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As revenue management forecasting evolves, consumers won't necessarily pay more in airfare overall. Rather, pricing will be more closely aligned with demand conditions, both strong and weak. Photo Credit: potowizard/Shutterstock.com
The upheaval caused by the Covid-19 pandemic has rocked the foundation of airline industry revenue management forecasting and opened the door for upstarts to win the business of a growing number of carriers.
The upshot for consumers could ultimately be pricier fares during times of high demand and even steeper discounts during off-season and low-travel periods.
Judson Rollins
"Right now there's the lowest disruption cost that there will ever be," said Judson Rollins, head of the New Zealand-based consultancy Propel Solutions and a former revenue manager at Air New Zealand. "I've talked to people at 10 airlines globally who said their carriers are pursuing other revenue management systems." He called the market shift "a tidal wave."