Mercator Blog

Topic: Revenue Management

Why Branded Fares Aren't Just About Upsell

Airlines that offer branded fares love to talk about upsell. “30% of passengers choose to purchase one of the upsell bundles!” (Hurrah) They conclude by “Branded fares are working”. This, however, is not the best way to look at branded fares, and is typically not the main reason airlines are increasingly offering such re-bundling of ancillary services.

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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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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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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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When Pricing Strategy and Overall Airline Strategy Are in Sync

Every strategy expert advocates a holistic formation of strategy, resulting in the integration of operations, commercial, pricing, and branding. Each function is linked and inter-dependent, and so every decision must be aligned with an overall consistent customer positioning within the chosen marketplace.

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Topics: Aviation, Revenue Management

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How Data Fragmentation Puts Airline Revenue at Risk

Much is written about siloed departments at airlines. At the largest airlines, each major function could have hundreds of employees housed on different floors – or in different countries, with different sub-cultures, and very various focuses. Sales and operations in particular, have disperse workforces spread across the global network.

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