Have you ever talked to a co-passenger on a flight and been surprised to find out that they have been charged much higher or lower for an airline ticket in the same class as yours? This is a common practice in the aviation industry. As much as it might seem unfair, the aviation industry has one of the most dynamic pricing strategies compared to any other sector. The most common pricing strategy in the airline industry that most of us might be quite well aware of is demand-based pricing. During festive seasons or other times of high demand, the airline prices are often at their peak, and during the off-season, the same tickets are priced at much lesser rates. But do you think this is all that goes into consideration for companies in the aviation industry to tweak their pricing strategies?
Common pricing strategies of airline companies
Total customization
The standard price division in the aviation industry that we all know of is based on the classes – economy, business, and first-class. But you would be amazed to know that airlines have dozens of subdivisions. The airline carriers usually adjust the number of seats allocated to each fare class. When one class gets sold out, the sale price will leap to the next one. Though this practice is commonly being followed currently, it is still way off from the ultimate goals of carriers. Firms in the aviation industry aim at knowing their customers better through loyalty programs, registered users, and cookie tracking since it would help them to offer personalized pricing.
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