Tag: Price Ranking

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…

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,…