Research Paper

Airline Fare Families and Beyond - Untangle Fare Architectures and Improve Monetization Capabilities

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The purpose of this report is to examine the current state of the airline industry and identify the best practices that full-service carriers (FSC) currently use to manage their fare design and monetization opportunities within their sales channels. We will examine the fare offers of the biggest FSC globally along five dimensions: fare range (breath), value drivers, pricing, availability, and the online booking process. Lastly, we will derive a clear approach that will enable airline managers to optimize their fare offering and effectively tap the willingness to pay of different customer segments. In many of our projects, we have helped airlines identify the key value drivers for their markets as a basis for structuring their fare design. This report presents several important insights developed using our vast expertise in the air travel space.

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