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The industry transformation to dynamic offering

Author

Listed:
  • Sébastien Touraine

    (Dynamic Offers – IATA)

Abstract

In 2020, the airlines’ mechanism to create and manage offers continues to rely on traditional fares and ancillaries filing with booking class inventory control. Airlines are slowly maturing to move away from these practices by leveraging the IATA New Distribution Capability standard which enables them to be in control of the offer creation and the ONE Order standard which allows the fulfilment of a much wider variety of retail-oriented products. This article explores various methods of product & price determination applied in the airline business. Then, the author shares views observed across the industry. Finally, the document summarizes the industry business drivers which will move Pricing and Revenue Management practices towards a world of offer optimization.

Suggested Citation

  • Sébastien Touraine, 2021. "The industry transformation to dynamic offering," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(6), pages 611-614, December.
    • Handle: RePEc:pal:jorapm:v:20:y:2021:i:6:d:10.1057_s41272-021-00344-9
    DOI: 10.1057/s41272-021-00344-9
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    References listed on IDEAS

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    1. Thomas Fiig & Remy Guen & Mathilde Gauchet, 2018. "Dynamic pricing of airline offers," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(6), pages 381-393, December.
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    Cited by:

    1. Stacey Mumbower & Susan Hotle & Laurie A. Garrow, 2023. "Highly debated but still unbundled: The evolution of U.S. airline ancillary products and pricing strategies," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(4), pages 276-293, August.
    2. Resul Aydemir & Mehmet Melih Değirmenci & Abdullah Bilgin, 2023. "Estimation of passenger sell-up rates in airline revenue management by considering the effect of fare class availability," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(6), pages 501-513, December.
    3. Kevin K. Wang & Michael D. Wittman & Thomas Fiig, 2023. "Dynamic offer creation for airline ancillaries using a Markov chain choice model," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(2), pages 103-121, April.

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