Journal of Revenue and Pricing Management

, Volume 17, Issue 2, pp 91–101 | Cite as

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

Practice Article

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 

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Copyright information

© Macmillan Publishers Ltd 2018

Authors and Affiliations

  1. 1.Sabre ResearchSouthlakeUSA

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