To ensure transparency and allow brokers to make more informed decisions when requesting aircraft, the price shown in Avinode is based on historical quote data from each operator. Calculating the differences between the operator's profile price & quoted 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.
The Median Price Difference is located on the homepage of your account under Response Statistics which is calculated based on all your quotes during the past 30 days, see first image.
1. Response Statistics
The price difference for your tails is located under Fleet overview is calculated using quotes for this tail during the past 30 days, see second image.
2. Fleet Overview
What is Median Price Difference?
Median Price Difference is the median difference between the Quote Price and the Profile Price (i.e. the price based on the schedule and Avinode profiles).
When hovering over Median Price Difference in the Fleet overview, it will show the Higher and Lower range value. This will give an indication of how much your prices fluctuates.
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, to calculate the price shown to buyers in Avinode.
We recommend a Median Price Difference from -5% to + 5%. This will give you as an operator more control of the price per tail that is shown to buyers. Keeping within this range means minimum impact on price shown to buyers in search.
How is it calculated?
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 Estimated Quote range.
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 are less than 30 quotes for that tail in the last 30 days, the algorithm will fall back to 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 as previously described.
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 search, except for newly added companies before the calculation has been run.
Do buyers see the Median Price Difference?
No, this is a quality metric for you as an operator. Note that buyers see the price range for a specific trip, when hovering over the price shown in the search result.
Why does my aircraft show Median Price Difference N/A?
We need at least 30 quotes during the past 30 days in order for the calculation to reflect on a tail level. If Median Price Difference equals N/A, it means that you have not accepted at least 30 requests in the past 30 days for that tail.
Please sign in to leave a comment.