Optimizing pricing across sales channels with modern revenue management practices has long been a challenge for airlines. But the industry´s gradual transition to retailing with offers and orders will finally enable greater pricing flexibility. While dynamic pricing gives us the ability to quickly change price points, overcoming the limitations of the 26 RBDs to optimize core and ancillary product pricing rests with continuous pricing. Many systems, processes, and practices will need to change to reach the desired end-state but how can airlines begin adopting modern pricing techniques to incre...
Online retailers live by dynamic pricing, the ability to continuously adjust pricing along a variety of criteria. These can include real-time changes in supply and demand, competition, seasonality, basket composition, and customer profile. Many other factors can play in, but ultimately it's about flexibly optimizing a price point between supply and demand with contextual data. While dynamic pricing permeates our daily digital lives, many industries still need to catch up. Air cargo is one of them, although the concept is increasingly taking hold. So let´s have a look at why dynamic pricing is ...