Marco Contento

Dynamic Pricing: What’s preventing wider adoption by airlines?

The simplest answer to this question is that few airlines currently have the technology capability to do so. By nature, the airline industry demands very complex functions and extremely high reliability from Passenger Service System (PSS) platforms. Managing various price points across a fare ladder and forecasting demand for these price points makes the system even more complicated. Dynamic pricing systems must provide for an infinite set of conditions and contexts – whether these may apply in practice or not. The price may end up being any value at all, but these are calculated in real time ...
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Marco Contento

Dynamic Pricing: Oxymoron for the airline industry - Part 1

Airline companies have traditionally employed flexible pricing concepts in very creative ways to offset the risks associated with unsold inventory and overbooking. But it would be plain wrong to call it "dynamic pricing" in the truest sense. A big part of the problem is that airline companies just don't have sufficient control over the pricing process. How are airfares typically calculated? In the traditional model, airline companies publish their schedules (via intermediaries) to the GDS and file their fares with the Airline Tariff Publishing Company (ATPCo). When a passenger or a travel agen...
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