Decoding Airline Revenue Management: The Power of Data in Shaping Profits
In the earlier days, airline revenue management was similar to an art form, guided by science, mastered over time and polished through experience. Traditional approaches to RM methodologies were grounded in time-tested statistical models and demand forecasts. Methods like the Expected Marginal Seat Revenue (EMSR) were widely utilized. The core idea behind these models was straightforward: estimate future demand and adjust prices to maximize revenue.