The Air Show Revenue Management 201
Dec 19, 2025
Brett Snyder dives deep into revenue management, challenging simpler approaches from a recent podcast. He dissects the role of basic economy, showing how it serves highly price-sensitive travelers without solving core RM issues. The discussion evolves into how airlines shifted strategies over time, with larger jets enabling legacy carriers to tap into ULCC demand. Loyalty programs emerge as a critical factor in maintaining a competitive edge. Finally, the potential of AI in redefining pricing strategies is explored, hinting at future transformations in the industry.
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Personal Roots In Revenue Management
- Brett recounts he and his wife both worked in revenue management and discussed RM at their dinner table.
- He also started his career in revenue management at America West and remained connected to colleagues.
Basic Economy Is Evolution, Not Revolution
- Basic Economy is another segmentation tool, not a revolutionary replacement for older pricing fences.
- It creates physical differentiation but coexists with many existing fare restrictions and price points.
Capacity Anchors Market Share
- Airlines face a natural market share tied to capacity, making share shifts hard without price or product differentiation.
- Revenue management's goal remains maximizing revenue by rearranging yields within that stable share.