Flying Into the Unknown
Bernie Baldwin,
Ensuring maximum revenue from each ticket sale, as well as ancillaries, will be vital as the industry aims to rebound from the pandemic-led downturn. Bernie Baldwin reports
If ever there were a time for airlines to appreciate every single bit of currency in their accounts, the current crisis has to be it. once route networks have been re-established in line with where people can fly, given the timing of different countries coming out of lockdown, airlines will have to look at how they can best maximize the revenue from those operations.
Thankfully for the airlines, companies providing IT applications for revenue management have, over the past 12 months, been enhancing their products to ensure the revenue from flights is fully optimized.
At PROS according to Justin Jander, Director of Product Management, the two main areas of innovation over the past year have centered around science and the revenue manager’s interaction with the system. “On the science side, we released ‘Willingness-to-Pay’, a new functionality that greatly shifts how we forecast price-sensitive demand and make corresponding availability. The new approach relies on a continuous price/demand curve, with our goal being to open the door to dynamic pricing or a class-free world in the airline industry,” he comments.