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.
CEO Sergio Mendoza explained how Big Data and Artificial Intelligence (AI) are changing our lives, our jobs and airline pricing, as Airnguru participated as an exhibitor at Aviation Festival Europe 2016, held in London on 7-9 September.
Market dynamics around large sport events like the Olympics test yield management and advanced predictive analytics of the airline industry.
In an ordinary day, airline pricing and yield management are a dynamic, competitive chess game for airline revenue managers. Now, imagine a major event that gathers people from around the world, which completely changes the dynamics of the market and flight demand patterns.
Pricing optimization and revenue management will have a very different face by 2020. Digital developments in areas such as Big Data, the Internet of Things (IoT) and Artificial Intelligence will ultimately reshape the way airline pricing analytics works.
Today, airline industry executives in charge of pricing optimization and revenue management must develop skills in different areas: big data mining, airline pricing intelligence, data science and price visualization, to say the least.
With this in mind, I was thinking what books should you be reading to keep yourselves updated. I provide you with some of the bestselling books for our field of work.
Revenue managers know it best: one thing is to get insightful data when they are monitoring competitive movements. However, understanding trends and figures for key variables such as pricing in any place and time, in order to make timely responsive decisions, is something very different.
Airnguru was a “refreshing novelty” of the two-day Aviation Festival Americas in Miami, thanks to a user-friendly competitive analysis tool, during a conference where Big Data analytics was a recurrent discussion.
Internet, the enabler; Low Cost Carriers, the flagships
We (the elder) remember those obscure times when legacy carriers were trapped by the oligopoly of the Global Distribution Systems (GDS's) outspread through their exclusive brick & mortar travel agency partners, and had no control of their ever growing distribution costs ("the distribution cost trap"). I remember those times when total distribution costs (including travel agent commissions, booking costs, sales office costs, etc) represented around 20%-25% of legacy airlines' revenues.