If you’ve ever wondered why you find yourself paying for seat upgrades, priority boarding, or even in-flight meals, you’re not alone. In the latest episode of the Revenue Vector Podcast, Kris Glabinski dives deep into the psychology and strategy behind ancillary sales in the airline industry — and the insights go far beyond aviation. Here are our three biggest takeaways: 1. Smart Pricing Starts with Structure, Not Guesswork Airlines don’t just “pick a number” for extra legroom or baggage fees. They use a structured pricing framework that balances: This framework…
Day: August 15, 2025
How can airlines measure the success of dynamic pricing initiatives?
Overview Dynamic pricing has become a cornerstone of modern airline revenue management, enabling carriers to adjust fares in real time based on demand, competition, and market conditions. With over 80% of US airlines expected to use advanced dynamic pricing by 2025, measuring the effectiveness of these initiatives is essential for maximizing profitability and justifying technology investments. Accurate measurement helps revenue managers refine strategies, demonstrate ROI, and stay ahead in a competitive landscape. What Key Metrics Should Airlines Track to Assess Dynamic Pricing Performance? “The success of dynamic pricing lies not…