Air India Taps AI with RTS for Dynamic Cargo Pricing and Tourism Growth

Air India uses AI to sharpen cargo revenue and support tourism growth

Air India is partnering with Revenue Technology Services (RTS) to bring AI-driven discipline to cargo revenue management and pricing. The airline will roll out Velocity and AcceleRate across its network to improve decisions, tighten pricing response, and align inventory with demand. The goal is clear: higher yield, faster pricing agility, and a stronger foothold across global cargo and tourism lanes.

Why this matters for management

This move fits Air India's five-year plan to go digital-first and make decisions with data, not guesswork. Cargo and tourism fuel India's growth, and smarter pricing plus better load control improve both profitability and connectivity. With RTS's machine learning stack, leaders get tighter controls, cleaner metrics, and fewer blind spots.

Velocity: forecast, fill, and monetise with precision

Velocity applies machine learning to forecast demand with higher accuracy, automate overbooking decisions, and optimise revenue across routes and segments. It supports capacity management, inventory control, and O&D strategies in one modular platform. Expect smoother peak-season operations, better cargo allocation on passenger routes, and reduced spoilage.

AcceleRate: real-time pricing at scale

AcceleRate recommends rates and price corridors using live market signals, customer behaviour, and predictive analytics. Sales and pricing teams gain consistent guidance, faster response times, and guardrails for discounting. This keeps pricing aligned with shifting demand in both cargo and tourism markets.

Operational impact across the network

Air India's broader Vihaan.AI program includes fleet expansion, a training academy launched in 2024, and a new maintenance base by 2026. Combined with RTS solutions, the airline can support inbound tourism with better reliability and capacity planning. Expect tighter coordination between passenger schedules and cargo flows that serve hospitality and travel supply chains.

What leaders should track

• Revenue & yield: Yield per kg, revenue per ATK, sell-up rate, O&D mix contribution
• Demand & pricing accuracy: Forecast accuracy, win-rate vs. quote, price response time, corridor adherence
• Capacity & utilisation: Load factor, spoilage, overbooking efficiency, belly vs. freighter mix
• Service & reliability: On-time performance, connection integrity, SLA adherence by key accounts
• Commercial health: Margin by channel, contract compliance, rebate/override leakage

Execution playbook

• Data readiness: Consolidate AWB, booking, and O&D history; reconcile tariffs and surcharges; standardise station codes and exceptions.
• Pricing governance: Define corridors, floors/ceilings, and approval thresholds; log overrides for audit and coaching.
• Sales enablement: Train teams on quote discipline, response SLAs, and value messaging for high-yield freight.
• Integration: Connect Velocity/AcceleRate with cargo CRM, OPS, and revenue accounting for closed-loop reporting.
• Experimentation: A/B test corridors, seasonal add-ons, and contract constructs; iterate monthly based on KPIs.
• Compliance & risk: Align with IATA cargo standards; enforce data access controls and model monitoring.

Rollout and risk controls

The airline plans a phased rollout of Velocity and AcceleRate. To avoid drift and adoption issues, set MLOps routines, refresh training data on a fixed cadence, and add feedback loops from stations and key accounts. Keep a clear path for human override with post-action reviews.

Impact on India's connectivity

By pairing advanced tech with fleet growth and service upgrades, Air India strengthens India's appeal for international travellers and businesses. Better cargo reliability supports tourism logistics-from hospitality supplies to event freight-while driving profitable network growth. This is a practical step toward a more competitive position in cargo and tourism.

Next step for leaders

If your teams need to level up on AI-driven pricing and revenue management, explore practical training built for operators and managers: AI courses by job. For sector context, track inbound demand trends via official India tourism statistics and align capacity plans early.