Southwest Airlines Takes the Lead in Revenue Management; New Technology from PROS Revenue Management Strengthens Airline's Revenue Maximization Program

Business Wire, Feb 13, 2001

Business Editors & High-Tech Writers

HOUSTON--(BUSINESS WIRE)--Feb. 13, 2001

Entering the next era in a long-term partnership, Southwest Airlines (NYSE:LUV) and PROS Revenue Management (PROS) today announced a contract for PROS to supply the Dallas-based carrier with the latest technology for individual and group passenger revenue management.

The PROS 5 Revenue Management System and the PROS Group System will help Southwest Airlines maximize revenue by forecasting, managing and optimizing the allocation of seat inventory at different fare levels across its network of flights.

Southwest Airlines -- long a pioneer in the field of revenue management -- has been using PROS' revenue management products since the business discipline was in its infancy. The PROS 5 System represents the most advanced manifestation of a system that has been evolving since Southwest became PROS' first client in 1985.

Keith Taylor, Southwest Airlines' vice president of revenue management, stated, "Southwest Airlines has been an early and active proponent of revenue management and we see these next steps as important to keeping our leadership in the revenue management arena. PROS has been with us all along and we have grown accustomed to excellent results while providing our customers with great low fares. The Group System, in particular, will provide enhancements that will be quickly evident to anyone who has tried to book their groups on other airlines. We are very excited about the benefits of both implementations. The PROS 5 and PROS Group Systems will continue Southwest's revenue management leadership ahead of all other U.S. carriers by offering the lowest fares for our valued customers."

Southwest Airlines will be the first U.S. carrier to implement the PROS Group System, a sophisticated tool for handling the special circumstances related to group traffic. By automating the economic analysis of group booking requests, the PROS Group System will enhance Southwest's ability to provide a faster "one-stop shopping" experience for groups. The system communicates with PROS 5 to help agents offer alternatives for itineraries that meet price criteria of both the airline and its passengers. It also maintains detailed records on each group. In adopting the PROS Group System, Southwest Airlines has clearly staked a claim on revenue management leadership in the U.S.

Benson Yuen, president of PROS Revenue Management's Airline Group, added, "Southwest owes its success over the years to consistently smart decisions. We are, of course, pleased to continue building upon our existing relationship, and PROS looks forward to contributing to Southwest's remarkable record of achievement."

The PROS systems are in operation at more than 80 airlines around the globe, including ten U.S.-based carriers, and the systems account for notable productivity gains and significant incremental revenue improvement at these airlines.

About Southwest Airlines:

Business Week named Southwest in its "Web Smart 50," a list of companies that are doing the most to harness the Big Bang of the Internet and blast away at the Old World Order. The "Web Smart 50" appeared in the e-biz edition of the Sept. 18, 2000, issue.

Southwest Airlines topped the list of reputable U.S. airlines in a recent study published in The Wall Street Journal. According to the study conducted by Harris Interactive Inc. and the Reputation Institute, a New York research group, respondents liked Southwest's dependable service, its low fares and its friendly employees -- the top three drivers of reputation for an airline.

About PROS Revenue Management:

The PROS mission is to maximize the revenue of each client using PROS' world-leading revenue management science, systems solutions and best practices business consulting. PROS clients report annual incremental revenue increases of 4-8% as a result of revenue management. PROS solutions forecast demand, optimize inventory and provide dynamic pricing to maximize revenue.

Founded in 1985 in Houston, PROS Revenue Management has a five-year compounded revenue growth of 40%, in large part due to the intellectual capital of its staff. Nearly half of PROS' employees have advanced degrees and the staff speaks a cumulative total of 26 languages. The company is profitable with 2000 revenue of $29 million. PROS' strong balance sheet is evidence of the company's continued success. For more information on PROS Revenue Management, please visit www.prosRM.com or call 713/335-5253.