Dynamic, Continuous and Bundled Pricing: Options and Offers in Air Distribution

Summary

The notion that different passengers pay different prices for the same flight has been engrained into travelers’ psyches for a long time; airline pricing has long been considered complicated from the consumer’s perspective. In 2020, the concept of continuous pricing was introduced, and its capability is partly facilitated by IATA’s NDC. Gone is the reliance on fare buckets/seat classes as customers’ only options. How this personalization of airline seats and additional services into customizable bundles impacts consumer habits and opinions is yet to be seen. Nevertheless, the technology shows potential for greater innovation, and – with that – significant market disruption/shake up. This article addresses recent developments in dynamic, continuous pricing models and bundles for air tickets, with a focus on the potential impact for both consumers and industry stakeholders.