Travel Articles

The air fare ticketing and the airline industry is entering into a new orbit, well everything revolves the pricing and revenue management. It should be called evolution or revolution, might be a matter of dilemma and discussion but the change is for good and for good for sure.

This article talks about one book and a particular computer that are focused upon the future of the pricing of the air tickets first in US and then in the world and the idea is powerful enough to change the traditional way of purchasing an air ticket but also the amount of money one has to pay, drastically. The book of Dr. E. Andrew Boyd, “The Future of Pricing.”

How the three dimensions, people, science and technology of modern civilization of mankind are related with each other and play a significant role in determining the prices of air travel ticket is the theme and the story of the book. The words like scientific pricing, pricing software are moving toward becoming common and not only professionals but the general people also have started to generate a sense to understand the depth of these words that corresponds with the idea of future pricing of air tickets. The bottom line is that the pricing has become a science.

And the fact about every science is that it might look complicated from afar but ultimately makes the human life more bearable.

There are some websites supported by such programs those are designed to predict the pricing of the air fares whether the price going down or up. The algorithms developed by the air lines are the responsible factor for the price variations and are a well kept trade secret. All the airlines hire some good consultants who work for them in order to determine the algorithm in the underground room. These software programs identify a pattern by studying the past trends of variations in prices of air tickets and use the information to predict the future movements in the pricing. Fine, how you gonna trust the software? Well you don’t know until you experiment with the idea and see what the results are. The software developers claim that the success rate of predictions is seventy to seventy five percent and that the prices won’t go beyond the predicted range.

The database of five terabytes that consists approximately fifty billion different prices the computer works on the algorithm and focuses on the sensitivity of airline prices and on the different products of the same. The software monitors 115 different information that are evaluated after every couple of hours for almost every market while the system covers the whole US. Apart from demand and supply factor, there are elements like weather sports and some politically motivated shifts in the prices of air fares.

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