Using data analytics to capture revenue management benefits in turbulent periods

Revenue management (RM) is adversely affected and its benefits sharply reduced when the system and processes are not adjusted to changing market conditions. A history‐based model will take time to adjust – the months it may take to adjust will potentially cost an airline significantly in lost revenue opportunities. This article explores a data analytics‐based approach to capture RM benefits in periods of changing market conditions and when the system has lost accuracy because of improper calibration. It describes a real case study with an analytical framework that provided the airline an ability to continue to capture RM benefits while it made its transition to a more comprehensive solution.