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The price shown in Avinode is based on historical response data from each operator to ensure transparency and allow brokers to make more informed decisions when requesting aircraft. By calculating the differences between the operator’s profile price and the quote price over a period, we can estimate what the quoted price is likely to be for a trip. This calculated difference is called the Median Price Difference.
What is the Median Price Difference?
The Median Price Difference measures the difference between the Quote Price and the Profile Price (i.e., the price based on the schedule and Avinode profiles). Higher and lower range values will appear when hovering over the median price difference in the fleet overview. This will indicate how much your prices fluctuate.
- The Higher value equals the 90th percentile (i.e. the highest remaining value with the top 10% highest differences excluded).
- The Lower value equals the 10th percentile (i.e. the lowest remaining value with the bottom 10% differences excluded).
Why does it matter?
The Median Price Difference is used to adjust the Profile Price and calculate the price shown to buyers in Avinode. We recommend a Median Price Difference of 0%. This will give you, as an operator, more control of the price per tail shown to buyers. Keeping within the recommended value means having a minimum impact on the price shown to buyers in search.
How is it calculated?
Expand for more information
We calculate the difference between the Quote price and the Profile Price for quotes made during the past 30 days and sort them from the lowest to the highest difference. The Median Price Difference is the middle number of those sorted differences. We need at least 30 accepted quotes in the last 30 days to calculate the median price difference.
We use this method to remove the effect of outliers (i.e., quoting with a big price difference on an odd trip should not influence the median price difference).
- If there have been fewer than 30 quotes for that tail in the last 30 days, the algorithm will use all quotes for tails of the same aircraft type for that company.
- If there are less than 30 quotes in the last 30 days for that aircraft type, the algorithm will have a fallback to use all quotes for all tails of the same aircraft category for that company.
- If there are still less than 30 quotes in the last 30 days for that aircraft category, the algorithm will have a fallback to use all quotes for all tails for that company altogether.
If there are still not enough quotes, we increase the time period to use all quotes for that tail for the company over the last 180 days. If there are still not 30 quotes in 180 days, we use the same fallback mechanism described previously.
If we still don’t have enough quotes to calculate the Estimated Quote price range, we default to estimate the price based on your price settings (Schedule, Pricing Profile, etc.) and use that for all the ranges.
NOTE: The above calculations for the price coefficients and the fallback are done daily. An estimated quote will be visible for each tail in the search, except for newly added companies, before the calculation has been run.
Example
This picture is taken from the Operator Request-Response report, available for all operators under the Company - Reports tab. The median price difference for the example would be + 14%; in other words, +14% would be added to your pricing profile in Avinode search. We recommend keeping the median price difference to 0%.
Glossary
Profile price - Price for a trip based on pricing profile
Requested price - The price is visible in the search with MPD (visible as estimated quote adjustments under price details).
Response Status - If the request is accepted/declined/unanswered.
Response price - This is the quoted price you accept when answering a request.
FAQ
Do buyers see the median price difference?
No, this is a quality metric for you as an operator. When hovering over the price shown in the search result, buyers see the price range for a specific trip.
Why does my aircraft show a median price difference in N/A?
For the calculation to reflect on a tail level, we need at least 30 quotes during the past 30 days. If the Median Price Difference equals N/A, you have not accepted at least 30 requests for that tail in the past 30 days. Then, the fallback will be the median price difference for the same aircraft type. If there are not enough requests, it will be the category, and if there still are not enough requests, the fallback will be on the company level.
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