XOJET

XOJET soars above the competition with world class AI for revenue management and demand intelligence

The Challenge

Not being able to predict when and where planes were most needed created pricing challenges.

Warehouse

XOJET's Backstory

"We’re leaving money on the table because our mental models no longer work in such a dynamic environment” said Brad Stewart, XOJET's Chairman and CEO at our very first customer meeting.

Brad envisioned an XOJET that was powered by the very best of humans plus technology, working together to deliver exceptional value to their customers. XOJET had started to combine fixed and dynamic pricing to create a more innovative revenue management model, but there were still gaps. He knew adding a system of intelligence with Enterprise AI® would help their success take flight

Noodle + XOJET Strategy

It’s not enough to depend on internal data for solutions to this problem when your service depends on accurate demand forecasting. XOJET and Noodle.ai created a strategy that pulled internal data, human domain expertise, internal industry knowledge, and external data signals together. Doing this allowed XOJET to better sense market demand ahead of time, ensuring more accurate deployment of assets. This, in turn, created better pricing models based on real data in real time. Better pricing models and demand forecasting creates more stability in availability and consistency in scheduling for customers.

To get the right forecasting, XOJET needed to construct a full picture of the market dynamics and understand the true nature of demand across its network – no easy feat when over 200 demand signals feed XOJET's demand intelligence application!

Enter Noodle.ai. Our Demand Intelligence application mines data from XOJET's revenue management system and blends it with sources like ARGUS and industry events to construct a demand signature for each day. The application uses historical bookings and conversion rates to generate price elasticity coefficients, then constructs a pricing curve for each type of demand signature. This empowers revenue management to dynamically price and schedule.

We're the number one on-demand private jet company, we're a dominant player. In two or three months, our partner Noodle.ai gave us the ability to be razor-sharp in terms of the data, the insights, and then the action plan.

Brad Stewart, Chairman and CEO, XOJET, acquired by Vista Global in 2018

The Impact

Using our application, XOJET implemented dynamic pricing based on predictive demand forecasts from region to region, leading to increased revenue and reduced deadheads.

  • 5% increase in revenue per cycle year-over-year (dollars of revenue every time a plane takes off and lands)
  • 11% increase in Flight Stage length (the length of an occupied revenue trip–which is a key measure of how efficiently we're deploying our fleet)
  • 8 out of the first 10 months, increase in fleet contribution

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