Mercator Blog

What It Takes to Be a Leader in Airline Revenue Management

Wall Street has been famous for paying highly-analytical “rocket scientists” millions in annual compensation to identify lucrative trades and to place high value financial bets. Arguably, airlines have an equivalent function in revenue management where complex algorithms are used to maximize revenue need to be managed,

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Topics: Aviation, Revenue Management

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Why Dynamic Pricing Is an Advantage for Air Cargo

Why do restaurants hold happy hours and late-night deals? Why does Uber surge? Why can the same airline trip vary by hundreds of dollars depending on when you book it? It all boils down to dynamic pricing, or changing prices based on market demand and contributing factors.

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Topics: Aviation, Cargo

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2017 Airline Distribution Outlook: A Break in Tradition with Disruptive Technologies

An American futurologist, Alvin Toffler, once said that technology is “the great growling engine of change”. For the airline industry this “great growling” could in fact be ear-deafening. As businesses now depend on new and cutting-edge technologies to keep up with the ever adaptable consumer market behavior, dated industries

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Topics: Aviation, Revenue Management, Distribution

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Seeing Airline Customer Experience Through the Eyes of Passengers

  This past October, a first-of-its-kind report was released called the Group XP Experience Index. The report leveraged data from BrandZ, the world’s largest brand equity database, to evaluate brands according to the strength of their customer experience. The Group XP Experience Index contains 30 global

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Topics: Aviation, Customer Experience

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O&D Revenue Management Systems and Processes for Hub Carriers

Airline academics estimate that O&D revenue management can further improve an airline’s revenue performance by another 2% above leg-based revenue management. But many airlines still utilize “leg-based” revenue management systems and apply crude tools to differentiate the value of customers “by O&D.”

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Topics: Aviation, Revenue Management

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How Airlines Can Become Players in the Platform Economy

The disruptive power of the platform economy has redefined the business landscape over the last decade. We’ve seen companies like Amazon, Alibaba, and Uber build multi-billion dollar platforms, and they continue to grow. The airline industry, however, has experienced the disruptive impact of the platform economy.

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Topics: Aviation

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