Airlines can add up to 5% additional net revenues to the bottom line if they improve their pricing processes, access real-time data to calculate fares, and rely on cloud-based technology to uncover hidden revenue opportunities, according to "The High Cost of Doing Nothing," our recently published infographic.
Shortly after unveiling our pricing intelligence platform at the Aviation Festival in Miami last month, my colleague and Airnguru co-founder Javier Jimenez and I were interviewed by Airline Profits. And when it comes to airline profits, we quickly formed a consensus - there aren't enough of them.
Ticketing and distribution systems can also face computer glitches that, in the dynamics of yield management, can have a ripple effect. These can be costly mistakes if the airline is not fast to correct it, due to a complex networked structure of legacy carriers, hiding errors and inconsistencies.
Earlier, we looked at some airline industry trends, wondering whether airline pricing optimization would evolve by 2020, as digital developments in areas such as Big Data, the Internet of Things (IoT) and Artificial Intelligence are reshaping the way airline pricing analytics works.
A couple of weeks ago, Richard Branson, the founder of Virgin Airlines, called for an exciting challenge on LinkedIn. He asked people how they think air travel will have changed in 10 years’ time.