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 entire airline industry is undergoing a digital revolution, with airlines relying more than ever on digital technology to manage everything from booking and in-flight entertainment to aircraft maintenance. In this scenario, digital infrastructure will become the foundation that supports both the launch and the entire lifecycle of new airlines. It will help new companies differentiate themselves from competitors as they scale.