OnDemand WTP Pricing Research

4 ways to rethink airline RM in a personalised world | EyeforTravel

Travel suppliers were early adopters of analytical tools for demand forecasting and pricing, but the drive to personalisation is making RM work harder. Tom Bacon explains

Revenue management (RM) has certainly always been highly quantitative – requiring unique statistical and business-analytical skills to optimise use of sophisticated systems. Today, however, personalisation drives RM to ever-higher levels of analytical sophistication. Indeed, the very nature of analytics in the travel industry changes dramatically in a world of dynamic pricing and personalisation.

In retail analysis typically moves along a maturity curve that goes from being ‘descriptive’ (what was purchased) to ‘diagnostic’ (why) to ‘predictive’ (forecasting) and finally to ‘prescriptive’ (how to influence). Travel suppliers were early in the use of sophisticated analytical tools for demand forecasting for the purposes of pricing optimisation. Arguably, however, revenue management has primarily focused on the first and third types – descriptive and predictive analytics. New personalisation demands much more in those analytical arenas but also requires adoption of new diagnostic and prescriptive analytics.

Read complete article here: 

4 ways to rethink airline RM in a personalised world | Travel Industry News & Conferences – EyeforTravel.

Post a Comment

WP-SpamFree by Pole Position Marketing