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From product-oriented flight providers to customer-centric retailers: a dynamic offering framework and implementation guidelines for airlines

Author

Listed:
  • Jost Daft

    (Deutsche Lufthansa AG)

  • Sascha Albers

    (University of Antwerp
    Antwerp Management School)

  • Sebastian Stabenow

    (University of Antwerp)

Abstract

Industry insiders and analysts see dynamic offering—a highly responsive and customer-centric approach to offer design mirroring the practices of online retailers—as a viable instrument in airlines’ quest to regain profitability and maintain relevance in the digitalizing environment. While promising, adopting dynamic offering would also require a major overhaul of airlines’ technologies-in-use, as well as their organizational structures and processes in order to overcome the rigidities and limitations from today’s pre-defined fare-based offer creation. This paper synthesizes relevant concepts of offer management, outlines airlines’ key challenges to offer management adoption and suggests guidelines for airlines’ transition from pure flight providers to ‘airline retailers’ along six imperatives.

Suggested Citation

  • Jost Daft & Sascha Albers & Sebastian Stabenow, 2021. "From product-oriented flight providers to customer-centric retailers: a dynamic offering framework and implementation guidelines for airlines," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(6), pages 615-625, December.
    • Handle: RePEc:pal:jorapm:v:20:y:2021:i:6:d:10.1057_s41272-021-00345-8
    DOI: 10.1057/s41272-021-00345-8
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    Cited by:

    1. Mark Friesen & Sascha Albers & Jan Wajerski & Julie Laeremans, 2024. "The diffusion of dynamic pricing in the European parking industry," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 23(1), pages 3-13, February.
    2. Stacey Mumbower & Susan Hotle & Laurie A. Garrow, 2023. "Highly debated but still unbundled: The evolution of U.S. airline ancillary products and pricing strategies," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(4), pages 276-293, August.
    3. Resul Aydemir & Mehmet Melih Değirmenci & Abdullah Bilgin, 2023. "Estimation of passenger sell-up rates in airline revenue management by considering the effect of fare class availability," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(6), pages 501-513, December.
    4. Kevin K. Wang & Michael D. Wittman & Thomas Fiig, 2023. "Dynamic offer creation for airline ancillaries using a Markov chain choice model," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(2), pages 103-121, April.

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