. Through the implementation of dynamic pricing, we can enhance the loyalty of our travelers, pamper them, and adapt to what they are looking for. There’s no better traveler than the one who recommends you by word of mouth.
Roll&Bits is a company that entered the technology market at just the right time. With the assistance of specialized technology and the guidance of Reservamos SaaS, it has built a top-tier company with efficient service through its digital sales channels: its website and mobile application, which ensure simple and secure purchases for travelers. They also offer innovative service during boarding. In Humberto’s words: We establish direct communication with travelers and listen to their needs, making us unique in the sector. We rely on our satisfaction surveys to identify growth opportunities, such as new routes and boarding points. We investigate every request from our travelers and constantly seek the common good for all.
