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Pricing Strategies

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With relatively fixed capacities and costs, many of today’s airlines assign groups of customers to market segments with different prices that demand elasticity. But discriminating by price is only relevant if there is great demand elasticity and this depends on internal factors like distribution channels, products and the applicable fare restrictions that are available, but also external factors like competition and the general market environment.

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Regardless of whether you are looking to simplify your pricing structure or differentiate your fares to incorporate a unique market approach with code shares or O&D – fares, PROLOGIS is simply your ideal partner.

Based on industry standards (ATPCO), we help your airline to implement a variable pricing structure by performing comprehensive analysis of your current pricing and fare structure based on criteria such as costs, competitors, product value and maximizing your airline’s revenue by offering the best possible price.

Furthermore, competitor pricing benchmarking and analysis is a PROLOGIS service that will help your airline tailor its inventory levels based on competitive fare information. It all starts with exploring and introducing the proper revenue management strategies that allow you to react to competitor fare changes, including setting up an all-embracing set of business rules based on the airline’s forecasted load factor, current booking situation and historic booking pattern.

During this ongoing process, you will need to institute competitive revenue management in order to be able to recommend inventory control changes based on the lowest selling competitor fare in the marketplace. You will be able to monitor the performance of the markets by introducing efficient competitor reporting aimed at making compulsory tactical improvements that increase revenue performance.

If you would like more information or have any questions, please do not hesitate to contact us!