TRX, Eclipse Partner For Air Analysis, Data Collection
TRX Data Services and Eclipse Advisors, the technology unit of Rosenbluth International, have partnered to create a solution for airlines that includes corporate client data standardization and contract decision support technology. According to executives at both companies, five carriers they declined to name currently are testing Cobra, a system similar to an existing product developed by the Prism Group and in use at Continental, Northwest and United airlines.
"We're interested in taking data from corporations or suppliers and placing this level of sophisticated optimization and decision support technology to provide good analysis, understanding and insight from that information on behalf of corporations," Eclipse COO Michael Boult said.
Eclipse is working to link the deal management aspect of Cobra meant for airline clients with Dacoda, Rosenbluth's contract optimization tool available on the client side.
Meanwhile, to provide carriers with contract performance monitoring capabilities, TRX would collect a corporate client's travel data in any of a wide variety of formats and use switching technology to align the information. Based on recommendations of the Data Advisory Board, a group in which TRX participates (BTN, June 24), the airlines would request only seven data fields, while excluding information deemed too sensitive, such as credit card information.
"There is complete flexibility in formats," said Susan Hopley, executive vice president and general manager of TRX Data Services. "That flexibility means you are not dictating which data needs to come across. We'd expect an airline not to dictate to corporate customers."
Regarding what thus far amounts to a monopoly for Prism, Boult said, "not everyone is happy with the one-size-fits-all solution in the marketplace," considering different models would generate different sets of results. "According to feedback from carriers, including those that use Prism, we think ours is the most robust." He cited Cobra's ability to project future traveler behavior, react quickly to changing market conditions and rapidly track client compliance.
"But who are the airlines?" asked Les Baker, Prism vice president of privacy, referring to the TRX/Eclipse claim that five carriers are in testing. "So far, it sounds like marketing hype, but the market will decide, and we look forward to the competition."
Boult said the goal of the system is to help airlines bring logic into the corporate contracting process. "There are too many discounts out there for companies that don't deserve them and other companies that do not get the recognition they deserve," he said, estimating that only 20 percent of corporate clients fully meet contractual goals. "The airlines have no choice but to reduce the set of clients with which they have deals."
TRX and Eclipse said they have been working behind the scenes for several months and Boult expects at least one of the five carriers now in testing to publicly announce a licensing agreement within 90 days. But it is not clear if any airline would choose to use both Cobra—which Boult said is cheaper—and Prism, considering the multimillion-dollar price tag on the latter and the possible efficiencies of using a single system.
"We suggest they test Cobra versus Prism, versus internal systems, versus any others that may come about and see which system is superior," he said. "We feel we have a 95 percent accuracy rate."
Boult acknowledged that the Web-based Cobra system, or Corporate Opportunity and Business Risk Analyzer, "won't be right in every market all the time" and therefore raised the possibility of a hybrid approach. "That is the subjective part. An airline would not necessarily have to use each exclusively."