Amazon, Google Adwords, and Uber – what do these companies have in common? And, what can your airline learn from them?

While the airline industry is vastly different from the sharing economy platforms and online retailers of the world, there is much to be learned from these players about effective pricing strategies. In fact, the majority of leading Internet marketplace companies use dynamic pricing as a solution when confronted with a scarcity of supply.

While, Amazon, Google AdWords, and Uber all use vastly different business approaches, there are some key takeaways for the airline industry. For example, airlines should understand that a pricing strategy doesn’t necessarily mean a race to discounts, promotions or offering the lowest fare. Today, a pricing strategy means being methodical about who an airline wants to be. It should clearly understand the customers it wants to serve and compete well to win and retain those customers. Airlines cannot get caught up in trying to be everything to everyone while competing head-to-head with every airline and still expect to achieve success.

Airlines need new pricing tools that combine innovative technology with revamped pricing processes and practices. The ideal scenario is to select tools that work collectively to solve the industry’s most critical and challenging pricing problems with a combined approach that includes both strategic and tactical pricing. That’s something the industry doesn’t have today. However, it’s well within reach.


Click here to learn more about how airlines should approach pricing optimization.