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Why airlines need to segment smarter | EyeforTravel

At one airline, Williams’ methodology led to airline was further breaking down business and leisure into sub-segments. He identified seven such segments; four business and three leisure. Business segments included both commuters (short haul; out on Monday, back on Friday) and seasonal workers (long stays); leisure included a differentiation between weekend vacationers and weekday vacationers.

The value of this new segmentation lies in both potential dynamic pricing and merchandising. Commuters are likely to value certain features far more than seasonal workers. And, although leisure is certainly more price sensitive than business in general, weekday vacationers (older, wealthier, less tech savvy) may value certain amenities more.

Airlines need to approach customer segmentation in new ways. Finding different ways to segment can offer increased opportunities for pricing differences and form the basis for more effective e-merchandising of ancillary services.

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Why airlines need to segment smarter | Travel Industry News & Conferences – EyeforTravel testing.