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Achieving Real Dynamic Pricing in Air Travel

For decades, airlines have employed relatively static pricing concepts to offset the risks associated with unsold inventory and overbooking. The use of distinct pockets of inventory allocated to different prices has led to the misconception that the industry is already using dynamic pricing techniques. But don’t be fooled -existing applications sometimes called “dynamic pricing” are not dynamic at all.

The industry needs to be bolder in its considerations of technology infrastructures and radically challenge the norms to achieve a truly dynamic and continuous pricing model. The discussion is no longer about whether the industry’s legacy processes, concepts, and technology should disappear. It’s about how quickly we need them to disappear to enable modern business practices. And that journey also entails a mindset change.

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