Author: FareTrack

The Concept and Evolution of Open Pricing in the Airline Industry

FareTrack
Evolution of open pricing

In recent months, the FareTrack team have spoken to many airline revenue managers about their revenue management strategies, and one key area that has been a frequent topic of discussion is the concept of open pricing. Unlike traditional methods, Open Pricing allows airlines to adjust fares dynamically in response to market demand, competitor pricing, and individual customer profiles. This flexibility promises a more tailored and optimized pricing strategy for airlines, departing from the rigid approaches of the past. The Evolution of Pricing Strategies The journey towards Open Pricing began with…

Solar Eclipse: A New Airline Revenue Management Strategy?

FareTrack
Solar Eclipse

On April 8th, a total solar eclipse will take place. Not only is this an awe-inspiring natural phenomenon, but it is also causing quite a stir among air travel passengers, as many, desperate to get as close to the action as possible, look to air travel during it. This has, of course, led to a spike in demand for flights, and airlines have been quick to capitalize on this demand to optimize their pricing. So, it begs the question, is a natural phenomenon such as an eclipse, Aurora Borealis, or…

The Future of Airline Ancillary Revenue: A Personalized Journey

FareTrack
Future of airline

In recent industry gatherings attended by the FareTrack team, one topic has consistently stolen the spotlight: ancillary revenue. The discourse surrounding its remarkable growth, future trajectory, and, most importantly, the strategies for revenue managers to bolster their ancillary revenue has been fervent. In this article, we provide a panoramic overview of the anticipated evolution of ancillary revenue and delve into the fundamental concepts propelling this transformation. In the coming years, we can expect to see a significant shift towards a more personalized and data-driven approach to ancillary offerings. The concept…

Navigating Screen Bias: A Must-Read Guide for Airline Revenue Management

FareTrack
eBook

Understanding and managing “screen bias” is crucial for airline revenue mangement. Our latest eBook delves deep into the evolution of this concept, from the era of Computer Reservation Systems (CRS) to today’s digital realm dominated by Online Travel Agencies (OTAs) and Metasearch engines. The Origins of Screen Bias: From CRS to Modern OTAs Originally rooted in CRS, screen bias was a tactic used by airlines to prioritize their flights over competitors’, significantly influencing booking decisions. Today, this dynamic persists in the digital era but with more intricate mechanisms involving search…

Navigating Screen Bias: A Must-Read Guide for Airline Revenue Management

FareTrack
Screen Bias for Airline Revenue Management,

Understanding and managing “screen bias” is crucial for airline revenue management. Our latest eBook delves deep into the evolution of this concept, from the era of Computer Reservation Systems (CRS) to today’s digital realm dominated by Online Travel Agencies (OTAs) and Metasearch engines. The Origins of Screen Bias: From CRS to Modern OTAs Originally rooted in CRS, screen bias was a tactic used by airlines to prioritize their flights over competitors’, significantly influencing booking decisions. Today, this dynamic persists in the digital era but with more intricate mechanisms involving search…

Introduction to Airline Ancillary Revenue

FareTrack
Ebook

Find out how airlines are leveraging it to develop better revenue management strategies and how it is evolving to shape the future of air travel. “In recent decades, ancillary revenue has transitioned from a peripheral element in airline economics to a fundamental cornerstone of pricing strategies. Anticipated to experience explosive growth in the future, it is poised to become a transformative trend in the realm of air travel.” Ancillaries have transcended their status as mere “add-ons” and now stand as a pivotal element in the revenue management strategies adopted by…

Insights from the World Aviation Festival 2023: Trends Shaping the Future of the Airline Industry

FareTrack
Aviation Festival

The World Aviation Festival brought together aviation industry leaders, innovators, and experts from around the globe. Our company, Faretrack, had the privilege of participating and connecting with numerous interesting people, prospects, customers, and even competitors. Among the wealth of information and discussions, three key trends emerged that are set to transform the air travel industry. Trend 1: Measuring Customer Willingness to Pay for Ancillary Products In the dynamic world of airline revenue management, understanding customer preferences and willingness to pay for various products has become a pivotal focus. Ancillary revenues, which encompass…

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

FareTrack
Decoding pricing behavior

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,…

When it comes to data visualization flexibility isn’t just a “nice to have”, it’s essential

FareTrack
Tableau

Data visualization flexibility is not just a luxury; it is a necessity, especially in the ever-evolving airline industry. With the introduction of NDC, increasing use of AI and Machine Learning, and other fundamental changes, the way airlines use and visualize data must undergo a transformation as well. While standardized graphs and reports have been the norm for many airlines when comparing fares against competitors, they fall short in capturing the complete story, particularly in dynamic market conditions. Consider this scenario: your current data supplier provides competitor pricing information for a…

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

FareTrack
Impact of events

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…