Mercator Blog

Topic: Aviation

Managing Unforecastable Airline Demand

Consumer product companies, like airlines, regularly develop demand forecasts for thousands of products.  Retailers, for example, must forecast not just how many men’s shirts will be purchased but what styles, colors, and sizes, and at which locations.  In the case of airlines, we not only forecast demand for each of a thousand or so flights a day for the next year, but we often forecast 15 price points and 20 or more O&Ds on each flight. The numbers of individual forecasts can become overwhelming.

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Topics: Aviation, Revenue Management

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Adaptability, Speed, and Partnerships: The Keys to Air Cargo Success

The air cargo industry as a whole is set to undergo significant changes in the near future. The shift in the business environment will require shippers to use increasingly automatized systems, integrate production networks more deeply, use advanced algorithms to determine predictive air shipping routes, and utilize new delivery methods.

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Topics: Aviation, Cargo

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Silicon Valley & Aviation: Embracing Innovation

After a puzzling period of non-engagement, the airline industry is forging ties with the innovators of Silicon Valley. Over 500 companies from other industries have already set up field offices in town, hoping to benefit from the innovative thinking of the tech world. And airlines are finally jumping on board.

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Topics: Aviation

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'Segment of One' and the Evolution of Airline Pricing

Airlines, like e-tailers and virtually all other e-merchandising companies, aspire to marketing to a “segment of one,” or highly customized merchandising approaches that account for individual purchase behavior in forming offers and prices. The concept of “segment of one” replaces traditional, broad-based segmentation between “business” and “leisure” and other conventional marketing segmentation schemes. The evolution of the industry from one fare to “segment of one” has taken fifty years, from de-regulation of the airlines in the late 1970’s up to today.  

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Topics: Aviation, Revenue Management

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Blockchain: The Next Evolution in Airline Loyalty Programs

In the US alone, the average household has memberships in 29 loyalty programs, with airline frequent flyer programs being one of the most common. Consumers are navigating a confusing maze of disconnected points and rewards systems—and quite frankly it’s unsustainable.

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Topics: Aviation, Customer Experience

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The Rise of Air Cargo Communities

Demand for special cargo—like oversized items, dangerous goods, pharmaceuticals, live animals, and other time/temperature sensitive items—is on the rise. For air cargo carriers, this trend presents both challenges and opportunities.

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Topics: Aviation, Cargo

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