The median price difference algorithm
We identified large discrepancies between listed and quoted prices. To address this, we implemented an algorithm that adjusts prices only when consistent inaccuracies are detected, ensuring that operators who price accurately are unaffected. Since its implementation, the proportion of accurately priced requests has doubled, benefiting both operators and brokers.
How it works
When searching for a trip, the median price difference is added to the profile price and displayed as an “estimated quote adjustment” when a discrepancy is detected. This adjustment ensures that the price shown in the aircraft search aligns more closely with the actual quote, making search results more accurate and reliable.
The algorithm calculates the percentage difference between the pricing profile price and the quoted price for the last 30 days. A median ensures that occasional outliers don’t impact the calculation.
What’s the benefit of accurate pricing?
In our experience, this transparency builds solid and long-lasting relationships between our members.
- Streamlines the quoting process, saving time and effort
- Increases chances of converting requests into bookings
- Avoids the need for manual recalculations
- Helps maintain precise offers
- Enhances visibility and ranking in searches
- Better efficiency when sourcing as fewer requests are needed
- Reduces surprises and discrepancies in final quotes
- Increases trust and efficiency in pricing decisions
How to be successful
If the pricing in Avinode is accurate, the algorithm will have zero impact. These are ways for operators to ensure that pricing and routing rules are optimized for success.
Keep your aircraft schedule current to ensure you’re always ready for business. Take a close look at your pricing details—every line item and fee matters. You can also craft unique pricing profiles for each aircraft category or tail number, aiming for precision. You can also leverage urgent and seasonal rates to stay competitive.
Finally, you can use routing profiles to streamline your operations and boost efficiency.
Our customer success team is available to assist you in maximizing your return.
You can read more about setting up pricing profiles here!