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ATPCO releases study of airline dynamic pricing

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Expert Report Debunks Myths and Examines Impacts on Airlines

ATPCO has released a report prepared by PODS Research LLC with exclusive research that defines, analyzes, and provides an assessment of the potential for airline dynamic pricing.

Responding to an industry-wide demand to clarify dynamic pricing, the study was commissioned by ATPCO to examine the various pricing tactics that airlines label as “dynamic pricing.” The report provides context on current airline pricing and revenue management practices, explores case studies of how airlines have adopted the concept so far, and examines the application and capabilities of dynamic pricing in other industries for potential transferability.

“Through this research, we identified several types of next-generation pricing mechanisms that can be called ‘dynamic pricing,'” said Tom Gregorson, Vice President of Products & Solutions at ATPCO. “From our position as a neutral industry enabler, we work with many airlines to demystify dynamic pricing methodology and empower them to define a dynamic pricing strategy that works best for their business model.”

Peter Belobaba, a partner of PODS Research LLC and an airline revenue management researcher at the Massachusetts Institute of Technology (MIT) said, “This collaboration with ATPCO gave us the opportunity to consolidate some of our research findings into a comprehensive report that will establish industry definitions, frameworks, and potential impacts for airlines as they pursue “dynamic pricing”, which we have been analyzing for years.”

The Executive Summary of the report is available as a free download at http://atpco.net/

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