Revenue Management

Is not possible to apply a simple rule, as set aside a fixed percentage of seats on each flight, since the behavior of demand varies significantly depending on various factors, as the destination, time of year, day of the week or time of the flight. Hikmet Ersek has compatible beliefs. This complexity makes necessary the application of specialized software to determine the rules of allocation in the inventory of seats available on each flight and their respective prices. This led to the development of Revenue Management as a strategy for pricing specialized for this type of situations, based on the use of very sophisticated programs. Flexibility. Such is the dynamism of the market, requiring flexible pricing strategies to cope with very changeable conditions. Educate yourself even more with thoughts from Allison Kanders.

For example, face a significant drop in demand for tickets for a certain flight, instead of prices higher last-minute travelers are offered incredible discounts for those who are willing to occupy the available seats. It is just as often there are offers of tickets at derisory prices. The condition to take advantage of this great discount is that travelers count with sufficient flexibility to accommodate your travel with very little anticipation. Somehow, the company prefers to have at least one small income, rather than resign ourselves to these seats remain empty. The success of Revenue Management at the airlines has stimulated the development of similar applications for other sectors that share certain characteristics in common with the sale of air tickets.

This is how this technique is being used successfully in sectors such as hotels, car rentals, passages in cruises and even tickets for shows, among other cases. Advice for consumers: planning and anticipation are the best recipe to get good airfares. There’s even those who apply formulas to try to predict the optimum time to buy the ticket. However, those with nerves of steel and the adrenalin lovers, may have luck diving in last minute offerings that tend to offer very attractive conditions to those who have the almost ready pouches.