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State of Airline
Pricing 2021
9th March 2021
OurPanel of Experts
Brian Wishlinski
Director,PartnersandAlliances
PROS
Ciaran Brannigan
Ex-DirectorofRevenue
Ryanair
Robin Chiang
Vice President-EMEA
KAYAK
Shweta Vashishth
Vice President– Sales
RateGain
Agenda
• InsightsIntothe Post-COVIDTraveler
• TrackingPricing Recovery intheNew Normal
• TechTrends For theNew Normal
• RevenueManagementChecklistfor 2021
January 2021 Saw the Roll Out of Vaccines Across the World
Global Recovery Being Driven by MEA, and NORAM
Insights Into the Post-COVID Traveler
Robin Chiang
GeneralManager (EMEA) KAYAK
TravelerDuration has Increased Due to Country Restrictions
Interregionaltravel duration spiked due
to COVID regulations put in place
o With quarantine measurements
put in place when traveling from
one country to another,
international travel trip duration
has increased
o Intraregional travel duration
remained steady for NORAM,
LATAM and APAC; EMEA
intraregional travel duration
increased as well, but saw a
decrease last summer due to
loosened restrictions
Prices haveDecreased for Most Regions
Prices havedecreased for all regions on
interregional travel except EMEA
Other Notable Changes in User Behaviour
o Last minute travel - Opportunistic bookings based upon upcoming restrictions & pricing
o Users areengaging with KAYAK’s “Flexible” filters, as flight flexibility is currently topof
mind
o Users areengaging with KAYAK’s “Covid Hub” –a mapwith 215 countries that is
updated daily, andis one of the most reliable sources oftravel restriction information
according toForbes
o Sustainability - “Eco-friendly” filter andsort order, drivingusers tomore environmentally
friendly flights. Multimodal will become increasingly important
o Workcation - Domestic workcations as well as countries like Bermuda offering “work
from abroad”visas
o Rental Cars - We’re seeing moreinterest in rentals, with the car vertical as our frontdoor
TrackingPricing Recoveryin the New Normal
Shweta Vashishth
Head – Travel Solutions-RateGain
January 2021 Also Saw the Recovery Halt in the Last Six Months
Increased Restrictions saw reduction in seat capacity
Source:IATA
ONDS that are Taking Time to Recover
AYTSTR
CGNMUC
CVGEWR
HAMMUC
MUCDUS
TXLGOT
STRBCN
STRCPH
STRNCE
39%
VIEBIO
ZAGHAJ
-100%
-80%
-60%
-40%
-20%
0%
20%
1 2 3 4 5
Source:RateGain
BLRSIN
PEKTAO
ISTCGN
BCNHAM
TAOPEK
ZRHGWT
HAMPMI
DUBHAM
STRCDG
PEKXMN
-40%
-20%
0%
20%
40%
60%
80%
100%
1 2 3 4 5 6
ONDS That are Showing the BestRecovery
Source:RateGain
DUBHAM
SINCCU
TNASHA
MADBOD
DUSFUE
BOMDEL
PMICGN
-40%
-20%
0%
20%
40%
60%
80%
1 2 3 4 5 6
ONDS That are Showing the BestRecovery
Source:RateGain
What WeNeed to Remember for 2021
RecoveryVolatility Till 2022
o Pent up Demand Spikes Being observed in period of restriction relaxation
Revisit Forecast Techniques
Short Haul More Favourableto Ancillaries
o Ask your provider to help with leading indicators data to predict demand spikes
o With Domestic Flights being key to recovery; airlines need to focus more on ancillaries
17
Tech Trends Forthe New Normal
BrianWishlinski
Director, Partnersand Alliances
PROS
Revenue Management Solutions will be Crucial in COVID Recovery Environment
New sources arebeing usedto predict demand
Supply probably recovering faster than demand
Competitive intelligence moreimportant than ever
+
A Joint Effort to Provide Comprehensive Intelligence to Airlines
Airlines are Using Recoveryto be Innovative
o Dynamic / continuous pricing provides airlines with more
flexibility
o Dynamic offers will provide real-timeshopping and pricing
options for customers
o Digital / e-commercesolution to capturemore of customer’s
wallet share
Poll
Q. What Challenges is your Airline Looking to Solve in 2021?
The Revenue Management Checklist For 2021
CiaranBrannigan
Ex-Directorof Revenue
RyanAir
Impact on Revenue Managementand Pricing
o Historical data irrelevant
o Impact onbooking profiles
o Traditional pricing segmentation not workingto stimulate
demand
o How to deal with shifting regulations and the impact on
demand
o What other data can RM teams get to help with decision
making
o How to leverage the knowledgeof RM andpricing teams to
align with overall commercial goals
Howwill pricing and RM evolve in the long term?
Old Methods Old Methods Current Hybrid
o Blend of historic and trends
o Live data – analysts and
system can see and detect
spikes
o Internal and external data will
feed into RM systems
o Shared data across the
organisation.
o Integrated decision making.
o Historical based
o Overnight/Periodic updates
o Internal data driven
o Siloed approach to data –
Functions using different
metrics and sources
o Day to day trends
o Workarounds to get intra day
updates.
o Using external data to supplement
decision making
o Sharing data and working together
has become essential to plan better
schedules/marketing efforts
Future Ways of working
Outlook and Checklist for 2021
o Early 2021is an opportunity to get ready for the recovery
o Evaluate systems and data and close gaps
o Reviewbooking data (high/low – trends)
o Competitive data – can youget this multiple times per day on close
indates
o Live booking feed – set upalerts
o Website data – searches/books – set up alerts
o Cross functional check– capacity review with network. Marketing
activity.
o External data – OTAs/Metas – what’s happening in themarket
o Regulatory – are therechangesin restrictions in yourmarkets. How
will theseimpact?
Thank You

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Webinar: State of Airline Pricing 2021

  • 1. State of Airline Pricing 2021 9th March 2021
  • 2. OurPanel of Experts Brian Wishlinski Director,PartnersandAlliances PROS Ciaran Brannigan Ex-DirectorofRevenue Ryanair Robin Chiang Vice President-EMEA KAYAK Shweta Vashishth Vice President– Sales RateGain
  • 3. Agenda • InsightsIntothe Post-COVIDTraveler • TrackingPricing Recovery intheNew Normal • TechTrends For theNew Normal • RevenueManagementChecklistfor 2021
  • 4. January 2021 Saw the Roll Out of Vaccines Across the World
  • 5. Global Recovery Being Driven by MEA, and NORAM
  • 6. Insights Into the Post-COVID Traveler Robin Chiang GeneralManager (EMEA) KAYAK
  • 7. TravelerDuration has Increased Due to Country Restrictions Interregionaltravel duration spiked due to COVID regulations put in place o With quarantine measurements put in place when traveling from one country to another, international travel trip duration has increased o Intraregional travel duration remained steady for NORAM, LATAM and APAC; EMEA intraregional travel duration increased as well, but saw a decrease last summer due to loosened restrictions
  • 8. Prices haveDecreased for Most Regions Prices havedecreased for all regions on interregional travel except EMEA
  • 9. Other Notable Changes in User Behaviour o Last minute travel - Opportunistic bookings based upon upcoming restrictions & pricing o Users areengaging with KAYAK’s “Flexible” filters, as flight flexibility is currently topof mind o Users areengaging with KAYAK’s “Covid Hub” –a mapwith 215 countries that is updated daily, andis one of the most reliable sources oftravel restriction information according toForbes o Sustainability - “Eco-friendly” filter andsort order, drivingusers tomore environmentally friendly flights. Multimodal will become increasingly important o Workcation - Domestic workcations as well as countries like Bermuda offering “work from abroad”visas o Rental Cars - We’re seeing moreinterest in rentals, with the car vertical as our frontdoor
  • 10. TrackingPricing Recoveryin the New Normal Shweta Vashishth Head – Travel Solutions-RateGain
  • 11. January 2021 Also Saw the Recovery Halt in the Last Six Months
  • 12. Increased Restrictions saw reduction in seat capacity Source:IATA
  • 13. ONDS that are Taking Time to Recover AYTSTR CGNMUC CVGEWR HAMMUC MUCDUS TXLGOT STRBCN STRCPH STRNCE 39% VIEBIO ZAGHAJ -100% -80% -60% -40% -20% 0% 20% 1 2 3 4 5 Source:RateGain
  • 15. DUBHAM SINCCU TNASHA MADBOD DUSFUE BOMDEL PMICGN -40% -20% 0% 20% 40% 60% 80% 1 2 3 4 5 6 ONDS That are Showing the BestRecovery Source:RateGain
  • 16. What WeNeed to Remember for 2021 RecoveryVolatility Till 2022 o Pent up Demand Spikes Being observed in period of restriction relaxation Revisit Forecast Techniques Short Haul More Favourableto Ancillaries o Ask your provider to help with leading indicators data to predict demand spikes o With Domestic Flights being key to recovery; airlines need to focus more on ancillaries
  • 17. 17 Tech Trends Forthe New Normal BrianWishlinski Director, Partnersand Alliances PROS
  • 18. Revenue Management Solutions will be Crucial in COVID Recovery Environment New sources arebeing usedto predict demand Supply probably recovering faster than demand Competitive intelligence moreimportant than ever
  • 19. + A Joint Effort to Provide Comprehensive Intelligence to Airlines
  • 20. Airlines are Using Recoveryto be Innovative o Dynamic / continuous pricing provides airlines with more flexibility o Dynamic offers will provide real-timeshopping and pricing options for customers o Digital / e-commercesolution to capturemore of customer’s wallet share
  • 21. Poll Q. What Challenges is your Airline Looking to Solve in 2021?
  • 22. The Revenue Management Checklist For 2021 CiaranBrannigan Ex-Directorof Revenue RyanAir
  • 23. Impact on Revenue Managementand Pricing o Historical data irrelevant o Impact onbooking profiles o Traditional pricing segmentation not workingto stimulate demand o How to deal with shifting regulations and the impact on demand o What other data can RM teams get to help with decision making o How to leverage the knowledgeof RM andpricing teams to align with overall commercial goals
  • 24. Howwill pricing and RM evolve in the long term? Old Methods Old Methods Current Hybrid o Blend of historic and trends o Live data – analysts and system can see and detect spikes o Internal and external data will feed into RM systems o Shared data across the organisation. o Integrated decision making. o Historical based o Overnight/Periodic updates o Internal data driven o Siloed approach to data – Functions using different metrics and sources o Day to day trends o Workarounds to get intra day updates. o Using external data to supplement decision making o Sharing data and working together has become essential to plan better schedules/marketing efforts Future Ways of working
  • 25. Outlook and Checklist for 2021 o Early 2021is an opportunity to get ready for the recovery o Evaluate systems and data and close gaps o Reviewbooking data (high/low – trends) o Competitive data – can youget this multiple times per day on close indates o Live booking feed – set upalerts o Website data – searches/books – set up alerts o Cross functional check– capacity review with network. Marketing activity. o External data – OTAs/Metas – what’s happening in themarket o Regulatory – are therechangesin restrictions in yourmarkets. How will theseimpact?

Editor's Notes

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