Pricing & Revenue Management Blog

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Sergio Mendoza, PhD Sergio Mendoza, PhD Jun 28, 2017 8:00:00 AM

Airline Profits: The High Price of Doing Nothing – Infographic

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.

Daniel I. Pizarro Daniel I. Pizarro Aug 19, 2016 3:00:08 PM

Revenue Management & Pricing Experts: is AI a Threat or an Opportunity?

Will Artificial Intelligence rival airline revenue management and pricing analysts?

It is a fact, and surely you heard it is happening. The time when machines learn has come. In the airline industry, machines can learn about fare gaps from themselves, and airlines are looking beyond historical trends for yield management. They are running predictive analytics and interpretations. But will they replace or empower revenue management and pricing analysts?

Javier Jimenez Javier Jimenez Jul 19, 2016 10:00:00 AM

Airline Conferences Pricing and Revenue Managers Should Attend

Recently, we had an exciting experience at Aviation Festival Americas in Miami, where we met experts and discussed some of their most significant concerns in revenue management, pricing intelligence, airline fare visualization and big data analysis.

The airline industry continues running a roadshow of seminars, encounters and events around the world to meet, network and discuss important issues at all levels of operations.

Here is a list of interesting conferences airline pricing and revenue managers should attend over the next 12 months. 

Javier Jimenez Javier Jimenez Jul 12, 2016 7:00:00 AM

8 best reads for airline revenue managers

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.

Roberto Pérez Castro Roberto Pérez Castro Jun 17, 2016 1:25:52 PM

Airnguru airline pricing intelligence "refreshing" at Aviation Festival

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.  

Javier Jimenez Javier Jimenez May 2, 2016 9:52:52 AM

Is Data Science the future for airline revenue management?

Artificial intelligence and data science isn’t new in the airline industry. However, its development has only recently begun to make a leap forward for two reasons:

Sergio Mendoza, PhD Sergio Mendoza, PhD Mar 16, 2016 11:00:00 AM

How do airport fees influence airline pricing and demand stimulation?

In a previous post we spoke about fuel, exchange rates and other variables influencing pricing strategies. Today we will focus on a single, external variable, that affects the potential benefit of pricing strategies.

One of the most relevant tasks for an airline is making sure that the investment they made in fleet and itinerary gets the maximum possible return. This task is in the hands of several "post itinerary" functions within the airline, involving at least pricing, revenue management, sales and marketing teams, which, empowered by sophisticated analytics, make their best efforts to maximize the expected net revenues.

However, there are external barriers that constrain the growth potential of the airline and limit the power of the airline's pricing strategies. Some of these constraints may produce a relevant social detriment, because they limit the service quality and growth potential of the airline business as a whole and thus, they damage the economy. It may be the case, for example, of airport taxes and fees.

Javier Jimenez Javier Jimenez Mar 9, 2016 12:00:00 PM

Alternative customer experience can lead to new airline pricing models

A few months ago, an innovative and revolutionary start-up airline was launched at the APEX Expo 2015. It wasn’t Richard Branson with a new version of Virgin, or Mark Zuckerberg investing in the airline industry. It was Poppi, an airline whose approach to air travel is similar to Starbucks’ love for coffee: consumers don’t pay for the service, but the experience.

Sergio Mendoza, PhD Sergio Mendoza, PhD Mar 3, 2016 11:00:00 AM

How do fuel and exchange rates affect airline pricing strategies?

Pricing and revenue management teams aim at maximizing the expected net revenues produced from a given itinerary. Their fundamental levers are the price structures (demand segmentation rules and price levels) and the inventory allocation (demand forecasts and inventory optimization and allocation). Robust airline pricing and revenue management strategies involve the analysis and visualization of some critical variables and their long term behavior. These variables affect the optimum prices and inventory allocation directly or indirectly, in sometimes complex ways and substantial amounts.

Sergio Mendoza, PhD Sergio Mendoza, PhD Feb 1, 2016 3:09:15 PM

Mistake airfares: issues and trends in airline pricing

Airline yield management and pricing processes use complex calculations and consider several components, such as surcharges, taxes, exchange rates, etc, before submitting airfares for publication. Nowadays, any mistake airfare is quickly seized by online consumers who buy hundreds or thousands of tickets before airlines can even get an alert. For any airline pricing or revenue management team, this has become a nightmare.