Understand Your Customer, Maximize Your Revenue

Successful revenue management in the airline industry hinges on recognizing the dual economic challenges of spoilage and constrained capacity. Airlines must reconcile the dilemma of unsold seats, which represent lost revenue opportunities, with the need to select the right customers when demand exceeds supply. Historically, airlines viewed customers as mere transactions, focusing on individual seat sales. However, advancements in technology now enable the understanding of customer preferences and behaviors, allowing airlines to identify what customers are willing to pay and their likelihood of future travel. This customer-centric approach is essential for optimizing revenue.