FlyerTalk Forums - View Single Post - Delta new Revenue Management model?
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Old Jun 2, 2020, 9:58 pm
  #15  
formeraa
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Originally Posted by MSPeconomist
If DL has to run flights using at most 60% of the seats on the aircraft, this will obviously raise costs per passenger, so we should expect prices to go up, although not necessarily proportional to what might be naively calculated due to the reduction in capacity. Elasticity of demand matters and costs aren't linear.

OTOH, I suspect that it's a new world in terms of being able to use previous big data and analytics to predict demand, so there will be apparent mistakes in revenue management as well as capacity/route planning.
AirlineS rely heavily on booking curves to predict demand within 60 to 90 days. With very limited capacity, lower fares will be scarce in some cases.
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