Follow us on Twitter!
Blog Header Logo
DG&A's Transportation Consulting Blog
Subscribe to this list via RSS Blog posts tagged in dynamic pricing

b2ap3_thumbnail_dreamstime_xl_66940210.jpgIt was just a few years ago that the airline industry appeared to be teetering on the abyss. During this tumultuous period, many airlines merged or went out of business. Passengers had the upper hand and played one carrier off against another to their best advantage. One of the tools that helped salvage the industry and significantly boost its financial results has been pricing.  The airlines have become very clever in monetizing every aspect of their business.

If you want food on a plane, you have to pay for it. If you wish to reserve a seat or obtain a seat with more legroom, you pay for it. On many airlines, you pay for every bag you check. If a passenger travels to a specific set of destinations on a repetitive basis, some airlines will create a package deal (i.e. offer a block of tickets at a preferred rate).

The size of a plane utilized is tailored to the volume of passengers on the route. Certain larger size planes are utilized on heavy volume routes during the day and then assigned to less frequent evening fights on lower volume routes. Smaller planes or small regional partner airlines are utilized for flights to remote locations.

Now, with dynamic pricing, airlines adjust their fares based on seat availability, time of day, day of the week and other variables. Low fares are available in the early stages to create critical mass. As a flight fills up, rates go up. Passengers are “manipulated” into taking flights at slower times of the day to balance loads and maximize profits.

The brokers of the freight industry, online travel agents such as Expedia, are also skilled at managing travel data and selling flights, hotel rooms and car rentals. The LTL freight industry is in the process of learning from the airline industry.

Hits: 903
Continue reading 0 Comments

Most Recent Posts


Tag Cloud

President Obama capacity shortage KCS freight payment Surety bond Transportation service Crude Oil by Rail driver shortages US Auto Sales business start-up freight audit MPG trucking company acquisitions 2014 freight volumes freight cost savings carrier conference Load broker automation small business derailments Scott Monty freight rate increases freight agreements University of Tennessee Transcom Fleet Leasing financial management bulk shipping pipelines routing guide Emergent Strategy MBA Retail Keystone Pipeline Fire Phone Management transportation news shipper-carrier contracts 360ideaspace network optimization Education Infrastructure shipper-carrier collaboration Leadership RFP freight forwarders JB Hunt CRM Freight Carriers Association of Canada Rate per Mile 2015 Economic Forecast Dan Goodwill peak season 2014 freight forecast Life Lessons shipping wine Finance and Transportation coaching Tracy Matura Freight Capacity Packaging Colilers International Dedicated Contract Carriage US Economy Politics Hudsons Bay Company Conway IANA economic forecasts for 2012 freight transportation in 2011 Swift dimensional pricing Sales Training marketing broker bonds US Manufacturing Freight contracts TMS Shipper Bobby Harris freight RFP Wal-Mart NS transportation audit intermodal Retail transportation Consulting Right Shoring USA Truck shipper-carrier roundtable US Election customer engagement NMFC fuel surcharge Toronto CN Associates CN Rail freight costs Stephen Harper Trade Vision Doug Davis Job satisfaction FCA CITA Shipper Pulse Survey Harper Davos speech Canada's global strategy EBOR TMP Worldwide 2013 Economic Forecast LCV's ProMiles 2012 Transportation Business Strategies. Jugaad Business Strategy Transport Capital Partners (TCP) Rotman School of Business FMCSA cheap oil Freight Management Failure US Housing Market driver consumer centric Map-21 2014 economic forecast Adrian Gonzalez Career Advice professional drivers Training New Hires ShipMax e-commerce FCPC economy Canadian truckers Celadon Masters in Logistics $75000 bond Driving for Profit Donald Trump Training CSA Freight selling trucking companies BNSF freight transportation freight broker UP Social Media in Transportation Search engine optimization freight transportation conference CP Rail rail safety Canada U.S. trade truck drivers Canadian freight market Loblaw Ferromex the future of transportation Climate Change Transloading dynamic pricing Social Media TransForce broker security Derek Singleton LTL shipping freight payment freight audit Freight Shuttle System Software Advice Cleveland Cavaliers Omni Channel Muhammad Ali Yield Improvement future of freight industry Canadian Transportation & Logistics Regina Amazon BlueGrace Logistics CSX buying trucking companies Crisis management Facebook home delibery robotics FMS NAFTA Global Transportation Hub 3PL Canadian economy Horizontal Supply Chain Collaboration Freight Rates Success failure entrepreneur Werner APL autonomous vehicles Driver Shortage freight bid Inbound Transportation tanker cars Sales Management 3PLTL Entrepreneur hiring process Otto Trucking Comey Distribution Freight Recession Business Transformation Strategy truck driver transportation newspaper Business skills Transplace driverless Dedicated Trucking Microsoft Transportation Deferred Packaging Trump FuelQuest Transportation Buying Trends Survey Canada-U.S. trade agreement YRC drones mentoring solutions provider Reshoring New York Times Carriers Accessorial Charges Warehousing Blogging Schneider Logistics Success CSA scores LinkedIn Spanx Railway Association of Canada Truckload energy efficiency capacity shortages Broker Doug Nix David Tuttle Rail Twitter Global experience employee termination Canada NCC

Blog Archives