07 Jul The industry transformation to dynamic offering
In 2020, the airlines’ mechanism to create and manage offers continues to rely on traditional fares and ancillaries filing with booking class inventory control. Airlines are slowly maturing to move away from these practices by leveraging the IATA New Distribution Capability standard which enables them to be in control of the offer creation and the ONE Order standard which allows the fulfilment of a much wider variety of retail-oriented products. This article explores various methods of product & price determination applied in the airline business. Then, the author shares views observed across the industry. Finally, the document summarizes the industry business drivers which will move Pricing and Revenue Management practices towards a world of offer optimization.
As Published in Journal of Revenue and Pricing Management