Personalised Pricing Proof of Concept: “Just for You” Targeted Fare Sale Offers
Location: Melbourne, VIC
Duration: 5 months
Proposed start date: 15 September 2018
Keywords: Price modelling, AI/Machine learning algorithm, Data science, Programming, SQL, Python, Statistics
Please note: Due to funding requirements, students must have Australian Citizenship or Permanent Residency to apply. Any applicants not meeting this requirement will be ineligible for this project.
Jetstar presently offers sale fares (i.e. below the lead-in price) based on cumulative demand forecasts and present flight passenger loads. Today, sales fares are one-size-fits-all with no context of customer intent or willingness to pay. Recently, Jetstar started developing machine learning models to predict individual intent to book a flight within the next 30-45 days. Moving forward, Jetstar wants to start understanding price sensitivities and discounting thresholds required to determine what sale fare should be offered to each individual customer based on their intent to travel and willingness to pay.
PhD interns will be working across Data Engineering, Data Science, Pricing and Revenue Management and Digital Marketing to develop a pilot scenario to understand what discount thresholds will yield better conversion while maximizing revenue opportunities. This will inform future business strategy on how Jetstar can make use of the learnings to scale across its operations.
Research to be Conducted
Key questions Jetstar believes the successful applicants can contribute to answering include:
- What are the optimum pricing discount thresholds?
- What co-horts of customers require which discounts to optimise demand and revenue?
- What is the impact to conversion (positive and/or negative) when combining discount thresholds with customer intent?
Jetstar has the data analysis environment, toolset and business support to proceed with testing personalised pricing to support the Project. The present blocker relates to skillsets necessary across data engineering and data science to develop, deliver and measure the outcome of the project.
We are looking for a PhD student with the following skills:
Technical – Data Science
- Background on a quantitative discipline such as mathematics or engineering
- Sound understanding of statistics
- Programming experience (Python/R/Spark preferred)
- Familiarity with the AWS data ecosystem (S3, EMR, Redshift, Athena)
Technical – Data Engineering
- Experience developing data pipelines in AWS (S3, Kinesis, Lambda, Batch, Glue, Data Pipeline, EMR, Redshift, Athena)
- Programming experience (SQL and Python / R / Spark)
- Strong data modelling skills including data profiling, data transformation
- Familiarity with cloud automation and infrastructure (CloudFormation, CloudWatch, EC2, Docker, Redhat/Centos Linux, Windows 2012+)
- Software development experience including managing requirements, source control (CI/CD), testing
- Familiarity with Agile methodology (SCRUM/Kanban)
Functional – all roles
- Ability to quickly understand Jetstar’s data structure
- Stakeholder engagement
- Good communication skills
- Data interpretation & presentation
- Commercial acumen
- Outcomes explained in business language rather than technical language
- Power BI, Tableau or equivalent visualisation tool
The project will develop, deliver and test an AI/machine learning algorithm to automate the allocation of fare discounts to each customer based on their intent to travel and willingness to pay. The project will deliver an experiment in market in order to analyse the effectiveness of the algorithm along with potential business impacts to revenue (both positive and negative) to form a recommendation on next steps. If successful, the project will also inform, how the solution can be scaled across Jetstar’s existing systems including data analytics, digital distribution and pricing & revenue management applications.
Along with the project outputs, the successful interns will provide advice on discounting thresholds and how these can be applied to maximise revenue opportunities for future consideration by Jetstar management.
The intern will receive $3,000 per month of the internship, usually in the form of stipend payments.
It is expected that the intern will primarily undertake this research project during regular business hours, spending at least 80% of their time on-site with the industry partner. The intern will be expected to maintain contact with their academic mentor throughout the internship either through face-to-face or phone meetings as appropriate.
The intern and their academic mentor will have the opportunity to negotiate the project’s scope, milestones and timeline during the project planning stage.
29 August 2018
INT – 0487
FOR ANY ENQUIRIES ABOUT THIS INTERNSHIP03 8344 1785