Skift Trend Report: A New Formula for Airline Success
Innovation has always been a driving force in the airline industry. Whether we’re describing the early days of commercial passenger routes in the 1920s, or the introduction of the global distribution system and revenue management strategies in the 1980s, each of these evolutions has helped push the industry forward, creating new business opportunities while simultaneously helping to better satisfy customer needs. Today, the industry is ready to take the next leap forward, thanks to the introduction of customized offers.
In Skift’s newest report, we investigate why providing such offers could soon take a commanding lead as the main way airlines interact with travel shoppers. The concept of customized offers refers to a new marketing and revenue management model that enables airlines to more intelligently price, position, and promote their products and services, doing so in a way that is more likely to satisfy individual customer needs.
In this report:
- Introduction to customized offer creation in the airline industry
- Investigation of how the theory of customer heterogeneity makes it possible for airlines to identify differences between passengers
- Review of how customized offer creation impacts related industry disciplines such as revenue management and á la carte ancillary pricing
- Examination of potential challenges of distributing customized offers through the industry’s current channels
- Analysis of the potential industry-wide impact of customized offer creation to help combat commoditization