Forecasting, Fine-Tuning, and Embracing Tech for Airline Revenue Management Strategies

Modern airlines must innovate continually to optimize revenue management. This includes implementing effective forecasting methods, utilizing advanced data analytics, focusing on rank management, and embracing new technologies with flexible infrastructures. Let’s delve into key strategies for enhancing airline revenue management. Effective Forecasting for Airline Revenue Management Accurate demand forecasting is vital for revenue management. Two critical factors to consider are the data sources used for decision-making and the logical responses to demand fluctuations. For example, during high-demand periods, increasing fares can capitalize on the surge in bookings. Conversely, during low-demand…

Decoding Pricing Behavior: A Comparative Analysis of Low-Cost Carriers and Full-Service Airlines

Using FareTrack’s pricing behavioral analysis solution Optimize, we recently decided to take a look at two pricing approaches for a Low Cost Carrier (LCC) and a full service airline, to understand pricing dynamics and volatility, and crucially the impact this has on competitor fare extraction schedules. For the comparison, we used a popular route Las Vegas to Atlanta and took a look at pricing volatility over 180 days out from departure. Unsurprisingly, this analysis has unveiled a stark contrast in the pricing philosophies adopted by these two players. The LCC,…

The Impact of Events on Airline Revenue Management: Why a Comprehensive Event Database Matters!

Events have a powerful influence on the demand for airline travel. From concerts and sporting events to conferences and festivals, these gatherings draw in travelers from near and far, significantly affecting flight bookings. That’s why having a complete, accurate and up-to-date database of events is a game-changer for airlines looking to maximize revenue management strategies. Fueling High Demand: Major events act as catalysts for increased air travel demand. Attendees from different cities and countries converge to participate, creating a surge in bookings during event dates. Airlines need to anticipate these…

FareTrack Revolutionizes Airline Data Intelligence with Optimize: A Groundbreaking Approach to Competitor Behavior Analysis

FareTrack, the leading data intelligence provider for modern airlines, has unveiled its latest innovation: Optimize, a cutting-edge behavioral analysis tool. This ground-breaking solution is set to transform airline fare strategies by providing in-depth insights into airline competitors’ pricing behavior. Unlike any tool currently available in the market, Optimize leverages its advanced technology to analyze millions of data points, empowering airline revenue and pricing teams with unprecedented visibility into their competitors’ pricing behavior. By tracking and monitoring competitor pricing behavior, Optimize equips airlines with the ability to anticipate the probability of…

How events combined with a public holiday drive increased demand for airlines and the impact on fares

The air travel industry is highly dependent on events and public holidays, which can significantly impact airline demand. Large international sporting events and stadium concerts can attract tens of thousands of travelers, creating a profound effect on airline revenue. This impact is amplified when major live events coincide with a public holiday, as demonstrated by our recent analysis of the fare impact on the popular route between Dubai and London Heathrow. Dubai is a popular work destination for many British expats, and the UK Bank holidays, which provide an additional…

Interview with FareTrack’s VP Business Development: The APAC market & real-time fare benchmarking

Murtuza Dhinojwala, VP Business Development, APAC, at Aggregate Intelligence shares his insights on the rapidly growing APAC airline market, and the importance of access to real-time data for optimizing fares. Murtuza has been working closely with airline revenue management teams, supplying them with data intelligence for fare optimization. Find out more about his experience, the key trends he sees in the region, and how he has been supporting airlines to help grow revenue.  Asia-Pacific is the fastest-growing region for airline activity – with this in mind, why is it so…

The Close-to-real-time Dynamic Pricing Model

Revenue management has been commonly practised in the airline industry since the late 1970s to help airlines increase their revenues by managing price and seat availability. The perceived goal of Revenue Management and Pricing is to attempt to sell each seat at the highest possible price. Many complex factors are involved in achieving the goal and affecting the price. Most of them can be grouped into 3C definitions: Capacity – theoretically and on a short-term basis, a route is operated with an aircraft with a fixed capacity. However, in the mid-term,…