Anyone who has purchased an airline ticket knows that it can feel like navigating a maze full of twists and turns in the form of price hikes and drops. CNN provides a behind-the-scenes insight into the “method behind the madness” that is airfare pricing in its article and video segment titled, “Seating secrets: How airlines decide what fare you pay.”
CNN spoke to UH adjunct professor of industrial engineering Andrew Boyd to get the details on airline revenue management – the science of adjusting fares in real time so that airlines can maximize revenue. Boyd previously served as a chief scientist at a company that supplies revenue management systems to airlines.
“Revenue management is really, fundamentally, about looking at what the market is willing to pay,” he said. To predict this, airlines use complex software that takes into account various factors, from overall global conditions to flyer profiles and individual preferences and perks.
Learn more about airline pricing secrets at https://www.cnn.com/travel/article/airline-pricing-secrets/