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The new wave of airline revenue and pricing management – what next for the leisure customer?

Author

Listed:
  • Octavian Oancea

    (Etihad Airways)

  • Razvan Horga

    (Volantio)

Abstract

The advances in travel technology as well as the fierce competition that will continue in the following years will redefine not only the way people perceive the travel experience and the way it is distributed, but also the way airlines will price their products and manage their revenues. Higher transparency and excellent synchronization of systems, big data and powerful analytics, together with improvements in distribution in line with IATA’s New Distribution Capability initiative, will create the perfect environment to fine-tune the relationship between airlines and customers and offer them smarter choices and maybe even improve the public perception of revenue and pricing management. However, the deluge of bidirectional information could spur choice overload in the average customer, whereas the airlines could see distribution further taken over by intermediaries. In this article, we will explore what will be the role of the revenue and pricing decision maker in the years to come and how will airlines manage to better attract and keep its customers, with a focus on the leisure customer.

Suggested Citation

  • Octavian Oancea & Razvan Horga, 2018. "The new wave of airline revenue and pricing management – what next for the leisure customer?," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(3), pages 182-188, June.
    • Handle: RePEc:pal:jorapm:v:17:y:2018:i:3:d:10.1057_s41272-017-0115-z
    DOI: 10.1057/s41272-017-0115-z
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    References listed on IDEAS

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    1. Kalyan Talluri & Garrett van Ryzin, 2004. "Revenue Management Under a General Discrete Choice Model of Consumer Behavior," Management Science, INFORMS, vol. 50(1), pages 15-33, January.
    2. Park, Jeong-Yeol & Jang, SooCheong (Shawn), 2013. "Confused by too many choices? Choice overload in tourism," Tourism Management, Elsevier, vol. 35(C), pages 1-12.
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    Cited by:

    1. Octavian Oancea, 0. "Optimizing airline fare structures," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 0, pages 1-4.
    2. Octavian Oancea, 2020. "Optimizing airline fare structures," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 19(4), pages 230-233, August.
    3. Ku, Edward C.S., 2022. "Developing business process agility: Evidence from inter-organizational information systems of airlines and travel agencies," Journal of Air Transport Management, Elsevier, vol. 103(C).

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