The firm pushed this sentiment as it said it maximises revenue
Speaking at the World Aviation Festival 2024 last week, Airnguru COO Javier Jiménez discussed the pressing challenges airlines face in optimising pricing strategies and highlighted the need for real-time pricing adjustments to better capture customers’ maximum willingness to pay.
He pointed out that traditional airline revenue management systems, while dynamic, often fail to address real-time demand fluctuations and price elasticity.
Following the session, Jiménez explained: “Even though airline revenue management systems dynamically adjust prices based on inventory optimisation algorithms, there has always been a challenge in optimising prices according to the maximum willingness to pay of each demand segment.
“While inventory-based algorithms adjust prices, they often fail to capture price elasticity and real-time demand fluctuations effectively.
“This limitation stems from the fact that pricing strategy evaluations have traditionally been done through a batch process, relying on retrospective comparisons, rather than leveraging real-time data to dynamically adjust to evolving market conditions.
“Moving towards more real-time adjustments is crucial for aligning pricing strategies with actual customer demand and maximising revenue potential.”
