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An approach to offer management: maximizing sales with fare products and ancillaries

Ben Vinod (), Richard Ratliff and Vikram Jayaram
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Ben Vinod: Sabre Research
Richard Ratliff: Sabre Research
Vikram Jayaram: Sabre Research

Journal of Revenue and Pricing Management, 2018, vol. 17, issue 2, 91-101

Abstract: Abstract With the growth in ancillary sales, an area of increasing importance for airlines is the concept of offer management, which entails the creation of dynamic, custom, personalized offers consisting of a flight itinerary and ancillary products offered by an airline. This practice-oriented, overview paper provides an end-to-end, future-oriented framework for determining the composition of optimal base fare and ancillary bundles by customer trip-purpose segment followed by 1:1 personalization to maximize total sales. Our focus in this paper is primarily on the proposed offer management framework and its sub-components.

Keywords: Revenue management; Ancillary products; Willingness-to-pay; Bundles; Customer segmentation; Personalization; Controlled experiments (search for similar items in EconPapers)
Date: 2018
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