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AirGain Fare Segmentation | Competitive Pricing

AirGain Fare Segmentation | Competitive Pricing

Transition from Uncertain Pricing to Unlimited Intelligence with AirGain.

Enhancing Airline Route Planning with Market Manager

Streamline the process of tracking and analyzing market data for better route planning and decision-making.
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Competitive Airline Pricing
with AirGain Fare Segmentation

Scenario

The revenue manager of an airline aims to maximize profitability with competitive pricing. This requires staying ahead of fluctuating passenger demands and pricing through proactive strategies and data-driven decisions.

Manual Approach: Limitations and Inefficiencies

Earlier, the revenue team relied on manual methods for competitor pricing analysis, primarily using spreadsheets. While this approach offered some insights, it had significant limitations:

Lack of Granularity

Manual data collection could not effectively track the breakdown of competitor fares (Base Fare, YQ/YR), hindering a deep understanding of competitor strategies.

Limited Insights

Manual processes often lacked the ability to analyze competitor pricing components, such as discounts on base fares or YQ/YR fees, which are crucial for developing a competitive response.

Missed Opportunities

The volume of data involved made it difficult to identify trends and react quickly, leading to missed opportunities to adjust pricing and capture market share.

AirGain Fare Segmentation: A Revenue Management Solution

AirGain’s Fare Segmentation feature provided detailed insights into competitor pricing, empowering revenue managers with the data needed to adjust prices to compete more effectively and sell more seats.

1. Identifying Key Routes

Determine the O&D pairs where competitor pricing intelligence is most critical.

2. Define Segmentation Criteria

To get the most relevant insights, define specific criteria for segmenting competitor fares. This could involve analyzing by ONDs, travel class, and travel dates to understand pricing strategies across different customer segments and booking windows.

3. Quick Access to Data

The feature provides quick access to competitor pricing data, significantly reducing the time spent on manual data search and analysis.

4. Analysis and Decision Making

With organized and easily accessible data, the revenue manager can quickly analyze competitors’ fare components like gross fare, base fare and YQ/YR on different routes

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With Fare Segmentation, Revenue Managers could:

Analyze Competitor Pricing with Detailed Fare Breakdowns

Revenue managers gained detailed insights into competitor airline pricing on the selected O&D pairs by breaking down the fares into these components:

Fare Segmentation

  • Gross Fare (including taxes)
  • Base Fare
  • YQ/YR (airport and fuel fees)

By segmenting the data this way, they analyzed how much airlines charged for the base fare versus YQ/YR fees, and how discounts were applied. This helped in identifying areas where pricing adjustments were required to stay competitive.

Efficient and Data-Driven Pricing Decisions

The Fare Segmentation feature streamlined competitor data analysis, eliminating repetitive tasks and saving significant time. By providing granular data and instant insights, it empowered revenue managers with targeted pricing adjustments, strategic discounting, and enhanced competitiveness.

Optimize your pricing strategy with market insights.

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